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.
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
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.