Section 38BB: Credit against taxes imposed for a certified housing development project
[ Subdivisions (1) through (4) effective for tax years beginning on or after January 1, 2017. See 2016, 219, Sec. 139.]
[ Subdivision (1) effective until May 30, 2023. For text effective May 30, 2023, see below.]
Section 38BB. (1) A credit shall be allowed against the tax liability imposed by this chapter, to the extent awarded by the department of housing and community development, in this section referred to as "DHCD'', established in chapter 23B, for a certified housing development project, as defined in chapter 40V, in an amount up to 25 per cent of the cost of qualified project expenditures of the market rate units within the project, as defined in section (1) of chapter 40V. The credit under this section shall be allowed for the taxable year in which DHCD gives the commissioner of revenue written notification of completion of the certified housing development project.
[ Subdivision (1) as amended by 2023, 7, Secs. 230 and 231 effective May 30, 2023. See 2023, 7, Sec. 298. For text effective until May 30, 2023, see above.]
(1) A credit shall be allowed against the tax liability imposed by this chapter, to the extent awarded by the executive office of housing and livable communities, in this section referred to as "EOHLC'', established in chapter 23B, for a certified housing development project, as defined in chapter 40V, in an amount up to 25 per cent of the cost of qualified project expenditures of the market rate units within the project, as defined in section (1) of chapter 40V. The credit under this section shall be allowed for the taxable year in which EOHLC gives the commissioner of revenue written notification of completion of the certified housing development project.
(2) Taxpayers eligible for the this credit may, with prior notice to and under regulations adopted by the commissioner of revenue transfer the credits, in whole or in part, to any individual or entity, and the transferee shall be entitled to apply the credits against the tax with the same effect as if the transferee had incurred the qualified project expenditures itself.
[ Subdivision (3) effective until May 30, 2023. For text effective May 30, 2023, see below.]
(3) If the credit allowable for any taxable year exceeds the taxpayer's tax liability for that tax year, the taxpayer may carry forward and apply in any subsequent taxable year, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year; provided, however, that in no event shall the taxpayer apply the credit to the tax for any taxable year beginning more than 10 years after the taxable year in which DHCD gives the commissioner written notification of completion of the certified housing development project. If the credit is transferred by the taxpayer, the carry over provisions applicable to the transferee shall apply.
A transferee shall use the credit in the year it is transferred. If the credit allowable for any taxable year exceeds the transferee's tax liability for that tax year, the transferee may carry forward and apply in any subsequent taxable year, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year; provided, however, that in no event shall the transferee apply the credit to the tax for any taxable year beginning more than 10 years after the taxable year in which DHCD gives the commissioner of revenue written notification of completion of the certified housing development project.
[ Subdivision (3) as amended by 2023, 7, Sec. 231 effective May 30, 2023. See 2023, 7, Sec. 298. For text effective until May 30, 2023, see above.]
(3) If the credit allowable for any taxable year exceeds the taxpayer's tax liability for that tax year, the taxpayer may carry forward and apply in any subsequent taxable year, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year; provided, however, that in no event shall the taxpayer apply the credit to the tax for any taxable year beginning more than 10 years after the taxable year in which EOHLC gives the commissioner written notification of completion of the certified housing development project. If the credit is transferred by the taxpayer, the carry over provisions applicable to the transferee shall apply.
A transferee shall use the credit in the year it is transferred. If the credit allowable for any taxable year exceeds the transferee's tax liability for that tax year, the transferee may carry forward and apply in any subsequent taxable year, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year; provided, however, that in no event shall the transferee apply the credit to the tax for any taxable year beginning more than 10 years after the taxable year in which EOHLC gives the commissioner of revenue written notification of completion of the certified housing development project.
[ Subdivision (4) effective until May 30, 2023. For text effective May 30, 2023, see below.]
(4) For any certified housing development project, qualified project expenditures applicable to this credit shall be treated for purposes of this section as made on the date that DHCD gives the commissioner of revenue written notification of completion of the certified housing development project.
[ Subdivision (4) as amended by 2023, 7, Sec. 231 effective May 30, 2023. See 2023, 7, Sec. 298. For text effective until May 30, 2023, see above.]
(4) For any certified housing development project, qualified project expenditures applicable to this credit shall be treated for purposes of this section as made on the date that EOHLC gives the commissioner of revenue written notification of completion of the certified housing development project.
[ Subdivision (5) effective until January 1, 2024. For text effective January 1, 2024, see below.]
(5) The total amount of credits that may be authorized by DHCD in a calendar year under this section and subsection (q) of section (6) of chapter 62 shall not exceed $10,000,000 and shall include: (1) credits granted during the year under this section or said subsection (q) of section (6) of chapter 62; (2) carry forwards of credits from prior years under this section or said subsection (q) of section (6) of chapter 62, to the extent that such credit carry forwards are estimated by the commissioner of revenue to offset tax liabilities during the year. Any portion of the $10,000,000 annual cap not awarded by DHCD in a calendar year shall not be applied to awards in a subsequent year. DHCD shall provide the commissioner of revenue with any documentation that the commissioner deems necessary to confirm compliance with the annual cap and the commissioner shall provide a report confirming compliance with the annual cap to the secretary of administration and finance and the secretary of housing and economic development.
[ Subdivision (5) as amended by 2023, 7, Sec. 231 effective May 30, 2023 until January 1, 2024. See 2023, 7, Sec. 298. For text effective until May 30, 2023, see above. For text effective January 1, 2024, see below.]
(5) The total amount of credits that may be authorized by EOHLC in a calendar year under this section and subsection (q) of section (6) of chapter 62 shall not exceed $10,000,000 and shall include: (1) credits granted during the year under this section or said subsection (q) of section (6) of chapter 62; (2) carry forwards of credits from prior years under this section or said subsection (q) of section (6) of chapter 62, to the extent that such credit carry forwards are estimated by the commissioner of revenue to offset tax liabilities during the year. Any portion of the $10,000,000 annual cap not awarded by EOHLC in a calendar year shall not be applied to awards in a subsequent year. EOHLC shall provide the commissioner of revenue with any documentation that the commissioner deems necessary to confirm compliance with the annual cap and the commissioner shall provide a report confirming compliance with the annual cap to the secretary of administration and finance and the secretary of housing and livable communities.
[ Subdivision (5) as amended by 2023, 50, Sec. 33 effective January 1, 2024. See 2023, 50, Sec. 45. For text effective until January 1, 2024, see above.
(5) EOHLC may authorize up to $30,000,000 in credits annually under this section and subsection (q) of section 6 of chapter 62. EOHLC may authorize annually any credits under this section or said subsection (q) of said section 6 of said chapter 62 returned to EOHLC by a certified housing development project. The total amount of credits authorized during a year shall include: (1) credits granted during the year under this section or said subsection (q) of section 6 of chapter 62; and (2) carry forwards of credits from prior years under this section or said subsection (q) of section 6 of chapter 62, to the extent that such credit carry forwards are estimated by the commissioner of revenue to offset tax liabilities during the year. Any portion of the $30,000,000 annual cap not awarded by EOHLC in a calendar year shall not be applied to awards in a subsequent year. EOHLC shall provide the commissioner of revenue with any documentation that the commissioner deems necessary to confirm compliance with the annual cap and the commissioner shall provide a report confirming compliance with the annual cap to the secretary of administration and finance and the secretary of housing and livable communities.
[ Subdivision (5) as amended by 2014, 287, Secs. 61 and 63 effective January 1, 2024 does not take effect. See 2014, 287, Sec. 124A as added by 2018, 99, Sec. 26. Repealed by 2023, 50, Sec. 40, eff. Jan. 2, 2024. See also, 2014, 287, Sec. 125 as amended by 2014, 359, Sec. 65 and 2018, 99, Sec. 27.]
(5) The total amount of credits that may be authorized by DHCD in a calendar year under this section and subsection (q) of section (6) of chapter 62 shall not exceed $5,000,000 and shall include: (1) credits granted during the year under this section or said subsection (q) of section (6) of chapter 62; (2) carry forwards of credits from prior years under this section or said subsection (q) of section (6) of chapter 62, to the extent that such credit carry forwards are estimated by the commissioner of revenue to offset tax liabilities during the year. Any portion of the $5,000,000 annual cap not awarded by DHCD in a calendar year shall not be applied to awards in a subsequent year. DHCD shall provide the commissioner of revenue with any documentation that the commissioner deems necessary to confirm compliance with the annual cap and the commissioner shall provide a report confirming compliance with the annual cap to the secretary of administration and finance and the secretary of housing and economic development.
[ Subdivision (6) effective until May 30, 2023. For text effective May 30, 2023, see below.]
(6) The commissioner of revenue, in consultation with DHCD, shall adopt regulations necessary to carry out this section.
[ Subdivision (6) as amended by 2023, 7, Sec. 231 effective May 30, 2023. See 2023, 7, Sec. 298. For text effective until May 30, 2023, see above.]
(6) The commissioner of revenue, in consultation with EOHLC, shall adopt regulations necessary to carry out this section.