Pennsylvania Governor Approves PA Low Income Housing Credit

Date November 30, 2020
Article Authors
HBK CPAs & Consultants

Pennsylvania Governor, Tom Wolf, signed SB 30 which establishes the Pennsylvania Housing Credit. The credit will be managed by the Pennsylvania Housing Finance Agency. The Housing Tax Credit is established to encourage the development of qualified low-income housing projects in the Commonwealth.

The credit mirrors the Low-Income Housing Tax Credit offered at the Federal level. The credit can be taken against the following taxes.

  • Personal Income Tax
  • Corporate Net Income Tax
  • Bank and Trust Company Shares Tax
  • Title Insurance Companies Shares Tax
  • Insurance Premiums Tax
  • Gross Receipts Tax
  • Mutual Thrift Company Shares Tax

The amount claimed each year shall not exceed 50% of the taxpayer’s tax liability. Unused credits can be carried forward five years. The credit may be sold or passed through to a partnership’s or S Corporation’s owners. Any credits that are purchased or passed through must be used in the same tax year.

The agency is authorized to charge applicants a reasonable fee not to exceed 5% of the tax credit awarded for the administrative expenses of the agency for processing applications.

The amount of total credits allowed to be granted is not yet known. The Secretary of the Budget is required to submit a notice to the Legislative Reference Bureau.

If you have questions about the Pennsylvania Tax Credit, please contact your HBK advisor.

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