RELATING TO THE LOW-INCOME HOUSING TAX CREDIT.

2025 Regular Session Introduced by Troy Hashimoto

SB 944 extends the Low-Income Housing Tax Credit, allowing LLCs to participate, boosting affordable housing development for low-income families and investors.

Conference committee meeting to reconvene on 04-25-25 3:30 PM; Conference Room 016.

#extension #limitedliabilitycompanies #low-incomehousingtaxcredit #partners

Purpose and Intent

SB 944 aims to extend the Low-Income Housing Tax Credit (LIHTC) program, which is designed to incentivize the development and rehabilitation of affordable housing for low-income individuals and families. The bill seeks to enhance the effectiveness of this program by making provisions that would facilitate participation from Limited Liability Companies (LLCs) and their partners in the LIHTC framework.

Key Provisions

Extension of the LIHTC Program: The bill proposes an extension of the existing Low-Income Housing Tax Credit, allowing for continued support in the development of affordable housing.

Inclusion of Limited Liability Companies: SB 944 specifically addresses the involvement of LLCs in the LIHTC program, potentially broadening the pool of participants who can benefit from tax credits.

Partnership Provisions: The bill includes provisions that clarify how partners within LLCs can engage with the LIHTC, ensuring that the tax benefits are accessible and applicable to a wider range of housing developers.

Affected Parties

Developers and Investors: The bill primarily affects housing developers and investors, particularly those operating as LLCs, by providing them with tax incentives to invest in low-income housing projects.

Low-Income Families: By promoting the development of affordable housing, the bill aims to benefit low-income families who are in need of accessible housing options.

State Housing Authorities: State agencies responsible for housing development and regulation may also be impacted as they implement the extended provisions of the LIHTC program.

Procedural Timeline

Introduced: January 17, 2025

Recent Legislative Actions:

April 25, 2025: Conference committee meetings scheduled to discuss the bill at 3:30 PM and 4:30 PM in Conference Rooms 016 and 225, respectively.
April 24, 2025: Conference committee meeting scheduled for 10:30 AM in Conference Room 224.
April 4, 2025: The Senate disagreed with House amendments, indicating ongoing negotiations.
March 28, 2025: The Finance Committee recommended the bill be passed without amendments.
March 18, 2025: The bill passed Second Reading with amendments and was referred to the Finance Committee.
February 14, 2025: The bill passed Second Reading in the Senate, as amended, and was referred to the Ways and Means Committee.

Conclusion

SB 944 represents a significant legislative effort to enhance the Low-Income Housing Tax Credit program, making it more inclusive for LLCs and their partners. By extending this program, the bill aims to facilitate the development of affordable housing, thereby addressing the pressing needs of low-income families. The ongoing discussions in the conference committee will be crucial in determining the final form of the legislation.

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