Hawaii Bill Would Extend LIHTC, Clarify How Partners Claim Credits

Tuesday, May 4, 2021 - 4:00pm

Legislation in Hawaii that would extend the sunset date of the state low-income housing tax credit (LIHTC) to 2027 and clarify how partners can claim the LIHTC is on the desk of Gov. David Ige. H.B. 80 would extend the sunset date of the state LIHTC to Dec. 31, 2027, and clarify when and how taxpayer partners may claim the LIHTC on state taxes, regardless of whether the partner is deemed to be a partner for federal income tax purposes. The legislation requires an IRS Form 8609 to claim the credit and provisions would be applicable after Dec. 31, 2020.

The Novogradac Low-Income Housing Tax Credit Handbook is an essential resource for affordable housing and includes information on the interaction between federal and state LIHTC incentives.