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South Carolina Legislation Would Pair State LIHTC With Only 4% Federal Credits, Establish Annual Cap

Friday, March 4, 2022 - 8:15AM

Legislation introduced in the South Carolina House of Representatives would change the limit of private activity bonds for housing, which can be paired with the 4% federal low-income housing tax credit (LIHTC) and state tax LIHTC. H.R. 5075 would also cap the state credit at $15 million per year and require the state to create a plan to assign bond volume among permitted uses. South Carolina recently paused its allocation of state credits due to the volume of interest and the impact on the state’s general fund.

The use of state credits and other gap funding will be discussed at the Novogradac 2022 Affordable Housing Conference, April 28-29 in San Francisco.

March 7, 2022: Updates to clarify details in legislation.

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