Authorizes a qualified project investor in a qualified workforce housing project to claim a credit of 40 percent of the qualified investment, up to $1 million per taxable year. The credit is allowed in the first tax year in which the housing workforce housing projects has units certified for occupancy.
Authorizes the commissioner of DEED to allocate credits for tax years 2018-2023. Credits not allocated may be carried forward to the next year. No more than $2.8 million in allocations may be issued for a project. In tax year 2018, the maximum allocable credits are $5 million; for tax years 2019-2023, up to $7 million may be allocated.
The commissioner of DEED must make applications available on the DEED website. The application must provide sufficient information for the commissioner to determine that the project meets the requirements of a qualified workforce housing project, the developer has sufficient financing to acquire and construct the project, the financial viability of the project, the total amount of credits applied for, the project’s investors, the amount each has invested or will invest, and the amount of tax credits the developer proposed to provide to each; and any other information the commissioner deems appropriate.
The commissioner of DEED must give preference to projects with the highest workforce housing undersupply ratio, except when the commissioner determines that the investment is circumventing the spirit of the law or little or no economic growth would occur as a result of the investment.
Credit certificates must be issued to the qualified project investor designated in the application and state the amount of the credit. If the project does not have units certified for occupancy within two years of the issuance of the credit certificate, the allocation is cancelled. The commissioner of DEED must notify the commissioner of revenue of credit certificates issued. The commissioner of DEED must charge an application fee for administration of the program.