This bill amends the Income Tax Act of 1967 by adding new sections that establish a state low-income housing tax credit for qualified taxpayers. Starting from tax years beginning on or after January 1, 2027, eligible taxpayers can claim a credit equal to the amount allocated to them as indicated on their eligibility certificate and reported on the allocation form. To claim this credit, taxpayers must attach a copy of the allocation form to their annual tax return. The bill also outlines the conditions under which the credit can be recaptured if any portion of the federal credit for the same project is recaptured or disallowed.

Additionally, the bill specifies that the credit must be claimed after all other credits and that any unused portion can be carried forward for up to ten years. It defines key terms such as "qualified taxpayer," "allocation form," and "state low-income housing tax credit," ensuring clarity in the implementation of the new provisions. The enactment of this bill is contingent upon the passage of two other related bills in the 103rd Legislature.

Statutes affected:
Senate Introduced Bill: 206.1, 206.847
As Passed by the Senate: 206.1, 206.847