State LIHTC Program Descriptions

Alabama (Proposed)

For applications submitted on or after Jan. 1, 2025, through Sept. 30, 2027.

Arizona

For properties placed in service June 30, 2022, through Dec. 31, 2028.

Jeff Nishita

Jeanne Redondo

California

2023 9% and 4% Application Forms

Request for state tax credits should be included with federal LIHTC application.

Listed on state website

• State tax credit recipients must first receive federal tax credits, or qualify under IRC Section 42(h)(4)(b). State Farmworker Credits are exempt from this requirement.
• Special needs developments within a QCT or DDA can request state credits. CTCAC designates all special needs housing types as within DDAs.
• All remaining tax credits will be allocated to federal tax credit recipients in exchange for an “equivalent” amount of federal credits at the discretion of the Executive Director.

30% of eligible basis for 9% credits

Jeff Nishita

Nancee Robles
Executive Director, California Tax Credit Allocation Committee

Colorado

2019 Colorado Revised Statues Section 39-22-2102

2019 Colorado Department of Revenue Private Letter Ruling PLR 19-004 

2018 Colorado Revised Statutes Section 39-22-2102

2018 Colorado Revised Statutes Section 36-22-2101 

2014 Colorado Revised Statutes Section 39-22-2101

2013 Colorado Revised Statutes Section 39-22-2101

LIHTC Application

2023-2024 QAP

Allocation is based on the following principles, including:

1. rental housing developments serving the lowest-income tenants for the longest period,
2. properties in a Qualified Census Tract (QCT) which contribute to a Concerted Community Revitalization Plan,
3. assisting a diverse population,
4. proximity to public transportation,
5. energy efficiency,
6. a variety of applicants, including affordable housing, for-profit and nonprofit,
7. maximum allowable density when feasible.

The state also identified the following priorities:

1. individuals experiencing homelessness,
2. serving people with special needs,
3. developments in counties outside the Denver metro area with a population of 180,000 or less.

Granted in conjunction with a federal 4% LIHTC. Credits can also be allocated to counties impacted by federally declared disasters and not count against the annual state cap if those credits are used to leverage state and federal natural disaster funds. Program sunsets Dec. 31, 2031.

Jeff Nishita

Kathryn Grosscup

Connecticut

Request for state tax credits should be included with federal LIHTC application

9% LIHTC: Application rounds are typically held each year in the fall.

4% LIHTC: Because 4% LIHTC are awarded on a non-competitive basis, developers may apply for 4% LIHTC at any time.

Applications are ranked based on the following criteria:

1. readiness to proceed,
2. type of housing program,
3. target population,
4. administrative capability of the applicant,
5. use of funds in urban areas and impact on neighborhood revitalization,
6. extent to which tax credit funds are leveraged by other funds.

Developers may apply for the LIHTCs by submitting a CHFA/DOH Consolidated Application through a SharePoint website.  

Charlie Rhuda, CPA

Tina Brockett
Interim Managing Director of Multifamily

D.C.

Online Application

Multi-stage process:

1. letter of Interest,
2. board eligibility resolution,
3. conditional underwriting approval/final bond resolution,
4. pre-closing documentation.

Selection criteria:

1. development team capacity and readiness to close transaction,
2. project location and site characteristics,
3. target market, occupancy and rent restrictions,
4. financial feasibility and financing structure,
5. resident services, participation by minority and disadvantaged businesses.

D.C. low-income housing tax credits will not be allowed for a tax year if an owner of a qualified development does not submit a copy of the eligibility statement issued by the D.C. Department of Housing and Community Development with respect to the qualified development at the time of the filing of the owner’s state tax return. If a portion of the federal low-income housing tax credits are required to be recaptured, the DC low-income housing tax credit will also be recaptured in an amount equal to the amount of D.C. low-income housing tax credits previously claimed multiplied by a fraction, the numerator of which is the amount of recaptured federal low-income housing tax credits, and the denominator of which is the amount of federal low-income housing tax credits previously claimed.

Dirk Wallace

Drew Hubbard
(202) 442-7200

Georgia

Application

Request for state tax credits should be included with federal LIHTC application.

Brad Elphick, CPA

Georgia Department of Community Affairs
(404) 679-4840
Email

Hawaii

S.B. 2833; H.B. 2304 

Refer to the HHFDC website at www.hawaii.gov/dbedt/hhfdc for the most current information.

Complete and accepted applications shall then be evaluated in accordance with the allocation plan to determine the development’s rank in relation to other developments in the evaluation. Developments receiving the highest ranking shall then be further evaluated to determine the minimum amount of LIHTC required to make the development feasible. The amount of LIHTC reserved or allocated to a particular development will be limited to the minimum amount the HHFDC, in its sole discretion, deems necessary to make the development feasible.

HHFDC will accept the completed application with exhibits in person, by mail via the United States Postal Service (USPS), and via email. Refer to the HHFDC website at www.hawaii.gov/dbedt/hhfdc for more information.

The deadline is normally announced in December of each year on the HHFDC website. Refer to the HHFDC website at www.hawaii.gov/dbedt/hhfdc for the most current information.

Five years.

Jon Adkins

David T. Oi
[email protected]
808-587-0574

Illinois

Application

The first step in applying for IAHTC is to register for the online Multifamily Portal and submit a Preliminary Project Assessment (PPA). The PPA addresses development concept, design, location and proposed tenant population. PPAs are either approved or denied by IHDA and are accepted on a rolling basis for IAHTC. Approval of a PPA does not guarantee an allocation of tax credits or any other IHDA resources.

75.5% of annual allocation goes to the Illinois Housing Development Authority, 24.5% goes to City of Chicago Department of Housing and Economic Development.

50% of the donations.

The Illinois Affordable Housing Tax Credit (IAHTC) encourages private investment in affordable housing by providing donors of qualified donations with a one-time tax credit on their Illinois state income tax equal to 50% of the value of the donation. For all but employer-assisted developments, 25% of units in each development for rental projects and 100% of units in ownership projects must serve person with income at 60% of AMI or lower. The donor can choose to transfer the credits to the development, which creates additional development financing through syndication of the credits.

The credit expires Dec. 31, 2026.

Expanded Donation Form

Stacey Stewart

Kathy Terry

Indiana

Application for state credit is in one application to request all sources (tax-exempt bonds, 4% LIHTCs and the state credit).

$30 million

$25 million

Available for 40% to 100% of federal allocation amount of 4% LIHTC. Taken over five taxable years beginning with the year in which any amount of the federal tax credit for the project is first claimed by the taxpayer. Can be carried forward up to nine years. IHCDA will divide the state into five funding regions, each of which will receive 20% of the credit: Northwest, Northeast, Central, Southwest and Southeast.

Credit for state fiscal years beginning after June 30, 2023, and ending before July 1, 2028.

Dirk Wallace

Hayden Wiesinger

Kansas

For taxable years beginning after Dec. 31, 2022.

Alissa Ice
(785) 217-2036

Maine

• at least 30% of credit to be allocated to the construction of adaptive reuse of buildings for new rental units of senior housing; and
• at least 20% of the credits to be allocated to the construction or adaptive reuse of buildings for new rental units of multifamily affordable rental housing in rural areas.

• either the construction of one or more new buildings or the adaptive reuse of one or more previously constructed buildings that haven’t been previously used for residential purposes,
• subject to a restrictive covenant requiring an income mix in which at least 60% of the units are restricted to households with income at or below 50% area median income,
• eligible for the 30% present-value credit as described in Internal Revenue Code Section 42(h)(4)(B).

Credit also can be equal to 50% of the qualified basis of an affordable housing project that incurs not less than $100,000 includible in eligible basis in the construction or rehabilitation of an affordable housing project for which a federal LIHTC is not claimed for those expenditures. No more than $500,000 in credit may be allocated for a single project under this provision and no more than 20% of the credits an any calendar year may be allocated to these properties.
All properties receiving the credit must remain credit-qualified affordable housing project for 45 years from the date it is placed in service.
Entire credit must be taken in the later of the first taxable year in which the federal LIHTC is claimed or the first taxable year for which the project has an allocation of the state LIHTC.

Massachusetts

Request for state tax credits should be included with federal LIHTC application.

• Conformance with DHCD funding priorities,
• strength of overall concept,
• strength of development team,
• demonstrated need for project in the target neighborhood,
• suitable site and design,
• appropriate scope of rehabilitation or construction,
• appropriate total development cost for properties included in proposal,
• financial viability of the project,
• degree of local support, including local funding commitments,
• evidence of readiness to proceed,
• evidence of satisfactory progress on projects previously funded with DHCD resources,
• incorporation of sustainable development.

DHCD has authority to allocate up to $40 million each year in state housing credits through Jan. 1, 2025.

The maximum amount awarded for a new assisted living project is $5 million. The maximum for all others is $10 million. DHCD may award more than $10 million on a case-by-case basis for larger developments. The maximum eligible basis per unit in tax credit developments is $250,000 per unit within the Boston metro area and $200,000 per unit outside that region. The allowable eligible basis in the preservation set-aside is $175,000 per assisted unit.

Charles Rhuda

(617) 573-1300

Minnesota

$9,900,000

Credit is for 85% of the amount a taxpayer contributes to the state contribution fund, with a minimum contribution of $1,000 and a maximum of $2 million. Funds can be used for gap financing for new construction, acquisition, rehabilitation, demolition or removal of existing structures, construction financing, permanent financing, interest rate reduction and refinancing. The program also has set-asides for single-family housing, housing in a township or city with a population of 2,500 or less that is outside of the metro area and housing for people earning 50% or less of area median income.

Krissi Mills, SHTC Program Manager

Mississippi (Proposed)

Missouri

Revised Statutes of Missouri Chapter 135

Current Application Information
 

Request for state tax credits should be included with federal LIHTC application.

The credit is allocated based on the following:

1. geographic region,
2. development characteristics,
3. market characteristics,
4. development team characteristics,
5. feasibility,
6. community impact.

70% of federal amount

70% for 9% transactions and a $4 million per year cap on 4% transaction. This cannot exceed the amount of federal LIHTC.

The "accelerated method" matches the federal credit in the first five years and spreads the rest across the last five years.

Mike Kressig

Margaret Murphy
(816) 759-7262
[email protected]

Nebraska

A development must be placed in service after Jan. 1, 2018, to qualify for the state LIHTC.

Nebraska affordable housing tax credits may only be claimed for taxable years beginning on or after Jan.1, 2019.

Generally, match federal LIHTC awards.

Total state LIHTC allocations are limited to the amount of the federal LIHTC available

Same as federal LIHTC allocation.

Renee Beaver

Sara Tichota
LIHTC Allocation Manager
[email protected]

Nevada

S.B. 448

Submit an application on a form prescribed by the Division. There are two methods of obtaining a LIHTC allocation under a QAP: 1) through the competitive application process; and 2) tax-exempt bond financing.

The Division shall: (a) Review each application for a certificate of eligibility for transferable tax credits submitted pursuant to subsection 2 and any supporting documents (b) Determine the amount of transferable tax credits for which the project may be eligible (c) Reserve the amount of transferable tax credits for which each project is determined to be eligible pursuant to paragraph

$10 million 

9% and 4% credits. No credits issued for a fiscal year beginning on or after July 1, 2023.

Jeff Nishita

Mark Licea LIHTC Administration Officer
Phone: (702) 486-5980
Email: [email protected]

New Jersey

A.B. 4

Cap for all Aspire credits is $1.1 billion over six years. 

Developments using the federal LIHTC are eligible for state credits. Property must be in eligible incentive location, which includes Planning Area 1, Aviation District, Port District, Planning Area 2 or any designated center that is within a half-mile of a rail transit station nor height frequency bus stop.

New Mexico

House Taxation And Revenue Committee Substitute For House Bills 410, 582, 844 and 1086

To receive a tax credit voucher, applicants must make a donation of land, buildings, materials, cash (and cash equivalents) or services, which may be used to acquire land, building acquisition, construction, remodeling, improvement, rehabilitation, conversion or weatherization throughout the state. Minimum donation is $200, maximum donation is $2 million.

Applications are scored based on the following selection criteria:

1. leverage of other public and private funds,
2. need and market for the proposed affordable housing property or activity,
3. readiness to proceed,
4. strength and experience of the sponsor, development team and management entity,
5. properties which will produce affordable homeownership units,
6. properties serving the lowest income households appropriate for the type of affordable housing property or activity.

Amount equal to $1.85 per capita, adjusted for inflation. Estimate is that amount would average $4 million to $5 million annually.

The credit is worth up to 50% of the value of donations for affordable housing developments approved by the New Mexico Mortgage Finance Authority (MFA) or for donations made directly to the New Mexico Affordable Housing Charitable Trust.

MFA awards New Mexico Affordable Housing Tax Credit reservations on a first come, first served basis.

New Mexico Affordable Housing Tax Credit Program Notice of Funding Availability; MFA Design Standards; Rental Design Standards; Rental Multifamily State Tax Check List; Tax Credit Transfer; Fiscal Impact; Tax Credit Voucher; Schedules; Donor List

Jeff Nishita

Justin Carmona
Program Coordinator, New Mexico Mortgage Finance Authority
Email
505.767.2211

New York

Apply online via the Community Development Online System for federal and state credits.

Complete applications must be submitted at least 60 days before the proposed construction start date on a form approved by DHCR and will be accepted and processed throughout the calendar year.

The state LIHTC allocation is not calendar year-specific.

Applications are scored based on the following selection criteria:

1. community impact and revitalization,
2. financial leveraging,
3. sponsor characteristics,
4. green building,
5. income mixture,
6. fully accessible and adapted, move-in ready,
7. proposal readiness,
8. persons with special needs,
9. marketing plan/public assistance,
10. individuals with children,
11. nonprofit participation,
12. historic nature of property,
13. cost effectiveness,
14. housing opportunity properties,
15. minority- and women-owned business enterprise participation.

$88 million.

SLIHC assisted units must serve households whose incomes are at or below 90%  percent of the area median income (vs. the 60%  percent standard of the federal program).

Capital Programs Manual (does not apply to bond-financed transactions); Section 2040.14 New York State Low-Income Housing Tax Credit Program; Boilerplate Regulatory Agreement

Charlie Rhuda, CPA

Arnon Adler
New York State Division of Housing and Community Renewal
(518) 486-5044

North Carolina (Proposed)

Credit equal to a percentage of property’s qualified basis if it is allocated a federal LIHTC. No credit is allowed for properties receiving tax-exempt bonds. Percentage of basis for which credit is allowed is a sliding scale, based on what percentage of qualified residential units are affordable to households earning various percentages of the AMI.

No credits may be allocated on or after Jan. 1, 2027.

Ohio

Available for properties placed in service on or after July 1, 2023, and for which credits are reserved before July 1, 2027.

Oklahoma

Application information

Request for state tax credits should be included with federal LIHTC application

The following selection criteria are used to rank applications:

1. income targeting,
2. term of affordability,
3. development location and housing characteristics,
4. tenant/targeted populations,
5. tenant ownership,
6. preservation of 15-year-old affordable housing,
7. energy efficiency,
8. historic nature,
9. negative points,
10. tie-breaker procedure.

The Oklahoma Affordable Housing Act shall undergo a review every five years by a committee of nine persons, to be appointed by various state officials.

Nick Hoehn, CPA

Danette Carr
Oklahoma Housing Finance Agency
405.419.8136

Pennsylvania

Rhode Island

South Carolina

Building must be placed in service after Jan. 1, 2020, and before Dec. 31, 2030.

Application must report to SC Housing why the state credit is necessary to undertake the development or how the credit will benefit tenants.

SC Housing will determine the amount of equity used for state tax credit underwriting based on the applicant/owner representations, commitment letters and inputs from syndicators.

Eligibility statements will include the amount of state LIHTCs.

Properties using bonds and 4% LIHTCs are presumptively eligible for the state tax credit. For 9% LIHTCs, developers may make a case for why the state credit is needed.

From Section (2)(a) of H. 3998:

If under Section 42 of the Internal Revenue Code of 1986, as amended, a portion of any federal housing tax credit taken on a project is required to be recaptured, the taxpayer claiming any state tax credit with respect to such project is also required to recapture a portion of any state tax credit authorized by this section. The state recapture amount is equal to the proportion of the state tax credit claimed by the taxpayer that equals the proportion the federal recapture amount bears to the original federal housing tax credit amount subject to recapture.

Chris Key

Chris McMillan
Multifamily Finance and Bonds Manager
803.896.9196 

Texas

$25 million plus any carryover from a previous year, split evenly between properties financed with tax-exempt bonds and 4% LIHTCs and those receiving 9% LIHTCs.

Available for properties that have received a federal LIHTC award for up to the amount of the federal award at the minimum amount necessary for financial feasibility.

Same as federal credit.

Utah

From the 2023 QAP

1. Projects that wish to use Pool I state credit to reduce rents are required to first complete their application without reliance on state credits. Applicants will then complete the state credit section to reduce rents. In effort to encourage the creation of units at or below 30% of area median income, UHC will award an additional amount of state credits to those projects which reduce rents on up to 10 units to 30% area median income or below. The additional amount of state credit will be up to 20% more than the amount of credit necessary to achieve the rent reduction on a one-to-one basis of debt reduction. Example: The application spreadsheet determines that a project requires $100,000 of state credits in order to achieve rent reductions on 10 units. Ten of these units will be reduced to 30% of area median income (not including the five homeless units for which points were awarded). UHC will calculate the amount of credit necessary to reduce rents on those 10 to 30% of area median income. The project will be eligible for an award of state credit in that amount, plus a boost of 20%, in addition to the state Credit required to reduce rents in other rent tiers.

2.Projects that will be financed with tax-exempt bond and 4% (noncompetitive) LIHTCs may request state credits in a credit equivalent amount of up to $500,000 for gap funding. The applicant must commit a match of deferred developer fee. These credits will be drawn from Pool I.

3. In the event the set-aside of Pool I state credits has been exhausted, UHC may, at its sole discretion, allocate state credits from Pool II to fully fund Pool I requests.

4. State credits requested subsequently to fund financing shortfalls must demonstrate a dollar-for-dollar leveraging (including developer fees) of the proceeds of state credits with additional financial resources with finance terms at or below the applicable federal rates (AFR) published by the IRS. These credits will be drawn from Pool I.

5. The applicant must demonstrate that other local, state, federal or private resources (including deferral of fees or equity contributions by the developer) have been approached and report the results of such efforts when applying for state credits.

6. State credits are not to be used to fund increases in developer or any related party fees.

7. No project may receive an allocation of more than 25% of the balance of Pool I credits available Jan. 1.

• Application fee due with application,
• reservations notification comes approximately 90 days from application deadline.

State Credit Pool I: UHC has set aside about 37% of its annual state credits ceiling amount for allocation to projects that combine federal and state credits. State Credit Pool II: UHC has set aside about 63% of its annual state credits ceiling amount for allocation to permanent supportive housing (PSH) projects only. No project may receive an allocation of more than 25 percent of the State Credit Pool II.

State Credit Pool II: UHC has set aside about 63% of its annual state credits ceiling amount for allocation to permanent supportive housing (PSH) projects only. No project may receive an allocation of more than 25% of the state credit Pool II.

Proposals are scored on the following criteria:

1. lower income targeting,
2. property location,
3. property characteristics,
4. applicant characteristics,
5. tenant populations with special housing needs,
6. service to tenants with public housing assistance weight,
7. housing needs characteristics,
8. cost and credit efficiency,
9. tiebreakers.

The tax credit shall be in an amount equal to the greater of the amount of:

• the federal LIHTC to which the taxpayer is allowed during that year multiplied by the percentage specified in an allocation certificate issued by the Utah Housing Corporation; or
• the tax credit specified in the special low-income housing tax credit certificate that the housing sponsor issues to the taxpayer as provided in Subsection (2)(c).

Jon Adkins

Robyn Cordova
Multifamily Credit Analyst
801.902.8246

Vermont

Application Information

Request for state tax credits should be included with federal LIHTC application. Before submitting application, the developer must meet with Vermont Housing Finance Agency staff, obtain site control and meet with other funding agencies.

Projects with bond credit receive preference, in addition to preferences to:

• targeting a minimum of 15% of the LIHTC units as housing with services to households who are homeless or at risk of homelessness,
• creating net new LIHTC units in growing communities (based on recent Census data),
• rehabilitation of existing affordable housing,
• demonstrating innovation in cost and scarce resource efficiencies,
• the degree to which a project exceeds thresholds listed in Section 2 of the QAP.

A taxpayer who makes an eligible cash contribution shall be entitled to claim against the taxpayer’s individual income, corporate income, franchise tax or insurance premium tax a credit in an amount specified on the taxpayer’s credit certificate.

A taxpayer claiming affordable housing tax credits shall submit with each return on which such credit is claimed a copy of the allocating agency’s credit allocation to the affordable housing development and the taxpayer’s credit certificate. 

15-year compliance period (same as federal)

Fact Sheet; Affordable Housing Credit Summary

Charlie Rhuda

Seth Leonard
Managing Director of Community Development
802-652-3403
[email protected]

Virginia

Wisconsin

Information available at WHEDA HTC Allocating page

Set asides as follows:

• 25% rural,
• 20% small urban areas,
• 55% balance of state.

$1.4 million

Complements the federal 4% LIHTC.

Nathan Simms 
Director-Commercial Lending
[email protected]