Amendment #43 to H.4461

Amendment #43 to H4461

Low-Income Housing Donation Tax Credit

Representatives Honan of Boston and Rushing of Boston move to amend the bill by adding the following 10 sections:

SECTION XXXX. Subsection (a) of section 6I of chapter 62 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by inserting the following definitions:-

“Qualified Donation" real or personal property donated to a sponsor for the use of purchasing, constructing, or rehabilitating a qualified Massachusetts project.

“Sponsor” a not-for-profit organization which (1) has been issued a ruling from the Internal Revenue Service of the United States Department of the Treasury that the organization is exempt from income taxation under section 501(c)(3) of the Code; (2) will have material control over the operations of a qualified Massachusetts project; and (3) either (i) is a certified Community Development Corporation, as defined in chapter 40H; (ii) is a certified Community Housing Development Organization under section 92.2 of title 24 of the Code of Federal Regulations; or (iii) is determined by the department to have a track record of successful development of affordable housing projects in Massachusetts.

SECTION XXXX. Subsection (b) of said section 6I of said chapter 62, as so appearing, is hereby amended by inserting the following:-

(4) The department may allocate Massachusetts low-income housing tax credits under this section for a qualified donation by a taxpayer. The total Massachusetts low-income housing tax credit available to a taxpayer for a qualified donation shall be equal to 50 per cent of the donation’s value, as determined by the department, provided, however, that the department shall be authorized to increase the amount of available credit for a qualified donation to up to 65 per cent of the donation’s value if it deems such an increase necessary to the project’s viability.

For the purposes of counting an authorization of Massachusetts Low-Income Housing Tax Credit towards the total sum that the department may authorize annually under part (i) of paragraph (1) of subsection (b) of this section, the department and the commissioner shall count any amount of Massachusetts low-income housing tax credit authorized to a taxpayer for a qualified donation as 1/5th of the amount authorized for said qualified donation.

SECTION XXXX. Paragraph (1) of subsection (c) of said section 6I of said chapter 62, as so appearing, is hereby amended by inserting after the word “project”, in line 81, the following:-

,whether by qualified donation or otherwise.

SECTION XXXX Said subsection (c) of said section 6I of said chapter 62, as so appearing, is hereby amended by striking out paragraph (3) and inserting in place thereof the following:-

(3) The Massachusetts low-income housing tax credit authorized to a taxpayer with respect to a qualified Massachusetts project other than a qualified donation shall be taken against the taxes imposed under this chapter, claimed equally for 5 years and subtracted from the amount of state tax otherwise due for each taxable period, and shall not be refundable.

The Massachusetts low-income housing tax credit authorized to a taxpayer with respect to a qualified Massachusetts project attributable to a qualified donation shall be taken against the taxes imposed under this chapter, claimed in a single year and subtracted from the amount of state tax otherwise due for the taxable year, and shall not be refundable.

Any amount of the low-income housing tax credit, whether by qualified donation or otherwise, that exceeds the tax due for a taxable year may be carried forward to any of the 5 subsequent taxable years.

SECTION XXXX. Subsection (a) of section 31H of chapter 63 of the General Laws, as so appearing, is hereby amended by inserting the following definitions:-

“Qualified Donation" real or personal property donated to a sponsor for the use of purchasing, constructing, or rehabilitating a qualified Massachusetts project.

SECTION XXXX. Subsection (b) of said section 31H of said chapter 63, as so appearing, is hereby amended by inserting the following:-

SECTION XXXX. Paragraph (1) of subsection (c) of said section 31H of said chapter 63, as so appearing, is hereby amended by inserting after the word “project”, in line 83”, the following:-

, whether by qualified donation or otherwise.

SECTION XXXX. Subsection (c) of said section 31H of said chapter 63, as so appearing, is hereby amended by striking out paragraph (3) and inserting in place thereof the following:-

SECTION XXXX. Sections 1-8 shall take effect for the tax year beginning January 1, 2017.

SECTION XXXX. Sections 1-8 shall expire on December 31, 2021.