The Low-Income Housing Tax Credit (LIHTC) is administered through the Massachusetts Department of Housing and Community Development (DHCD). The LIHTC is non-refundable credit available to corporate excise and personal income taxpayers for the construction or development of low income housing. The amount of credit that a taxpayer may claim for a qualified Massachusetts project is allocated by the DHCD and is subject to an annual cap of $100 million through 2020, and $50 million thereafter (unless otherwise authorized by DHCD). The LIHTC is not subject to the 50% limitation rule for corporate taxpayers. If the taxpayer disposes of the property generating the LIHTC, a portion of the credit is 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. However, effective August 1, 2010, the legislature authorized DHCD to grant state low-income housing tax credits (within the annual cap) to otherwise eligible projects that do not receive a federal low-income housing credit.
The LIHTC is a transferable, non-refundable, five year credit, which may be carried forward for up to 5 years.
Effective January 1, 2017, the LIHTC expanded to also provide a non-refundable, single year tax credit for corporate excise and personal income taxpayers that donate real or personal property to certain non-profit entities for use in purchasing, constructing, or rehabilitating a qualified Massachusetts project. This credit is generally limited to 50% but may be increased to 65% of the amount of the donation. The credit must be claimed in the year that the qualifying donation is made and credit amounts that exceed the tax due may be carried forward for up to five years. For further information, see TIR 16-15.
See also Corporate item 2.609.
Origin: M.G.L. c. 62, § 6I a
Personal Income Tax
Credits Against Tax
1.607
Low Income Housing Credit
The Low-Income Housing Tax Credit (LIHTC) is administered through the Massachusetts Department of Housing and Community Development (DHCD). The LIHTC is non-refundable credit available to corporate excise and personal income taxpayers for the construction or development of low income housing. The amount of credit that a taxpayer may claim for a qualified Massachusetts project is allocated by the DHCD and is subject to an annual cap of $100 million through 2020, and $50 million thereafter (unless otherwise authorized by DHCD). The LIHTC is not subject to the 50% limitation rule for corporate taxpayers. If the taxpayer disposes of the property generating the LIHTC, a portion of the credit is subject to recapture. <BR><BR>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. However, effective August 1, 2010, the legislature authorized DHCD to grant state low-income housing tax credits (within the annual cap) to otherwise eligible projects that do not receive a federal low-income housing credit.<BR><BR>The LIHTC is a transferable, non-refundable, five year credit, which may be carried forward for up to 5 years. <BR><BR>Effective January 1, 2017, the LIHTC expanded to also provide a non-refundable, single year tax credit for corporate excise and personal income taxpayers that donate real or personal property to certain non-profit entities for use in purchasing, constructing, or rehabilitating a qualified Massachusetts project. This credit is generally limited to 50% but may be increased to 65% of the amount of the donation. The credit must be claimed in the year that the qualifying donation is made and credit amounts that exceed the tax due may be carried forward for up to five years. For further information, see TIR 16-15. <BR>See also Corporate item <a href="/tax-expenditure-budget/corporate-excise-tax/credits-against-tax/2-609">2.609</a>.
M.G.L. <a href="http://www.mass.gov/legis/laws/mgl/62-6i.htm" target="_blank">c. 62, § 6I a</a>
8.8
8.8
8.8
7.0
7.7
