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North Carolina Legislation Would Reinstate State LIHTC Incentive

Wednesday, June 1, 2022 - 10:00AM

Legislation in the North Carolina House of Representatives would reinstate the state low-income housing tax credit (LIHTC) incentive. H.B. 1124 would create a state LIHTC equal to the federal allocation amount with a sliding percentage of the basis for which the credit is allowed, based on the percentage of units affordable to various income levels. Any carryover allocation would receive credits as a nontaxable loan generated by transferring the credit to the state housing finance agency. A bill introduced in the Senate in 2021 would also reinstate the North Carolina LIHTC, but with different provisions. The state LIHTC expired in 2015.

The Novogradac Introduction to Low-Income Housing Tax Credits booklet provides an introduction to the incentive, looking at the background and structure of the LIHTC.

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