Governor Deval Patrick's Budget Recommendation - House 1 Fiscal Year 2012

Governor's Budget Recommendation FY 2012

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2.609 -Low Income Housing Credit


Item DescriptionFY2010 FY2011 FY2012
2.609 Low Income Housing Credit
This credit is administered through the Massachusetts Department of Housing and Community Development (DHCD). The Low-Income Housing Credit is available to taxpayers that claim a U.S. credit for the construction or development of low income housing. The state credit is taken over five years. The amount of credit a taxpayer may claim for a qualified Massachusetts project is allocated by the DHCD and is based on a total pool of money awarded to the Commonwealth. The LIHC is not subject to the 50% limitation rule for corporate taxpayers. If the taxpayer disposes of the property generating the LIHC, a portion of the credit may be subject to recapture.

Under prior law, the Massachusetts low-income housing tax credits were available only to taxpayers who had been allocated federal low-income housing tax credits. Effective August 1, 2010, the Act allows the Department of Housing and Community Development to grant state low-income housing credits (within the existing $10 million annual cap) to otherwise eligible projects that do not receive a federal low-income housing credit. 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 2010 approximately $16.8 million were claimed by financial institutions and insurance companies in addition to $2.1 million that was claimed by corporations. (The same impacts in fiscal years 2011 and 2012) . See Item 1.607

Origin:  St. 2010, c. 240, S. 116 and 117 amending M.G.L. c. 62, S. 6I; St. 2010, c. 240, S.123 and 124 amending M.G.L. c. 63, S. 31H, TIR 10-15, IRC, S. 42.
Estimate:  $2.2
2.2 2.2 2.2

Key:

ORIGIN  
IRCFederal 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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