Landlords, participating; increases tax credit that may be issued.
Impact
The bill significantly increases the maximum amount of tax credits that may be issued per fiscal year, from $250,000 to $1 million starting July 1, 2023. This adjustment is aimed at promoting participation among landlords in the housing choice voucher program, thereby facilitating greater access to affordable housing options for low-income residents in Virginia. As such, the bill addresses issues related to housing affordability and seeks to enhance the financial viability of rental properties in eligible census tracts.
Summary
House Bill 1771 proposes amendments to the Code of Virginia concerning tax credits available to landlords who participate in a housing choice voucher program. Specifically, it enables participating landlords renting qualified housing units to claim a tax credit of 10% of the fair market value of the rent paid by tenants covered under the program. This credit applies to the portion of the taxable year during which the unit is rented and is set to be in effect for taxable years beginning on or after January 1, 2010, until January 1, 2025.
Contention
Points of contention around HB 1771 could arise from concerns about the long-term implications of increased tax credits for landlords. Critics may argue that while the bill promotes greater housing availability, it could also lead to a potential decrease in rental income for landlords, particularly if demand for housing does not keep pace with increased rental capacity facilitated by tax incentives. Additionally, scrutiny may center on whether the parameters for what constitutes an 'eligible census tract' are stringent enough to ensure that the benefits genuinely reach low-income families.
Income tax credit; providing credit to landlords for rental of dwellings to hard to house people; providing procedures; defining terms; prohibiting refundability of credit; authorizing carry forward of credit. Effective date.