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State Tax Credits News Briefs - July 2014

The Oklahoma Affordable Housing Tax Incentive Act of 2014 (S.B. 2128) was signed by Gov. Mary Fallin on June 3. The bill enacts the state low-income housing tax credit (LIHTC) for qualifying developments. A qualifying development is a low-income building located in a county with a population of less than 150,000. The LIHTC will have an annual cap of $4 million allocated over a 10-year period. The transaction cap is 100 percent of the federal LIHTC, with a dollar for dollar match of all federal credits allocated. The program will also undergo a review every five years by a committee appointed by the governor, President Pro Tempore of the Oklahoma State Senate and the Speaker of the Oklahoma House of Representatives. The Oklahoma Affordable Housing Tax Incentive Act of 2014 becomes effective Jan. 1, 2015. S.B. 2128 is available at www.taxcredithousing.com.

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Iowa House File 2453 was signed by Gov. Terry Branstad May 27, rewriting the state’s historic tax credit (HTC) program. The bill creates a new point system for awarding the state HTC. Projects must be shovel-ready to receive a tax credit. Previously, tax credits had been awarded by a lottery, with developers submitting applications even if their project was not shovel-ready. The new point system will determine which projects are to receive awards based on readiness, the timeline for construction and the financial backing of a project. The bill retained the annual HTC cap of $45 million. More information can be found at the Iowa Legislature.

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On May 12, a public hearing was held to increase the HTC in Calvert County, Md. The 2013 Maryland General Assembly voted to increase the maximum HTC that a municipal or county government can award from 10 percent to 25 percent for qualified expenditures. The tax credit applies to property taxes for work done on the exterior or foundation of historic properties. The Calvert county board of commissioners requested the increase in the tax credit to match the amount allowed for the state in S.B. 144.

Journal Category:

State Tax Credits

Authors:

Novogradac

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