Report Title:

Low Income Housing Tax Credit

 

Description:

Clarifies the term "credit period" for the purposes of the low income housing tax credit.

 


THE SENATE

S.B. NO.

1161

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO LOW INCOME HOUSING TAX CREDIT.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  Section 235-110.8, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

     "(e)  As provided in section 42(e), rehabilitation expenditures shall be treated as separate new building and their treatment under this section shall be the same as in section 42(e).  The definitions and special rules relating to credit period in section 42(f) and the definitions and special rules in section 42(i) shall be operative for the purposes of this section[.]; provided that in the case of any qualified low-income housing project placed in service beginning on January 1, 2009, section 42(f)(1) of the Internal Revenue Code shall be modified as follows:  the term "credit period" means, with respect to any building, the period of five taxable years beginning with:

     (1)  The taxable year in which the building is placed in service; or

     (2)  At the election of the taxpayer, the succeeding taxable year;

provided that the building is a qualified low-income building at of the close of the first year of such period.  The election under subparagraph (B) shall be irrevocable."

     SECTION 2.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 3.  This Act shall take effect on January 10, 2010 and apply to taxable years beginning after December 31, 2009.

 

INTRODUCED BY:

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