| Description |
The General Assembly enacted legislation to create a Virginia low-income housing tax credit for persons (individuals or any legal entity) providing rental-housing units in Virginia for occupancy by low-income households. The Virginia tax credit was developed to supplement the federal low-income housing tax credit (administered by the Virginia Housing Development Authority) and thereby provide a greater incentive to increase low-income housing opportunities in the Commonwealth. The state tax credit is administered by the Department of Housing and Community Development.
To qualify for the Virginia low-income housing tax credit, the applicant must qualify for and claim the federal low-income housing tax credit. The Virginia low-income housing tax credit is available for qualified housing units placed in service on or after January 1, 1998. A credit is available for up to five consecutive, taxable years, provided a federal low-income housing tax credit is allowed and claimed during each year the state credit is claimed.
The Board of Housing and Community Development adopts regulations for the allocation of this state tax credit. Beginning January 1, 2002, regulations require projects to compete for the statutorily limited amount of available tax credits. Projects will be awarded points based on the low-income housing needs they will serve. The projects receiving the highest point totals will be allocated tax credit authority.
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