Bill > SB2814

This bill establishes a new tax credit program for certain housing developments in Texas, specifically creating a mechanism for developers of low-income housing to receive annual tax credits against franchise or insurance premium taxes. The bill defines a "qualified development" as a housing project that meets specific criteria, including receiving federal low-income housing tax credits, maintaining affordable housing restrictions, and complying with accessibility and civil rights requirements. The Texas Department of Housing and Community Affairs will oversee the program, issuing allocation certificates that specify the annual tax credit amount for each qualified development during a 10-year credit period. The total state housing credit ceiling is set at $25 million annually, with credits allocated across developments financed through tax-exempt bonds and those not using such bonds. Taxable entities owning an interest in a qualified development can claim these credits, with the ability to carry forward unused credits for up to 10 consecutive tax years or carry back credits for up to three years. The program has a sunset provision, with the authority to allocate credits expiring on December 31, 2029, and the bill includes a special provision prioritizing $5 million in credits for certain qualified developments that received federal tax credits in 2021 or 2022 and meet specific land ownership and feasibility requirements.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2814