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Texas Governor Signs Bill Creating State LIHTC With $25 Million Annual Cap

Thursday, July 6, 2023 - 11:30AM

Texas will have a state low-income housing tax credit (LIHTC) beginning Jan. 1, 2024, after Gov. Greg Abbott recently signed enacting legislation. H.B. 1058 creates a credit for up to the amount of the federal LIHTC allocation amount for each property, with an annual statewide cap of $25 million. The state LIHTC will be split evenly between properties receiving 9% LIHTCs and 4% LIHTCs and credits can first be claimed in tax reports originally due on or after Jan. 1, 2026. The state credit has a sunset date of Dec. 31, 2029.

The Novogradac Introduction to Low-Income Housing Tax Credits booklet provides an introduction to the LIHTC incentive on both the federal and state level.

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