Partnerships may transfer housing tax credits to other taxpayers

A partnership or limited liability company allocated a credit may allocate it again or transfer, sell, or assign some or all of it to a taxpayer. This applies to a partner or member that is a partnership or limited liability company and has been allocated a credit. The receiving taxpayer may have no direct or indirect ownership stake in the low-income housing building. A partnership or limited liability company that transfers, sells, or assigns a credit must notify the Department of Taxation by the twentieth day of the first month after the tax year for which the credit may be claimed. A taxpayer receiving a credit may not allocate, transfer, sell, or assign it again. This applies to credits issued after July 1, 2026. The transferor's notice is due by the twentieth day of the first month after the tax year for which the credit may be claimed.

The text provides that specified amendments to the low-income housing tax credit law remain in place when the law is reenacted. This concerns the state low-income housing tax credit law. The text says the amendments made to the tax credit law in 2021 and by this act are not repealed upon reenactment. The reenactment date stated in the text is December 31, 2032.