Committee approves rules substitute to Senate Bill 306 clarifying low-income housing tax-credit awards

The Chair called for and put a motion to approve a rules substitute to Senate Bill 306, LC 443555 S, clarifying how low-income housing tax credits are articulated in state code. A lawmaker presenting the substitute said the change replaces the word 'allowed' with 'initially awarded' to make clear that the Department of Community Affairs (DCA) issues credits for each taxable year of a 10-year stream.

The change "makes it very clear in regard to the awards coming out from DCA," the lawmaker said, adding that the revision does not change statutory caps but clarifies how industry and agencies should interpret award timing. The presenter noted that the credits are "awarded for a first year for a 10 year period" and that in practice some awarded credits do not take effect when projects fail to be built or properly leased under federal law.

A committee member asked whether the wording effectively allows $100 million per year (and thus up to $1 billion over 10 years). The sponsor responded that the wording reflects the original intent to show annual awards and that industry practice and federal requirements limit how much of an awarded stream is ultimately realized.

After discussion the committee moved, seconded and held a voice vote. The Chair declared the substitute approved based on the voice vote recorded in the transcript. The transcript records members saying 'Aye' and 'No' during the voice vote; individual tallies are not clear in the record provided.

The committee then placed the bill on today's calendar under the structured procedure. No implementation dates or amendments were specified during the discussion; the presenter said the language change had been made recently and was requested by industry stakeholders and DCA staff."