Texas Senate Bill SB1654

Texas 2021 - 87th Regular

Caption

Relating to a franchise or insurance tax credit for certain housing developments.

Impact

The implications of SB1654 include providing a financial incentive for entities to invest in low-income housing in Texas, which could potentially improve the availability of affordable housing. By allowing taxable entities to claim credits against their franchise and insurance taxes, the bill could encourage more developments that meet federal qualifications for low-income housing. This change aims to alleviate housing shortages in certain communities by promoting the construction and maintenance of affordable housing units.

Summary

SB1654 is a legislative bill aimed at introducing tax credits for certain housing developments within Texas. The bill seeks to amend Chapter 171 of the Tax Code to add provisions that establish a tax credit system for taxable entities that own interests in qualified developments. These developments must meet specific criteria to qualify for tax incentives, including adherence to federal and state housing regulations. The Texas Department of Housing and Community Affairs is designated as the main body for certifying eligible developments and overseeing the allocation of tax credits.

Contention

Notable points of contention surrounding SB1654 include discussions about the effectiveness of tax credits in genuinely enhancing affordable housing accessibility versus the risks of companies using these incentives primarily for profit without delivering affordable options to the community. Critics may argue that such tax credits could lead to abuses or misallocation of funds. Proponents, however, argue that these incentives are vital in promoting the construction of housing that low-income families can actually afford, thereby addressing the acute housing crisis in many areas of Texas.