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Home > Tax Expenditure Budget > Summary > Corporate Excise Tax > Credits Against Tax > 2.609 - Low Income Housing Credit

2.609 -Low Income Housing Credit

Item	Description	FY2008	FY2009	FY2010
2.609	Low Income Housing Credit Effective January 1, 2001, a credit against the corporate excise is provided for low-income housing projects. The Department of Housing and Community Development allocates the low income housing credit from a pool of available credits granted under section 42 of the Internal Revenue Code among qualified low-income housing projects. A taxpayer allocated a federal low-income housing credit may also be eligible for a state credit based on the credit amount allocated to a low-income housing project that the taxpayer owns. The credits may be sold or transferred to another taxpayer. Many of these credits are claimed by financial institutions and insurance companies, which are not included in this tax expenditure budget. The Department of Revenue estimates that in fiscal year 2008 approximately $16.2 million in low income housing credits were claimed by financial institutions and insurance companies in addition to $2.7 million that was claimed by corporations. The Department estimates that in fiscal year 2009 approximately $15.8 million in low income housing credits will be claimed by financial institutions and insurance companies in addition to $2.9 million claimed by corporations, and that in fiscal year 2010 approximately $15.5 million will be claimed by financial institutions and insurance companies, in addition to the amount shown for corporations in this tax expenditure. (See Item 1.607) Origin: M.G.L. c. 63, S. 31H Estimate: $3.1	2.7	2.9	3.1

Key:

ORIGIN
IRC	Federal Internal Revenue Code (26 U.S.C.)
M.G.L.	Massachusetts General Laws
U.S.C	United States Code
ESTIMATES	All estimates are in $ millions.

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