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Alabama Governor Signs Bill Creating State LIHTC With $5 Million Annual Cap

Friday, May 10, 2024 - 10:51AM

Alabama Gov. Kay Ivey signed legislation Thursday creating a state low-income housing tax credit (LIHTC) for properties that receive federal 4% LIHTCs. H.B. 346 creates the Alabama Workforce Housing Tax Credit, with a $5 million annual statewide cap and a $2 million annual project cap. For each award cycle, 20% to 25% of the cap will be awarded to rural properties, with the remainder awarded to qualified projects without geographic limitation. The credit will be effective Jan. 1, 2025, with a sunset application date of Sept. 30, 2027. Alabama becomes the 30th state with a LIHTC (plus Washington, D.C.).

The Novogradac Introduction to Low-Income Housing Tax Credits booklet provides a brief, substantive look at the federal (and state) LIHTC.

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