Texas Senate Bill SB1116

Texas 2019 - 86th Regular

Caption

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

Impact

The implementation of SB1116 will potentially influence state laws related to property development and housing finance. By offering tax credits equivalent to 20% of total eligible costs for each supportive housing project developed, the bill encourages greater investment in affordable housing. Additionally, the cap on total tax credits available per fiscal year, set at $5 million, is significant as it ensures that the program remains sustainable while aiming for a broader social effect.

Summary

SB1116 establishes a framework for granting insurance premium tax credits to entities engaged in the construction or rehabilitation of supportive housing properties. The bill aims to incentivize the development of residential rental properties that cater specifically to individuals requiring assistance to live independently. This initiative is expected to enhance the availability of supportive housing across Texas, thereby addressing the needs of vulnerable populations through comprehensive on-site services and case management.

Contention

Notable points of contention may arise regarding the bill's financial implications and its effectiveness in truly increasing the availability of supportive housing. Critics are likely to question whether the tax credits are sufficient to incentivize developers compared to the costs involved in such projects. Furthermore, concerns may be raised about the allocation of the tax credits and whether it sufficiently supports a diverse array of housing needs throughout the state, including among lower-income populations.