Income tax, state; housing opportunity tax credits.

Bill Summary:

Income tax; housing opportunity tax credits. Provides
that for award cycles, defined in the bill as the 12-month period during which
the Virginia Housing and Development Authority (the
Authority) awards tax credits to eligible projects, beginning on and
after January 1, 2021, but before July 1, 2025, and upon approving a federal
low-income housing tax credit for a qualified project pursuant to the Authority's qualified allocation plan, the Authority shall award a housing opportunity tax
credit for the owner of the qualified project so long as doing so will not
result in exceeding the award cycle cap, defined as the sum of (i) $150
million, (ii) the amount, if any, by which the award cycle cap for the
preceding award cycle exceeds the tax credits awarded by
the Authority in that award cycle, and (iii) the amount of tax credits
recaptured or otherwise disallowed in the preceding fiscal year. The bill provides that the housing opportunity tax credit
award shall not be less than one-half of the aggregate amount of the federal
low-income housing tax credit approved for the qualified project under the Authority's qualified allocation plan for all years
of the project's credit period. The bill requires the
Authority to send written notice of the award to the owner of the
qualified project and provides that a housing
opportunity tax credit shall be allowed for such qualified project for each
year of the credit period, in an amount equal to the lesser of (a) the amount of federal low-income housing tax credit
allocated or allowed by the Authority to such qualified project, except that
there shall be no reduction in the tax credit allowable in the first year of
the credit period due to the calculation in 26 U.S.C. § 42(f)(2), or (b) one-tenth of the tax credit amount stated in the
award notice.

Bill Patron: Bloxom

Last Action(s):
(House) Left in Appropriations February 15, 2022

Bill Status: