Pennsylvania Governor Approves PA Low Income Housing Credit

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.

About the Author(s)
Sue is a Senior Manager in the Pittsburgh, Pennsylvania office of HBK. She began her career in 1990 spending 14 years in public accounting followed by 14 years in government. Sue has extensive experience in state taxation and pass through entities. While working at the PA Department of Revenue, she was the Director of the Pass-Through Business Office for 11 years prior to being promoted to Deputy Secretary for Compliance and Collections. She is a member of the HBK’s Tax Advisory Group.
Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.