The CHDC may be available to personal income tax or corporate excise taxpayers that invest in housing development projects in Massachusetts.
The current yearly cap of the CHDC is $10,000,000.
The Department of Housing and Community Development (DHCD) is responsible for determining:
- Which housing projects qualify for the CHDC
- The actual amount of the CHDC
The CHDC is available for up to 25% of the costs of qualified project expenditures.
The credit is allowed only:
- For the tax year of the completed project
- After the DHCD notifies the Department of Revenue (DOR) that the development project is completed
Expenditures are applicable to the credit only if the date of expenditures were:
- Put into writing by the DHCD and
- Sent to the DOR
Carryover and 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)
- Technical Information Release 16-15
- Technical Information Release 10-14
Page updated: April 9, 2020