SB 47

Abstract

Income tax; housing opportunity tax credits. Removes the $15 million credit cap imposed on the Virginia housing opportunity tax credit and allows taxpayers to receive a state-level credit in an amount substantially similar to the amount of federal credit allocated or allowed by the Virginia Housing Development Authority for 10 years. Under current law, the Virginia Housing Development Authority is required to allocate the credit for one year only.

Income tax; housing opportunity tax credits.Increases the aggregate annual limit on housing opportunity tax creditsfrom $15 million to the sum of (i) $150 million, (ii) the amountby which the allocation for the previous year exceeds credits actuallyreserved in that year, and (iii) the amount of credits recapturedor disallowed for the previous year. The bill removes the credit'ssunset, which under current law is January 1, 2026; however, the Virginia Housing Development Authority (the Authority), which administersthe credit, would be authorized to reserve credits only for fiscalyears beginning in January 1, 2021, but before January 1, 2026. The bill directs the Authority, which is theagency charged with administering the federal low-income housingtax credit (the federal credit), to reserve a housing opportunitytax credit (the state credit) for a taxpayer whenever it allocatesa federal credit. The reserved state credit must be at least one-halfof all federal credits allocated to the taxpayer over the 10-yearperiod for the federal credit. However, the bill limits the amountof credits a taxpayer may claim in a single taxable year to the lesserof (a) the amount of the federal credit allocated to the taxpayeror (b) one-tenth of the reserved amount. Thebill removes the Authority's power to allow credit applicants tosell credits to other taxpayers.