North Carolina Legislation Would Resurrect State LIHTC that Expired in 2015

Wednesday, March 1, 2023 - 12:45PM

Legislation in the North Carolina House of Representatives would reinstate the state low-income housing tax credit (LIHTC) that expired in 2015. H.B. 208 would bring back a state credit for taxpayers that receive a federal LIHTC allocation. The state LIHTC would have a sliding scale for a percentage of basis for which the state credit is allowed, based on the type of set-aside elected by the development. The state LIHTC would not be available to bond-financed properties. The North Carolina LIHTC would be effective for taxable years beginning on or after Jan. 1, 2023, and would sunset Jan. 1, 2027. North Carolina previously had a state LIHTC from 2003 through 2015. Similar legislation was introduced in 2021.

The interaction of state and federal LIHTC equity will be a topic at the Novogradac 2023 Affordable Housing Conference, April 27-28 in San Francisco.

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