Under G.L. c. 62, § 6I and G.L. c. 63, § 31H, a low-income housing credit is available to eligible c. 62 or c. 63 taxpayers that invest in affordable rental housing ("Qualified Massachusetts Projects"). The Low-Income Housing Tax Credit (LIHTC) is administered through the Massachusetts Department of Housing and Community Development (DHCD). The credit may be claimed in the year that the Qualified Massachusetts Project is placed in service and for each of the four subsequent taxable years.
DHCD ultimately allocates the amount of credit a taxpayer can claim based on an annual aggregate statewide limit, which, prior to the Economic Development Act, was $20 million. Effective for tax years beginning on or after January 1, 2021 and ending on or before December 31, 2025, the Economic Development Act raises the credit's annual limit from $20 million to $40 million. For tax years beginning on or after January 1, 2026, the credit's annual limit will revert to $20 million.
The LIHTC is a transferable, non-refundable, and may be carried forward for up to 5 years.
Origin: St. 2018, c. 228; M.G.L. c. 63, § 31H
Corporate Excise Tax
Credits Against Tax
2.609
Low Income Housing Credit
Under G.L. c. 62, § 6I and G.L. c. 63, § 31H, a low-income housing credit is available to eligible c. 62 or c. 63 taxpayers that invest in affordable rental housing ("Qualified Massachusetts Projects"). The Low-Income Housing Tax Credit (LIHTC) is administered through the Massachusetts Department of Housing and Community Development (DHCD). The credit may be claimed in the year that the Qualified Massachusetts Project is placed in service and for each of the four subsequent taxable years. <BR><BR>DHCD ultimately allocates the amount of credit a taxpayer can claim based on an annual aggregate statewide limit, which, prior to the Economic Development Act, was $20 million. Effective for tax years beginning on or after January 1, 2021 and ending on or before December 31, 2025, the Economic Development Act raises the credit's annual limit from $20 million to $40 million. For tax years beginning on or after January 1, 2026, the credit's annual limit will revert to $20 million.<BR><BR>The LIHTC is a transferable, non-refundable, and may be carried forward for up to 5 years.
<a href="https://malegislature.gov/Laws/SessionLaws/Acts/2018/Chapter228" target="_blank">St. 2018, c. 228</a>; <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section31h" target="_blank">M.G.L. c. 63, § 31H</a>
92.8
97.5
102.1
106.7
111.4
