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.
While the original cap on annual credits was $5 million, this has been increased to $10 million for the period January 1, 2015 to December 31, 2023 for the amount of credit that may be awarded under the program in a calendar year. Before 2017, the cap is part of an over-all $25 million ($30 million for 2015 and 2016) 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: St. 2010, c. 240; M.G.L. c. 40V; G.L. c. 62, § 6(q).
Personal Income Tax
Credits Against Tax
1.619
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 <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section6" target="_blank">G.L. c. 62, § 6</a> and <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section38BB" target="_blank">section 38BB to G.L. c. 63</a>. 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 <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleVII/Chapter40V/Section1" target="_blank">G.L. c. 40V, § 1</a>.<BR><BR>While the original cap on annual credits was $5 million, this has been increased to $10 million for the period January 1, 2015 to December 31, 2023 for the amount of credit that may be awarded under the program in a calendar year. Before 2017, the cap is part of an over-all $25 million ($30 million for 2015 and 2016) cap imposed on the Economic Development Incentive Program (EDIP) credit authorized pursuant to <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section6" target="_blank">G.L. c. 62 § 6(g)</a> and <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section38N" target="_blank">c. 63, 38N</a>.<BR> <BR>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.
<a href="https://malegislature.gov/Laws/SessionLaws/Acts/2010/Chapter240" target="_blank">St. 2010, c. 240</a>; <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleVII/Chapter40V" target="_blank">M.G.L. c. 40V</a>; <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section6" target="_blank">G.L. c. 62, § 6(q)</a>.
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1.0
1.0
1.0
1.0
