Missouri Bill Would Reduce Cap for State LIHTC Allocation

Friday, January 17, 2020 - 9:15AM

The Missouri state low-income housing tax credit (LIHTC) annual cap would be the lesser of 72.5 percent of the federal allocation or $123 million, under legislation introduced in the state Senate. S.B. 549 would reduce the annual cap from 100 percent of the federal LIHTC awards and would also reduce the limit of 4 percent LIHTCs awarded to bond-finance properties from $6 million to $4 million. The bill would establish a pilot program under which state LIHTCs could be transferred, sold or assigned to a third party if authorized by the Missouri Housing Development Commission. Similar bills were introduced in the past two sessions of the Missouri Legislature, although no state LIHTCs have been allocated since 2017.

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