Governor Tom Wolf recently signed legislation that established a Pennsylvania low-income housing tax credit (LIHTC)! S.B.30 creates this state tax credit, which is designed to encourage the development of quality affordable housing in Pennsylvania.
The Pennsylvania LIHTC will be administered by the Pennsylvania Housing Finance Agency and the Pennsylvania Department of Revenue. The requirements for the credits will follow the federal LIHTC.
There are some notable differences between the Pennsylvania and federal LIHTC. The Pennsylvania LIHTC will be taken over a 5-year credit period, as opposed to the 10-year credit period for the federal LIHTC. Additionally, the Pennsylvania LIHTC has a requirement that at least 10% of the credits be allocated for households with incomes at or below 30 percent of the area median income.
No more than 50 percent of a taxpayer’s state tax liability can be offset by the Pennsylvania LIHTC in any year.
McKonly & Asbury is a leader in accounting for affordable housing developments in Pennsylvania. IRS and PHFA regulations require specialized knowledge when accounting for LIHTC developments whether it’s performing a 10% Test or Development Cost Certification; or performing audits and preparing partnership tax returns. McKonly & Asbury’s team has the expertise and experience needed. To learn more about our Affordable Housing services, click here. And for more information, please contact us at firstname.lastname@example.org.