The LIHTC is available to:
- Individual taxpayers
To qualify, the taxpayers must invest in a qualified low-income housing project located in Massachusetts.
The current yearly cap is $10,000,000. The Department of Housing and Community Development (DHCD) determines which:
- Low-income housing projects will qualify for the credit
- Properties may generate a LIHTC for investors.
DHCD also prepares an annual allocation plan and publishes a Notice of Funding Availability (NOFA) for use by a developer interested in applying for qualification.
Properties must meet the federal law requirements for “qualified low-income housing projects” to be eligible for the credit.
- Be located in Massachusetts
- Meet the requirements established by Massachusetts laws
- Be owned by an owner who enters into a regulatory agreement with DHCD
Minimum Excise, Carryover, Transfer and Recapture
The LIHTC may not reduce the corporate excise due below the minimum excise, currently $456.
Any unused credits may be carried forward for next 5 tax years. Alternately, unused credits may be transferred.
If an event or circumstance occurs that results, or would have resulted, in the recapture of any portion of a federal Low Income Housing Credit, then the Massachusetts LIHTC may also be subject to recapture.
For more information, details on how amounts are calculated, and important definitions please see:
- Massachusetts General Laws Chapter 23B, Section 3
- Massachusetts General Laws Chapter 62, Section 6I (Personal income)
- Massachusetts General Laws Chapter 63, Section 31H (Corporate excise)
- 760 Code of Massachusetts Regulations 54
- TIR 16-15:Tax Provisions Included in An Act Relative to Job Creation and Workforce Development
Page updated: May 8, 2020