Louisiana 2023 Regular Session

Louisiana Senate Bill SB221

Introduced
4/17/23  
Refer
4/17/23  

Caption

To provide an income tax credit for donations to support the development, construction, or rehabilitation of affordable housing. (OR -$10,000,000 GF RV See Note)

Impact

By enacting SB 221, The Louisiana state government hopes to incentivize private investments in affordable housing, thereby addressing the critical need for affordable housing in various communities across the state. The law limits the total allocated tax credits to $10 million per year, and no more than $1 million can go towards general operating support or technical assistance. The bill is expected to bolster the affordable housing sector by providing the necessary funding mechanisms needed for various projects, which may ultimately enhance community development and stability.

Summary

Senate Bill 221 aims to address the growing issue of affordable housing in Louisiana by introducing a nonrefundable income tax credit for donations made towards the development, construction, or rehabilitation of affordable housing projects. The bill specifically defines eligible affordable housing projects as those intended for first-time homeowners earning between 30% to 80% of the area median income, or rental projects where at least 25% of the units have maximum allowable rents as defined by the administrative housing agency. Under this proposed law, the tax credit amount equals 50% of the fair market value of the donation, and donors can carry forward any unused credit against their tax obligations for a maximum of five years.

Sentiment

The sentiment surrounding SB 221 appears to be generally positive, as supporters view it as a significant step forward in combating housing insecurity and instability. Advocates for affordable housing express optimism that this incentive will attract the needed investment to create and rehabilitate housing opportunities for low-to-moderate income families. However, there may be concerns regarding the adequacy of the funding cap, which could limit the effectiveness of the program in meeting the housing needs of the community.

Contention

There are points of contention associated with the allocation limits and eligibility requirements for the tax credit, which may bring forth challenges in ensuring adequate and equitable distribution of resources. Critics could express concerns that the criteria for projects might exclude certain communities or projects that do not meet the strict definitions set forth in the bill. The need for verification and the potential for recovery of credits also adds layers of complexity that could affect both donors and the administrative housing agency in the implementation of this program.

Companion Bills

No companion bills found.

Previously Filed As

LA HB685

Establishes a state low-income housing tax credit for the development or construction of low-income housing (OR -$1,000,000 GF RV See Note)

LA HB452

Establishes a tax credit for the development of certain affordable housing projects (EG1 -$1,700,000 GF RV See Note)

LA H1131

Affordable Housing and Supportive Services for Persons with Developmental Disabilities

LA SB1567

Relating to insurance premium tax credits for the construction or rehabilitation of a supportive housing property.

LA SB1116

Relating to insurance premium tax credits for the construction or rehabilitation of a supportive housing property.

LA A5318

Reduces term of affordability required for affordable housing created through middle housing construction or conversion.

LA A5597

Establishes Nonprofit Housing Construction and Rehabilitation Pilot Program to facilitate affordable housing construction.

LA AB926

Income taxes: credits: affordable housing.

LA SB220

Provides relative to the income tax credit for donations to school tuition organizations. (8/1/23) (OR DECREASE GF RV See Note)

LA S3646

Facilitates construction and rehabilitation of affordable housing built in part through sweat equity by eventual occupant.

Similar Bills

TX HB3759

Relating to the operation and regulation of certain consolidated insurance programs.

MO HB3020

APPROPRIATION BILL

MD HB263

State Highway Administration - Sidewalks and Bicycle Pathways - Maintenance and Repair

MD HB628

Highways - Sidewalks and Bicycle Pathways - Construction and Reconstruction

CA AB2665

Housing finance: Mixed Income Revolving Loan Program.

MO HB2020

Appropriates money for the expenses, grants, refunds, distributions, purchase of equipment, planning expenses, capital improvement projects, and equipment or systems of the several departments and offices of state government

MO HB19

APPROPRIATIONS BILL

CT SB00248

An Act Concerning Public Works Projects And The Threshold For Competitive Bidding, Subcontractor Prequalification, Construction Manager At-risk Project Delivery Contracts, The Hiring Of Consultants And The Purchasing Of Certain Property And Services.