The Low-Income Housing Tax Credit (LIHTC) is administered through the Massachusetts Department of Housing and Community Development (DHCD). The LIHTC is a five- year, non-refundable credit available to corporate excise and personal income taxpayers for (i) the construction or development of new low income housing, (ii) the preservation and improvement of existing state or federally-assisted housing or (iiI) the donation of real or personal property to certain non-profit entities for use in purchasing, constructing or rehabilitating a project otherwise eligible for the LIHTC. The amount of credit that Massachusetts taxpayers may claim for a qualified Massachusetts project is allocated by the DHCD and is subject to an annual cap of $125 million through 2024, 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.
The LIHTC is a transferable, non-refundable, five year credit, which may be carried forward for up to 5 years.
The credit for the donation of property is a non-refundable, single year tax credit for corporate excise and personal income. 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 a five- year, non-refundable credit available to corporate excise and personal income taxpayers for (i) the construction or development of new low income housing, (ii) the preservation and improvement of existing state or federally-assisted housing or (iiI) the donation of real or personal property to certain non-profit entities for use in purchasing, constructing or rehabilitating a project otherwise eligible for the LIHTC. The amount of credit that Massachusetts taxpayers may claim for a qualified Massachusetts project is allocated by the DHCD and is subject to an annual cap of $125 million through 2024, 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>The LIHTC is a transferable, non-refundable, five year credit, which may be carried forward for up to 5 years. <BR><BR>The credit for the donation of property is a non-refundable, single year tax credit for corporate excise and personal income. 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><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="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section6i" target="_blank">c. 62, § 6I (a)</a>
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