Overview
The CHDC is available to personal income tax or corporate excise taxpayers that invest in certified housing development projects in Massachusetts to the extent awarded by the Executive Office of Housing and Livable Communities (EOHLC).
EOHLC is responsible for determining:
- Which housing projects qualify for the CHDC
- The actual amount of the CHDC
A certified housing development project includes new construction or substantial rehabilitation of a housing development project that has been approved by EOHLC for participation in the housing development incentive program (a program designed to promote increased residential growth, expanded diversity of housing supply, neighborhood stabilization, and economic development within housing development zones in gateway municipalities).
The annual cap for the CHDC for the 2023 calendar year was $57,000,000. For taxable years beginning on or after January 1, 2024, the annual cap is $30,000,000.
Eligibility
The CHDC is available for up to 25% of the costs of qualified project expenditures.
Qualified project expenditures include expenditures directly related to the construction or substantial rehabilitation of a certified housing development project (such as site assessment and remediation of hazardous materials), but excludes the purchase of the property.
The credit is allowed only:
- For the tax year of the completed project
- After EOHLC notifies the Department of Revenue (DOR) that the development project is completed
Expenditures are applicable to the credit only if the expenditures were:
- Put into writing by the EOHLC and
- Sent to the DOR
Carryover & Transfer
Unused CHDCs may be carried forward for the next 10 tax years or transferred. However, the credits aren't refundable.
For more detailed information and important definitions, please see:
- Massachusetts General Laws Chapter 62, Section 6(q) (Personal income)
- Massachusetts General Laws Chapter 63, Section 38BB (Corporate excise)
- Massachusetts General Laws Chapter 40V Section 1
- Technical Information Release 24-4
- Technical Information Release 16-15
- Technical Information Release 15-4
- Technical Information Release 14-13
- Technical Information Release 10-15
- Technical Information Release 10-14
Contact for Massachusetts Certified Housing Development Tax Credit (CHDC)
Phone
9 a.m.–4 p.m., Monday through Friday