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State LIHTC Program Descriptions

Legend

  State LIHTC Program Enacted
  State LIHTC Program Proposed
  No Current State LIHTC Program

The links in the map above take users to the program descriptions below, which is maintained by Novogradac & Company. We will update this list as new information becomes available. If you would like to correct or update the information listed above please email [email protected].

 

Arizona

Program Affordable Housing Tax Credit
Administering Agency Arizona Department of Housing
Enacting Legislation S.B. 1124
Amending Legislation  
Related Statutes and Documents  
Application

 

Application Process

 

Application Deadline(s)  
Allocation Process/Priorities  
Annual State Cap $4 million. Half to rural projects, half to metro projects.
Transaction Cap  
Credit Description Credit worth at least 50% of the federal credit for each year during the federal credit period. Credit can be carried forward five years. Applications must be for $500,000 to $1 million. Rural projects may use the state credit with 9% and 4% federal funding, but metro projects can only use state credits with federal 4% LIHTCs.
How To Claim the Credit  
Bifurcated from Federal LIHTC?  
Credit Period (Compliance)  
Recapture Credit recaptured is subject to recapture in proportional amount from all taxpayers who claimed the credit. 
Other

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

Novogradac Contact

Jeff Nishita

State Contact

Jeanne Redondo

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Arkansas

Program Arkansas State Housing Credit
Administering Agency Arkansas Development Finance Authority
Enacting Legislation H.B. 2197
Amending Legislation H.B. 2197-H2, H.B. 2197-H3
Related Statutes and Documents A.C.A. Section 26-51-17
Application

2022 Application

Application Process

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

Application Deadline(s) 4:30 p.m. the first Monday of March 
Allocation Process/Priorities
  • Top priority are developments located in counties that are assigned to tier 4 or tier 3 of the four job-creation incentives tiers of the Arkansas Economic Development Commission. 
  • If there is a shortage of state credits, credits will be awarded to developments located within qualified census tracts (QCTs).
  • If there are not enough eligible developments in QCTs, state credits will be awarded to developments located within counties that have not received a federal LIHTC award in the previous three years.
  • If there is a shortage of credits, credits are then awarded to developments anywhere in the state.
Annual State Cap $250,000 per year
Transaction Cap 20% of the federal award
Credit Description  
How To Claim the Credit Submit Arkansas Individual Income Tax Schedule of Tax Credits AR1000TC to claim the credits
Bifurcated from Federal LIHTC? Yes
Credit Period (Compliance) 10 years (15 years)
Recapture Same as federal
Other

 

Novogradac Contact

Brad Elphick

State Contact

John Blackwell, Director of Tax Credits

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California

Program California State Low Income Housing Tax Credit
Administering Agency California Tax Credit Allocation Agency
Enacting Legislation Chapter 658, Statutes of 1987
Amending Legislation A.B. 1903; A.B. 2846; S.B. 713; S.B. 585;  A.B. 952; S.B. 837; A.B. 101
Related Statutes and Documents California Revenue and Taxation Code Section 23610.5California Code of Regulations Title 4, Division 17, Chapter 1 June 17, 2020 
Application

2023 9% and 4% Application Forms

Application Process

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

Application Deadline(s)

Listed on state website

Allocation Process/Priorities
  • 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.
Annual State Cap $500 million for new construction projects financed by PABs, subject to appropriation by state Legislature, plus $70 million annually (adjusted for inflation, was $117,721,696 in 2022), with 85% going to 9% LIHTC developments, remainder to PAB-financed developments.
Transaction Cap

30% of eligible basis for 9% credits

13% of eligible basis for 4% 3credits
Credit Description 9% and 4%
How To Claim the Credit Not Available
Bifurcated from Federal LIHTC? Yes
Credit Period (Compliance) 4 years
Recapture  
Other Application Information: FAQCalifornia Code of Regulations Title 4, Division 17, Chapter 1CTCAC Allocation Process for Set Asides and Geographic Regions; S.B. 837: The bill also creates a new authority to certificate state credits, meaning they can be sold outright to a state investor rather than requiring the investor to be a partner. 
Novogradac Contact

Jeff Nishita

State Contact

Nancee Robles
Executive Director, California Tax Credit Allocation Committee

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Colorado

Program Colorado State Affordable Housing Tax Credit
Administering Agency Colorado Housing and Finance Authority
Enacting Legislation H.B. 14-1017
Amending Legislation H.B. 1465; SB 18-007; H.B. 1051
Related Statutes and Documents

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

Application

LIHTC Application

 

Application Process

2023-2024 QAP

Application Deadline(s)  
Allocation Process/Priorities

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.
Annual State Cap $10 million
Transaction Cap  
Credit Description

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.

How To Claim the Credit Owners of qualified developments and tax credit recipients should attach the allocation certificate issued by the Colorado Housing and Finance Authority and the owner’s certification as to the allocation of the credit among the qualified taxpayers having ownership in the development to their state income tax returns. The credit is claimed evenly over six years, beginning with the year the development is first placed in service.
Bifurcated from Federal LIHTC? Yes
Credit Period (Compliance) Six years (15 years).
Recapture Same as federal
Other Letter of Information
Novogradac Contact

Jeff Nishita

State Contact

Kathryn Grosscup

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Connecticut

Program Connecticut Housing Tax Credit Contribution Program
Administering Agency Connecticut Housing Finance Authority
Enacting Legislation Bill No. 5955
Amending Legislation  
Related Statutes and Documents Connecticut General Statutes Section 8-395
Application Application Process
Application Process

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

Application Deadline(s)

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.

Allocation Process/Priorities

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.
Annual State Cap Up to $10 million, with $2 million set aside for supportive housing and $1 million set aside for workforce housing as defined by CHFA.
Transaction Cap $500,000 per funding year per applicant; $500,000 per funding year per development.
Credit Description A nonprofit corporation can receive up to $500,000 annually in state tax credits which can then be sold to state business firms in return for cash contributions to the nonprofit corporation’s housing program. Eligible business firms may be able to claim a charitable deduction for their contribution.
How To Claim the Credit A completed CHFA-DOH Consolidated Application for Housing Development (ConApp) must be submitted by the published deadline.  
Bifurcated from Federal LIHTC? Yes
Credit Period (Compliance) 10 years (15 years).
Recapture Credit recipients must submit quarterly progress reports to CHFA.  Housing programs that do not meet their development schedule and completion dates can forfeit funds contributed by business firms to CHFA and the HTCC credits will be returned to CHFA. 
Other

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

Novogradac Contact

Charlie Rhuda, CPA

State Contact

Tina Brockett
Interim Managing Director of Multifamily

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D.C.

Program District of Columbia Low-Income Housing Tax Credit
Administering Agency District of Columbia Housing Finance Agency
Enacting Legislation Act 20-449
Amending Legislation  
Related Statutes and Documents District of Columbia Code Title 47, Chapter 48
Application

Online Application

Application Process

Multi-stage process:

  1. letter of Interest,
  2. board eligibility resolution,
  3. conditional underwriting approval/final bond resolution,
  4. pre-closing documentation.
Application Deadline(s)  
Allocation Process/Priorities

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.
Annual State Cap  
Transaction Cap  
Credit Description Credit worth up to 25% of the value of the federal LIHTC received.
How To Claim the Credit A qualified development must receive an eligibility statement from the DC Department of Housing and Community Development. The owner must then submit the eligibility statement each year with the filing of its state tax return.
Bifurcated from Federal LIHTC? All or any portion of the DC low-income housing tax credits may be transferred, sold, or assigned.
Credit Period (Compliance) Same as federal.
Recapture

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.

Other The D.C. Department of Housing and Community Development may charge a user fee equal to up to 1% of the D.C. low-income housing tax credits awarded to a qualified development.t.
Novogradac Contact

Dirk Wallace

State Contact

Drew Hubbard
(202) 442-7200

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Georgia

Program Georgia Housing Tax Credit Program
Administering Agency Georgia Department of Community Affairs
Enacting Legislation H.B. 272
Amending Legislation  
Related Statutes and Documents O.C.G.A. Section 48-7-29.6
Application

Application

Application Process

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

Application Deadline(s) 9%: 4 p.m. May 21
Allocation Process/Priorities The state credit will be automatically allocated on a dollar-for-dollar basis with the federal credit (for both the 9% and 4% federal credit).
Annual State Cap

 

Transaction Cap The annual state credit dollar amount will equal that of the federal credit.
Credit Description The annual state credit dollar amount will equal that of the federal credit.
How To Claim the Credit Form IT-HC
Bifurcated from Federal LIHTC? Yes
Credit Period (Compliance) Same as federal
Recapture Same as federal
Other The Final Report of the Georgia House Study Committee on Low-Income Housing Tax Credits
Novogradac Contact

Brad Elphick, CPA

State Contact 

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

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Hawaii

Program Hawaii Low-Income Housing Tax Credit
Administering Agency Hawaii Housing Finance and Development Corporation
Enacting Legislation H.B. 960
Amending Legislation

S.B. 2833H.B. 2304 

Related Statutes and Documents Hawaii Revenue Statute Section 235-110.8
Application

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.

Application Process

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.

Application Deadline(s)

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.

Allocation Process/Priorities The state credit will be allocated at 50% of the federal credit.
Annual State Cap

 

Transaction Cap 50% of the federal credit
Credit Description 9% and 4%
How To Claim the Credit Form N-586
Bifurcated from Federal LIHTC? Yes
Credit Period (Compliance)

Five years.

Recapture Same as federal
Other For the information on programs for the development of affordable housing in the State of Hawaii, visit Consolidated Application for Financing.
Novogradac Contact

Jon Adkins

State Contact

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

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Illinois

Program Illinois Affordable Housing Tax Credit
Administering Agency Illinois Housing Development Authority; Chicago Planning and Development Department
Enacting Legislation S.B. 1135
Amending Legislation H.B. 603; S.B. 2921; S.B. 2017
Related Statutes and Documents Illinois Administrative Code Section 47-2-355
Application

Application

Application Process

 

Application Deadline(s)  
Allocation Process/Priorities

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.

Annual State Cap

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.

Transaction Cap

50% of the donations.

Credit Description

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.

How To Claim the Credit For the taxable year in which the credit is claimed, the donor claiming the credit must attach a copy of the reservation letter issued by the housing agency detailing the amount of credits allocated to their Illinois income tax return.
Bifurcated from Federal LIHTC? Yes
Credit Period (Compliance) 1 year (1 year).
Recapture Only in the case of fraud
Other

Expanded Donation Form

Novogradac Contact

Stacey Stewart

State Contact

Kathy Terry

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Indiana

Program Affordable and Workforce Housing Tax Credit
Administering Agency Illinois Housing Development Authority
Enacting Legislation S.B. 382
Amending Legislation  
Related Statutes and Documents  
Application

 

Application Process

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

Application Deadline(s) July 3, 2023.
Allocation Process/Priorities

 

Annual State Cap

$30 million

Transaction Cap

$25 million

Credit Description

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.

How To Claim the Credit  
Bifurcated from Federal LIHTC? Yes
Credit Period (Compliance) Same as federal credit.
Recapture  
Other

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

Novogradac Contact

Dirk Wallace

State Contact

Hayden Wiesinger

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Kansas

Program Kansas Affordable Housing Tax Credit
Administering Agency Kansas Housing Resources Corporation
Enacting Legislation H.B. 2237
Amending Legislation  
Related Statutes and Documents  
Application

 

Application Process

 

Application Deadline(s) Three deadlines per year for 4% credits, in January, April and July. 9% LIHTC deadline in May.
Allocation Process/Priorities  
Annual State Cap Federal allocation amount.
Transaction Cap $8.5 million
Credit Description Credit equal to the federal LIHTC allocated or allowed by the KHRC. Could be carried forward up to 11 tax years following the tax year in which the allocation was made. Unused credits are not refundable.
How To Claim the Credit  
Bifurcated from Federal LIHTC?  
Credit Period (Compliance) 10 years (15 years)
Recapture Same as federal credit.
Other

For taxable years beginning after Dec. 31, 2022.

Novogradac Contact

 

State Contact

Alissa Ice
(785) 217-2036

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Maine

Program Maine Credit for Affordable Housing
Administering Agency Maine State Housing Authority
Enacting Legislation H.P. 1180 – L.D. 1645
Amending Legislation  
Related Statutes and Documents Chapter 35, Draft Chapter 35 for public comment May 2022
Application  
Application Process  
Application Deadline(s)  
Allocation Process/Priorities 10% of credits first available in any calendar year must be set aside to be allocated to qualified rural development preservation projects. The allocating agency shall seek to achieve the following targets over time:
  • 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.
Annual State Cap $10 million. Any amount not allocated can be carried forward, but total allocation may not exceed $15 million in any calendar year.
Transaction Cap  
Credit Description Matches the federal LIHTC allocation for properties that are:
  • 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.

How To Claim the Credit  
Bifurcated from Federal LIHTC?  
Credit Period (Compliance) 1 year (45 years).
Recapture  
Other Credit expires Dec. 31, 2028.
Novogradac Contact Charles Rhuda
State Contact Bill Glover
Manager of Lending
(207) 626-4634

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Massachusetts

Program Massachusetts Low-Income Housing Tax Credit
Administering Agency Massachusetts Housing and Economic Development
Enacting Legislation S.B. 1698
Amending Legislation H.B. 3492, Chapter 142 of the Acts of 2011; H.B. 4536; H.B. 5250
Related Statutes and Documents General Laws of Massachusetts, Chapter 63, Section 31H
Application Application
Application Process

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

Application Deadline(s)  
Allocation Process/Priorities
  • 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.
Annual State Cap

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

Transaction Cap

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.

Credit Description Combined total of federal and state LIHTC shall be the least amount necessary to ensure financial feasibility of a property, with the credit being allocated among as many projects as fiscally feasible.
How To Claim the Credit Visit the Mass OneStop+ website.
Bifurcated from Federal LIHTC? Yes
Credit Period (Compliance) 5 years (45 years).
Recapture Same as federal
Other State Tax Credit Program Certification
Novogradac Contact

Charles Rhuda

State Contact

(617) 573-1300

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Minnesota

Program Minnesota Affordable Housing Tax Credit
Administering Agency Minnesota Housing
Enacting Legislation H.F. 9
Amending Legislation  
Related Statutes and Documents Minnesota Statute 290.0683
Application  
Application Process  
Application Deadline(s)  
Allocation Process/Priorities  
Annual State Cap

$9,900,000

Transaction Cap  
Credit Description

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.

How To Claim the Credit Must be claimed in year the contribution is received by the account, but can be carried forward 10 years.
Bifurcated from Federal LIHTC?  
Credit Period (Compliance)  
Recapture None for taxpayer.
Other Sunset date Dec. 31, 2028.
Novogradac Contact  
State Contact

Krissi Mills, SHTC Program Manager

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Mississippi

Program Mississippi Affordable Housing Tax Credit
Administering Agency Mississippi Home Corporation
Enacting Legislation H.B. 1717
Amending Legislation  
Related Statutes and Documents  
Application  
Application Process  
Application Deadline(s)  
Allocation Process/Priorities  
Annual State Cap $4 million
Transaction Cap  
Credit Description State credit for up to the amount of the federal LIHTC.
How To Claim the Credit  
Bifurcated from Federal LIHTC?  
Credit Period (Compliance) 10 years (15 years)
Recapture If a portion of the federal credits are recaptured during the first 10 years after the project is placed in service, the state credits will be recaptured.
Other  
Novogradac Contact  
State Contact  

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Missouri

Program Missouri Low-Income Housing Tax Credit Program
Administering Agency Missouri Housing Development Commission
Enacting Legislation H.B. 960
Amending Legislation S.B. 28
Related Statutes and Documents

Revised Statutes of Missouri Chapter 135 (as of Aug. 28, 2016)

Revised Statutes of Missouri Chapter 135

Application

Current Application Information
 

Application Process

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

Application Deadline(s)  
Allocation Process/Priorities

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.
Annual State Cap

50% of federal amount

Transaction Cap

70% for 9% transactions and a $3 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.

Credit Description Any development that is eligible for the federal credit is eligible for the state credit. The state awards both 9%and 4%credits.
How To Claim the Credit Form MO-TC (2020)
Bifurcated from Federal LIHTC? Yes
Credit Period (Compliance) 10 years (10 years).
Recapture Same as federal except compliance period is 10 years.
Other  
Novogradac Contact

Mike Kressig

State Contact

Brianne Cabe
(816) 759-6696
[email protected]

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Nebraska

Program Nebraska Affordable Housing Tax Credit
Administering Agency Nebraska Investment Finance Authority
Enacting Legislation L.B. 884
Amending Legislation  
Related Statutes and Documents Nebraska Affordable Housing Tax Credit Act FAQ (Jan. 14, 2019) 
Application Current Application Information
Application Process

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.

Application Deadline(s) Available on website
Allocation Process/Priorities

Generally, match federal LIHTC awards.

Annual State Cap

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

Transaction Cap

Same as federal LIHTC allocation.

Credit Description 9% and 4%
How To Claim the Credit Developers must complete application and submit it to NIFA, along with an application fee, no later than the application due date listed on website. Owners of qualified developments that receive a federal LIHTC will generally receive a state credit equal to no more than 100% of the federal credit.
Bifurcated from Federal LIHTC? Not applicable
Credit Period (Compliance) 6 years (30 years).
Recapture Credits recaptured under federal regulations are recaptured by state. Any credits recaptured or disallowed are considered income to qualified taxpayer.
Other

 

Novogradac Contact

Renee Beaver

State Contact

Sara Tichota
LIHTC Allocation Manager
[email protected]

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Nevada

Program Nevada Low-Income Housing Tax Credit
Administering Agency Nevada Housing Division
Enacting Legislation

S.B. 448

Amending Legislation  
Related Statutes and Documents  
Application Current application information
Application Process

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.

Application Deadline(s) Not applicable
Allocation Process/Priorities

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

Annual State Cap

$10 million 

Transaction Cap  
Credit Description

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

How To Claim the Credit  
Bifurcated from Federal LIHTC? Yes
Credit Period (Compliance)  
Recapture Not Applicable
Other

 

Novogradac Contact

Jeff Nishita

State Contact

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

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New Jersey

Program Aspire Program
Administering Agency New Jersey Economic Development Authority
Enacting Legislation

A.B. 4

Amending Legislation A.B. 5939
Related Statutes and Documents  
Application  
Application Process

 

Application Deadline(s)  
Allocation Process/Priorities

 

Annual State Cap

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

Transaction Cap  $42 million for most projects; $60 million for certain projects in targeted area that receive the federal LIHTC.
Credit Description

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.

How To Claim the Credit  
Bifurcated from Federal LIHTC?  
Credit Period (Compliance)  
Recapture  
Other  
Novogradac Contact

 

State Contact

 

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New Mexico

Program New Mexico Affordable Housing Tax Credit
Administering Agency New Mexico Mortgage Finance Authority
Enacting Legislation

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

Amending Legislation S.B. 144; S.B. 62
Related Statutes and Documents New Mexico Statutes Section 7-91; Fact Sheet
Application Universal Rental Development Application
Application Process

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.

Application Deadline(s) First come, first served
Allocation Process/Priorities

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.
Annual State Cap

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

Transaction Cap $500,000
Credit Description

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.

How To Claim the Credit Affordable Housing Tax Credit Claim Form
Bifurcated from Federal LIHTC? Yes
Credit Period (Compliance) Minimum of five years for single family housing and 10 years for multifamily housing. The minimum can be up to 30 years based on the allocation per housing unit (similar to credit period).
Recapture Resale, refinance, or transfer of ownership within affordability period will trigger 100% recapture.
Other

New Mexico Affordable Housing Tax Credit Program Notice of Funding Availability; MFA Design StandardsRental Design StandardsRental Multifamily State Tax Check ListTax Credit TransferFiscal ImpactTax Credit VoucherSchedulesDonor List

Novogradac Contact

Jeff Nishita

State Contact

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

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New York

Program New York Low-Income Housing Tax Credit
Administering Agency New York State Homes and Community Renewal
Enacting Legislation A.B. 11006
Amending Legislation S.B. 2811-C
Related Statutes and Documents NY CLS Public Housing Law Section 21
Application Application Information
Application Process

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.

Application Deadline(s)

The state LIHTC allocation is not calendar year-specific.

Allocation Process/Priorities

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.
Annual State Cap

$88 million.

Transaction Cap Not applicable
Credit Description

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).

How To Claim the Credit Form DTF-624
Bifurcated from Federal LIHTC? Yes
Credit Period (Compliance) 10 years (30 years).
Recapture Same as federal
Other

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

Novogradac Contact

Charlie Rhuda, CPA

State Contact

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

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North Carolina (Proposed)

Program Low-Income Housing Tax Credits
Administering Agency North Carolina Housing Finance Agency
Enacting Legislation H.B. 208
Amending Legislation  
Related Statutes and Documents  
Application  
Application Process  
Application Deadline(s)  
Allocation Process/Priorities  
Annual State Cap  
Transaction Cap
Credit Description

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.

How To Claim the Credit  
Bifurcated from Federal LIHTC?  
Credit Period (Compliance)  
Recapture Same as federal.
Other

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

Novogradac Contact  
State Contact  

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Ohio

Program Ohio Low-Income Housing Tax Credit
Administering Agency Ohio Housing Finance Agency
Enacting Legislation H.B. 33
Amending Legislation  
Related Statutes and Documents  
Application  
Application Process  
Application Deadline(s)  
Allocation Process/Priorities  
Annual State Cap $100 million
Transaction Cap Amount of federal LIHTC allocation.
Credit Description State credit equal up to the amount of the federal LIHTC to the extent that the combined credits don’t exceed the amount necessary to ensure financial feasibility.
How To Claim the Credit  
Bifurcated from Federal LIHTC?  
Credit Period (Compliance) 10 years
Recapture Same as federal LIHTC.
Other

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

Novogradac Contact  
State Contact  

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Oklahoma

Program Oklahoma Affordable Housing Tax Credit
Administering Agency Oklahoma Housing Finance Agency
Enacting Legislation S.B. 2128
Amending Legislation S.B. 1264; H.B. 1411; S.B. 1685
Related Statutes and Documents Oklahoma Statutes Section 2357.403 of Title 68
Application

Application information

Application Process

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

Application Deadline(s)  
Allocation Process/Priorities

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.
Annual State Cap $4 million, split evenly between 4% and 9% properties, with leftover credits available to both, but priority for 4% LIHTCs.
Transaction Cap Up to amount of federal LIHTC and cannot exceed it.
Credit Description For new construction only with value up to federal LIHTC amount.
How To Claim the Credit Complete Form 511CR and provide an eligibility statement from the Oklahoma Housing Finance Agency with the Oklahoma state tax return.
Bifurcated from Federal LIHTC? Yes
Credit Period (Compliance) 10 years.
Recapture Same as federal
Other

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.

Novogradac Contact

Nick Hoehn, CPA

State Contact

Danette Carr
Oklahoma Housing Finance Agency
405.419.8136

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Pennsylvania

Program Pennsylvania Housing Tax Credit
Administering Agency Pennsylvania Housing Finance Agency
Enacting Legislation S.B. 30
Amending Legislation  
Related Statutes and Documents  
Application Application information
Application Process Apply with the federal LIHTC application.
Application Deadline(s)  
Allocation Process/Priorities  
Annual State Cap $10 million
Transaction Cap $1.5 million
Credit Description As much as practical, administered using the same guidelines, procedures and priorities as with the federal LIHTC. At least 10% of credits for housing units that target households with incomes at or below 30% of area median income.
How To Claim the Credit Submit a copy of the tax credit certificate and claim for to the Pennsylvania Department of Revenue, Office of Economic Development.
Bifurcated from Federal LIHTC?  
Credit Period (Compliance) Five years
Recapture Same as federal LIHTC
Other Pennsylvania Housing Tax Credit Program Guidelines (Sept. 16, 2022)
Novogradac Contact Nick Hoehn
State Contact Jessica Perry
Director of Development
[email protected]

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Rhode Island

Program Rhode Island Low-Income Housing Tax Credit
Administering Agency Rhode Island Office of Housing and Community Development
Enacting Legislation H.B. 5200
Amending Legislation  
Related Statutes and Documents  
Application  
Application Process  
Application Deadline(s)  
Allocation Process/Priorities  
Annual State Cap $30 million
Transaction Cap  
Credit Description  
How To Claim the Credit Against state tax liability over five years or redeemed at 90% of credit value.
Bifurcated from Federal LIHTC?  
Credit Period (Compliance) Five years (15 years)
Recapture Mirror to federal recapture.
Other Sunset date June 30, 2028.
Novogradac Contact  
State Contact  

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South Carolina

Program South Carolina State Tax Credit
Administering Agency South Carolina State Housing Finance and Development Authority
Enacting Legislation Workforce and Senior Affordable Housing Act (H. 3998)
Amending Legislation  
Related Statutes and Documents Revenue Ruling 21-5; State tax credit policies; Attorney General opinion letter
Application Application information
Application Process

 

Application Deadline(s)  
Allocation Process/Priorities

 

Annual State Cap

 

Transaction Cap Equals the federal LIHTC amount.
Credit Description

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.

How To Claim the Credit  
Bifurcated from Federal LIHTC?  
Credit Period (Compliance) Same as federal.
Recapture

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.

Other The total amount of the tax credit allowed by this section for a taxable year may not exceed the taxpayer's income tax liability. Any unused tax credit may be carried forward to apply to the taxpayer's next five succeeding years' tax liability. The taxpayer may not apply the credit against any prior tax years' tax liability.
Novogradac Contact

Chris Key

State Contact 

Chris McMillan
Multifamily Finance and Bonds Manager
803.896.9196 

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Texas

Program Texas State Low-Income Housing Tax Credit
Administering Agency Texas Department of Housing and Community Affairs
Enacting Legislation H.B. 1058
Amending Legislation  
Related Statutes and Documents  
Application  
Application Process

 

Application Deadline(s)  
Allocation Process/Priorities

 

Annual State Cap

$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.

Transaction Cap Amount of federal LIHTC award.
Credit Description

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.

How To Claim the Credit  
Bifurcated from Federal LIHTC?  
Credit Period (Compliance) 10 years (15 years)
Recapture

Same as federal credit.

Other Credits may be claimed in tax years for which a report was originally due Jan. 1, 2026, and after. No credits may be allocated after Dec. 31, 2029.
Novogradac Contact  
State Contact   

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Utah

Program Utah Housing Credit
Administering Agency Utah Housing Corporation
Enacting Legislation H.B. 170
Amending Legislation S.B. 39
Related Statutes and Documents Utah Code  Section 59-7-607, 2023 QAP
Application If applying for Housing Credits, Private Activity Bond volume cap or Olene Walker Housing Loan funds with Housing Credits, the Consolidated Application in Excel format must be used. To obtain an Excel Consolidated Application, call David Seely at (801) 902-8246 or email: [email protected]  
Application Process

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 Deadline(s)
  • Application fee due with application,
  • reservations notification comes approximately 90 days from application deadline.
Allocation Process/Priorities

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.
Annual State Cap

 

Transaction Cap  
Credit Description

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).
How To Claim the Credit UHC will issue IRS Forms 8609 reporting the amount of credits allocated to a development following receipt of the final cost certification package in accordance with the QAP. Developments that enter into a carryover allocation, the development must be placed in service before the end of the second year after the year in which a reservation is made in order to claim the LIHTCs.
Bifurcated from Federal LIHTC? Yes
Credit Period (Compliance) 10 years (50 years).
Recapture Same as federal
Other  
Novogradac Contact

Jon Adkins

State Contact 

Robyn Cordova
Multifamily Credit Analyst
801.902.8246

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Vermont

Program Vermont Affordable Housing Tax Credit
Administering Agency Vermont Housing Finance Agency
Enacting Legislation H.B. 671
Amending Legislation H.B. 331
Related Statutes and Documents 32 Vermont Statutes Section 5930u
Application

Application Information

Application Process

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.

Application Deadline(s) Applications can be sent in at any time, and are approved at monthly meetings of the Vermont Housing and Finance Authority Board of Commissioners.
Allocation Process/Priorities

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.
Annual State Cap $4 million
Transaction Cap $150,000
Credit Description

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.

How To Claim the Credit

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. 

Bifurcated from Federal LIHTC? Yes
Credit Period (Compliance)

15-year compliance period (same as federal)

Recapture Same as federal
Other

Fact Sheet; Affordable Housing Credit Summary

Novogradac Contact

Charlie Rhuda

State Contact

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

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Virginia

Program Virginia Housing Opportunity Tax Credit
Administering Agency Virginia  Housing Development Authority
Enacting Legislation S.B. 1197
Amending Legislation S.B. 47
Related Statutes and Documents Title 13 Chapter 200
Application  
Application Process  
Application Deadline(s)  
Allocation Process/Priorities  
Annual State Cap $15 million for 2021; $60 million annually for 2022-2025, with $20 million going to projects in cities with a population of no greater than 35,000.
Transaction Cap  
Credit Description Up to the amount of the federal LIHTC allocated.
How To Claim the Credit Attach appropriate form to tax return.
Bifurcated from Federal LIHTC?  
Credit Period (Compliance) 10 years (15 years)
Recapture Same as federal.
Other Effective for tax years beginning Jan. 1, 2021, and before Jan. 1, 2026.
Novogradac Contact Dirk Wallace
State Contact  

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Wisconsin

Program Wisconsin State Housing Tax Credit
Administering Agency Wisconsin Housing and Economic Development Agency
Enacting Legislation ACT 176
Amending Legislation Not Applicable
Related Statutes and Documents 2023 QAP
Application

 

Application Process  
Application Deadline(s)

Information available at WHEDA HTC Allocating page

Allocation Process/Priorities

Set asides as follows:

  • 25% rural,
  • 20% small urban areas,
  • 55% balance of state.
Annual State Cap $7 million
Transaction Cap

$1.4 million

Credit Description

Complements the federal 4% LIHTC.

How To Claim the Credit Policies and procedures established under the Act must, to the extent practicable, incorporate WHEDA’s policies and procedures for awarding tax credits through the similar federal tax credit program.
Bifurcated from Federal LIHTC?  
Credit Period (Compliance) Six years (15 years).
Recapture In the event that the recapture of any credit is required in any taxable year, the taxpayer shall include the recaptured proportion of the credit on the return submitted for the taxable year in which the recapture event is identified.
Other  
Novogradac Contact  
State Contact

Nathan Simms 
Director-Commercial Lending
[email protected]

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