Governor Charles D. Baker's Budget Recommendation - House 1 Fiscal Year 2018

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2.622 -Certified Housing Development Tax Credit

Item Description FY2014 FY2015 FY2016 FY2017 FY2018
2.622 Certified Housing Development Tax Credit
Certified Housing Development Program provides a credit for certain qualified rehabilitation expenditures with respect to a certified housing development projects created by adding subsection (q) to G.L. c. 62, § 6 and section 38BB to G.L. c. 63 . The credit may be up to 10% of the cost of "qualified substantial rehabilitation expenditures" of the market rate units within the projects as defined in G.L. c. 40V, § 1 .

There is a $5 million ($10 million from January 1, 2015 to December 31, 2018) cap on the amount of credit that may be awarded under the program in a calendar year. The cap is part of an over-all $25 million ($30 million from January 1, 2015 to December 31, 2018) cap imposed on the Economic Development Incentive Program (EDIP) credit authorized pursuant to G.L. c. 62 § 6(g) and c. 63, 38N .

Effective January 1, 2017, the certified housing development tax credit is available for 25% of "qualified project expenditures" instead of 10% of "qualified substantial rehabilitation expenditures." The carry forward period for which the credit can be used is changed from 5 to 10 years. In addition, the annual cap is no longer a part of the overall annual cap imposed on the EDIP. For further information, see TIR 16-15.

Origin:  Origin: St. 2010, c. 240 ; M.G.L. c. 40V ; G.L. c. 63, § 38BB
Estimate:   $9.0 		included in 2.605 included in 2.605 included in 2.605 included in 2.605 9.0

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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