{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-439.30.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-439.30.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-439.30.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-439.30.html"}],"law_id":57326,"edition_id":1,"section_id":57326,"structure_id":15035,"section_number":"58.1-439.30","catch_line":"Virginia housing opportunity tax credit","history":"2021, Sp. Sess. I, c. 495; 2022, Sp. Sess. I, cc. 2, 3; 2023, Sp. Sess. I, c. 1; 2025, c. 725.","full_text":"A\n\nSubject to the provisions of subsection H, a housing opportunity tax credit may be allowed for each qualified project for each year of the credit period, in an amount up to the amount of federal low-income housing tax credit allocated or allowed by the Authority to such qualified project. The credit shall be allowed ratably for each qualified project, with one-tenth of the total credit amount allowed annually for 10 years over the credit period, except that there shall be a reduction in the tax credit allowable in the first year of the credit period due to the calculation in 26 U.S.C. § 42(f)(2) and any reduction by reason of 26 U.S.C. § 42(f)(2) in the credit allowable for the first taxable year of the credit period shall be allowable for the first taxable year following the credit period.B\n\n1. For taxable years beginning on and after January 1, 2021, but before January 1, 2031, a qualified taxpayer may claim a housing opportunity tax credit against its Virginia tax liability prior to reduction by any other credits allowed the taxpayer. The housing opportunity tax credit may be allocated by pass-through entities to some or all of its partners, members, or shareholders in any manner agreed to by such persons, regardless of whether or not any such person is allocated or allowed any portion of any federal low-income housing tax credit with respect to the qualified project, whether or not the allocation of the housing opportunity tax credit under the terms of the agreement has substantial economic effect within the meaning of \u00a7 704(b) of the Internal Revenue Code, and whether any such person is deemed a partner for federal income tax purposes as long as the partner or member would be considered a partner or member as defined under applicable state law, and has been admitted as a partner or member on or prior to the date for filing the qualified taxpayer’s tax return, including any amendments thereto, with respect to the year of the housing opportunity tax credit. Such pass-through entities or qualified taxpayer may assign all or any part of its interest, including its interest in the tax credits, to one or more pass-through entities or qualified taxpayers, and the qualified taxpayer shall be able to claim the housing opportunity tax credit so long as its interest is acquired prior to the filing of its tax return claiming the housing opportunity tax credit.2\n\nIf a housing opportunity tax credit has been awarded according to the terms of subsection G prior to January 1, 2031, such credit may continue to be claimed on a return for taxable years on and after January 1, 2031, but only pursuant to the applicable credit period specified in § 58.1-439.29.C\n\nThe housing opportunity tax credit authorized by this article shall not be refundable. Any housing opportunity tax credit not used in a taxable year may be carried forward by a qualified taxpayer for the succeeding five years.D\n\nA qualified taxpayer claiming a housing opportunity tax credit shall submit a copy of the eligibility certificate at the time of filing its tax return with the Department. If the owner of the qualified project has applied to the Authority for the eligibility certificate but the Authority has not yet issued the eligibility certificate at the time the qualified taxpayer files its original tax return claiming the housing opportunity tax credit, the taxpayer may claim the housing opportunity tax credit based upon the amount of tax credit set forth in the award letter issued by the Authority for the housing opportunity tax credit issued to the qualified project and shall amend its tax return to include the eligibility certificate upon its receipt. If the amount of tax credit in the eligibility certificate is different than the amount of tax credit previously claimed, the taxpayer shall adjust the tax credit amount claimed on the amended tax return.E\n\nIf under § 42 of the Internal Revenue Code, as amended, a portion of any federal low-income housing credits taken on a qualified project is required to be recaptured or is otherwise disallowed during the credit period, the taxpayer claiming housing opportunity tax credits with respect to such project shall also be required to recapture a portion of any tax credits authorized by this article. The percentage of housing opportunity tax credits subject to recapture shall be equal to the percentage of federal low-income housing credits subject to recapture or otherwise disallowed during such period. Any tax credits recaptured or disallowed shall increase the income tax liability of the qualified taxpayer who claimed the tax credits in a like amount and shall be included on the tax return of the qualified taxpayer submitted for the taxable year in which the recapture or disallowance event is identified. The balance of any tax credits recaptured or disallowed shall be allocated by the Authority for any qualified project in accordance with subsection G.F\n\nThe Authority shall administer the housing opportunity tax credit program and shall be authorized to promulgate the regulations and guidelines necessary to implement and administer this article. Such regulations and guidelines may include the imposition of application, allocation, certification, and monitoring fees designed to recoup the costs of the Authority in administering the housing opportunity tax credit program.G\n\n1. Any housing opportunity tax credit amounts authorized in a calendar year that are subsequently (i) canceled and returned to the Authority or (ii) recaptured or disallowed pursuant to subsection E may be awarded in the following calendar year, but no later than December 31, 2030. If the amount of housing opportunity tax credits authorized in a calendar year for qualified projects is less than the total amount of credits available for qualified projects under subdivision H 2, the balance of such credits, in an amount not greater than 15 percent of the amount of credits available for qualified projects under subdivision H 2, (a) shall be allocated by the Authority for any qualified project in the following calendar year, (b) shall not be allocated at any time after such following calendar year, and (c) shall be allocated no later than December 31, 2030.2\n\nSuch housing opportunity tax credits issued pursuant to this subsection shall be allowed ratably, with one-tenth of the total amount of credits allowed annually for 10 years over the credit period, except that there shall be a reduction in the tax credit allowable in the first year of the credit period due to the calculation in 26 U.S.C. § 42(f)(2) and any reduction by reason of 26 U.S.C. § 42(f)(2) in the credit allowable for the first taxable year of the credit period shall be allowable for the first taxable year following the credit period.H\n\n1. Notwithstanding any other provision of law to the contrary, the aggregate amount of housing opportunity tax credits authorized for all qualified projects under this article shall not exceed $575 million across all calendar years.2\n\nThe total amount of housing opportunity tax credits authorized for qualified projects under this article shall not exceed $15 million for calendar year 2021.3\n\nFor calendar years 2022 through 2025, the total amount of housing opportunity tax credits authorized for qualified projects under this article shall not exceed $60 million per calendar year.4\n\nFor calendar years 2026 through 2030, the total amount of housing opportunity tax credits authorized for qualified projects under this article shall not exceed $64 million per calendar year.5\n\nSuch credits issued on and after January 1, 2022, shall be allowed ratably, with one-tenth of the total amount of credits allowed annually for 10 years over the credit period, except that there shall be a reduction in the tax credit allowable in the first year of the credit period due to the calculation in 26 U.S.C. § 42(f)(2) and any reduction by reason of 26 U.S.C. § 42(f)(2) in the credit allowable for the first taxable year of the credit period shall be allowable for the first taxable year following the credit period.I\n\nNotwithstanding any provision of law or regulation to the contrary, only Virginia housing opportunity tax credits awarded in calendar year 2021, up to a maximum of $15 million total for all taxpayers in all taxable years, may be claimed pursuant to the provisions of this section as set forth in Chapter 495 of the Acts of Assembly of 2021, Special Session I, prior to its amendment by the ninth enactment of Chapter 2 of the Acts of Assembly of 2022, Special Session I.J\n\nThe Authority shall, upon request from the Chairs of the House Committee on Appropriations, the House Committee on Finance, and the Senate Committee on Finance and Appropriations, provide information, data, and any other requested advisement on the potential structure and cost of a separately authorized certificated Virginia housing opportunity tax credit program that would allow a qualified project to sell all or any portion of its Virginia housing opportunity tax credits, to one or more unrelated taxpayers based on findings in the report of the Department of Housing and Community Development and the Authority stakeholder advisory group submitted pursuant to Chapter 517 of the Acts of Assembly of 2020.K\n\n1. Of the $60 million of Virginia housing opportunity tax credits authorized per calendar year from 2022 through 2025 for qualified projects by the Authority pursuant to this article, $20 million of such credits shall be first allocated exclusively for qualified projects located in a locality with a population no greater than 35,000 as determined by the most recent United States census.2\n\nOf the $64 million of Virginia housing opportunity tax credits authorized per calendar year from 2026 through 2030 for qualified projects by the Authority pursuant to this article, $20 million of such credits shall be reserved for qualified projects located in a geographic area within the Balance of State Pool. The Authority shall notify the Virginia Housing Commission upon any change to the Balance of State Pool.3\n\nSuch allocation of Virginia housing opportunity tax credits shall constitute the minimum amount of such tax credits to be allocated for qualified projects in such localities. However, if the amount of such tax credits requested for qualified projects in such localities is less than the total amount of such credits available for qualified projects in such localities, the balance of such credits shall be allocated for any qualified project, regardless of location. In allocating or allowing such credits to qualified projects in such localities, the Authority may give equal consideration to qualified projects allocated or allowed a federal low-income housing credit in an amount equal to the 10-year present value calculation of the percentages prescribed under 26 U.S.C. §§ 42(b)(1)(B)(i) and 42(b)(1)(B)(ii).","order_by":null,"text":{"0":{"id":209955,"text":"Subject to the provisions of subsection H, a housing opportunity tax credit may be allowed for each qualified project for each year of the credit period, in an amount up to the amount of federal low-income housing tax credit allocated or allowed by the Authority to such qualified project. The credit shall be allowed ratably for each qualified project, with one-tenth of the total credit amount allowed annually for 10 years over the credit period, except that there shall be a reduction in the tax credit allowable in the first year of the credit period due to the calculation in 26 U.S.C. § 42(f)(2) and any reduction by reason of 26 U.S.C. § 42(f)(2) in the credit allowable for the first taxable year of the credit period shall be allowable for the first taxable year following the credit period.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":209956,"text":"1. For taxable years beginning on and after January 1, 2021, but before January 1, 2031, a qualified taxpayer may claim a housing opportunity tax credit against its Virginia tax liability prior to reduction by any other credits allowed the taxpayer. The housing opportunity tax credit may be allocated by pass-through entities to some or all of its partners, members, or shareholders in any manner agreed to by such persons, regardless of whether or not any such person is allocated or allowed any portion of any federal low-income housing tax credit with respect to the qualified project, whether or not the allocation of the housing opportunity tax credit under the terms of the agreement has substantial economic effect within the meaning of \u00a7 704(b) of the Internal Revenue Code, and whether any such person is deemed a partner for federal income tax purposes as long as the partner or member would be considered a partner or member as defined under applicable state law, and has been admitted as a partner or member on or prior to the date for filing the qualified taxpayer’s tax return, including any amendments thereto, with respect to the year of the housing opportunity tax credit. Such pass-through entities or qualified taxpayer may assign all or any part of its interest, including its interest in the tax credits, to one or more pass-through entities or qualified taxpayers, and the qualified taxpayer shall be able to claim the housing opportunity tax credit so long as its interest is acquired prior to the filing of its tax return claiming the housing opportunity tax credit.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B2"},"2":{"id":209957,"text":"If a housing opportunity tax credit has been awarded according to the terms of subsection G prior to January 1, 2031, such credit may continue to be claimed on a return for taxable years on and after January 1, 2031, but only pursuant to the applicable credit period specified in § 58.1-439.29.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"C"},"3":{"id":209958,"text":"The housing opportunity tax credit authorized by this article shall not be refundable. Any housing opportunity tax credit not used in a taxable year may be carried forward by a qualified taxpayer for the succeeding five years.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2","next_prefix":"D"},"4":{"id":209959,"text":"A qualified taxpayer claiming a housing opportunity tax credit shall submit a copy of the eligibility certificate at the time of filing its tax return with the Department. If the owner of the qualified project has applied to the Authority for the eligibility certificate but the Authority has not yet issued the eligibility certificate at the time the qualified taxpayer files its original tax return claiming the housing opportunity tax credit, the taxpayer may claim the housing opportunity tax credit based upon the amount of tax credit set forth in the award letter issued by the Authority for the housing opportunity tax credit issued to the qualified project and shall amend its tax return to include the eligibility certificate upon its receipt. If the amount of tax credit in the eligibility certificate is different than the amount of tax credit previously claimed, the taxpayer shall adjust the tax credit amount claimed on the amended tax return.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"5":{"id":209960,"text":"If under § 42 of the Internal Revenue Code, as amended, a portion of any federal low-income housing credits taken on a qualified project is required to be recaptured or is otherwise disallowed during the credit period, the taxpayer claiming housing opportunity tax credits with respect to such project shall also be required to recapture a portion of any tax credits authorized by this article. The percentage of housing opportunity tax credits subject to recapture shall be equal to the percentage of federal low-income housing credits subject to recapture or otherwise disallowed during such period. Any tax credits recaptured or disallowed shall increase the income tax liability of the qualified taxpayer who claimed the tax credits in a like amount and shall be included on the tax return of the qualified taxpayer submitted for the taxable year in which the recapture or disallowance event is identified. The balance of any tax credits recaptured or disallowed shall be allocated by the Authority for any qualified project in accordance with subsection G.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"6":{"id":209961,"text":"The Authority shall administer the housing opportunity tax credit program and shall be authorized to promulgate the regulations and guidelines necessary to implement and administer this article. Such regulations and guidelines may include the imposition of application, allocation, certification, and monitoring fees designed to recoup the costs of the Authority in administering the housing opportunity tax credit program.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"7":{"id":209962,"text":"1. Any housing opportunity tax credit amounts authorized in a calendar year that are subsequently (i) canceled and returned to the Authority or (ii) recaptured or disallowed pursuant to subsection E may be awarded in the following calendar year, but no later than December 31, 2030. If the amount of housing opportunity tax credits authorized in a calendar year for qualified projects is less than the total amount of credits available for qualified projects under subdivision H 2, the balance of such credits, in an amount not greater than 15 percent of the amount of credits available for qualified projects under subdivision H 2, (a) shall be allocated by the Authority for any qualified project in the following calendar year, (b) shall not be allocated at any time after such following calendar year, and (c) shall be allocated no later than December 31, 2030.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"G2"},"8":{"id":209963,"text":"Such housing opportunity tax credits issued pursuant to this subsection shall be allowed ratably, with one-tenth of the total amount of credits allowed annually for 10 years over the credit period, except that there shall be a reduction in the tax credit allowable in the first year of the credit period due to the calculation in 26 U.S.C. § 42(f)(2) and any reduction by reason of 26 U.S.C. § 42(f)(2) in the credit allowable for the first taxable year of the credit period shall be allowable for the first taxable year following the credit period.","type":"section","prefixes":["G","2"],"prefix":"2","entire_prefix":"G2","prefix_anchor":"G2","level":2,"prior_prefix":"G","next_prefix":"H"},"9":{"id":209964,"text":"1. Notwithstanding any other provision of law to the contrary, the aggregate amount of housing opportunity tax credits authorized for all qualified projects under this article shall not exceed $575 million across all calendar years.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G2","next_prefix":"H2"},"10":{"id":209965,"text":"The total amount of housing opportunity tax credits authorized for qualified projects under this article shall not exceed $15 million for calendar year 2021.","type":"section","prefixes":["H","2"],"prefix":"2","entire_prefix":"H2","prefix_anchor":"H2","level":2,"prior_prefix":"H","next_prefix":"H3"},"11":{"id":209966,"text":"For calendar years 2022 through 2025, the total amount of housing opportunity tax credits authorized for qualified projects under this article shall not exceed $60 million per calendar year.","type":"section","prefixes":["H","3"],"prefix":"3","entire_prefix":"H3","prefix_anchor":"H3","level":2,"prior_prefix":"H2","next_prefix":"H4"},"12":{"id":209967,"text":"For calendar years 2026 through 2030, the total amount of housing opportunity tax credits authorized for qualified projects under this article shall not exceed $64 million per calendar year.","type":"section","prefixes":["H","4"],"prefix":"4","entire_prefix":"H4","prefix_anchor":"H4","level":2,"prior_prefix":"H3","next_prefix":"H5"},"13":{"id":209968,"text":"Such credits issued on and after January 1, 2022, shall be allowed ratably, with one-tenth of the total amount of credits allowed annually for 10 years over the credit period, except that there shall be a reduction in the tax credit allowable in the first year of the credit period due to the calculation in 26 U.S.C. § 42(f)(2) and any reduction by reason of 26 U.S.C. § 42(f)(2) in the credit allowable for the first taxable year of the credit period shall be allowable for the first taxable year following the credit period.","type":"section","prefixes":["H","5"],"prefix":"5","entire_prefix":"H5","prefix_anchor":"H5","level":2,"prior_prefix":"H4","next_prefix":"I"},"14":{"id":209969,"text":"Notwithstanding any provision of law or regulation to the contrary, only Virginia housing opportunity tax credits awarded in calendar year 2021, up to a maximum of $15 million total for all taxpayers in all taxable years, may be claimed pursuant to the provisions of this section as set forth in Chapter 495 of the Acts of Assembly of 2021, Special Session I, prior to its amendment by the ninth enactment of Chapter 2 of the Acts of Assembly of 2022, Special Session I.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H5","next_prefix":"J"},"15":{"id":209970,"text":"The Authority shall, upon request from the Chairs of the House Committee on Appropriations, the House Committee on Finance, and the Senate Committee on Finance and Appropriations, provide information, data, and any other requested advisement on the potential structure and cost of a separately authorized certificated Virginia housing opportunity tax credit program that would allow a qualified project to sell all or any portion of its Virginia housing opportunity tax credits, to one or more unrelated taxpayers based on findings in the report of the Department of Housing and Community Development and the Authority stakeholder advisory group submitted pursuant to Chapter 517 of the Acts of Assembly of 2020.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I","next_prefix":"K"},"16":{"id":209971,"text":"1. Of the $60 million of Virginia housing opportunity tax credits authorized per calendar year from 2022 through 2025 for qualified projects by the Authority pursuant to this article, $20 million of such credits shall be first allocated exclusively for qualified projects located in a locality with a population no greater than 35,000 as determined by the most recent United States census.","type":"section","prefixes":["K"],"prefix":"K","entire_prefix":"K","prefix_anchor":"K","level":1,"prior_prefix":"J","next_prefix":"K2"},"17":{"id":209972,"text":"Of the $64 million of Virginia housing opportunity tax credits authorized per calendar year from 2026 through 2030 for qualified projects by the Authority pursuant to this article, $20 million of such credits shall be reserved for qualified projects located in a geographic area within the Balance of State Pool. The Authority shall notify the Virginia Housing Commission upon any change to the Balance of State Pool.","type":"section","prefixes":["K","2"],"prefix":"2","entire_prefix":"K2","prefix_anchor":"K2","level":2,"prior_prefix":"K","next_prefix":"K3"},"18":{"id":209973,"text":"Such allocation of Virginia housing opportunity tax credits shall constitute the minimum amount of such tax credits to be allocated for qualified projects in such localities. However, if the amount of such tax credits requested for qualified projects in such localities is less than the total amount of such credits available for qualified projects in such localities, the balance of such credits shall be allocated for any qualified project, regardless of location. In allocating or allowing such credits to qualified projects in such localities, the Authority may give equal consideration to qualified projects allocated or allowed a federal low-income housing credit in an amount equal to the 10-year present value calculation of the percentages prescribed under 26 U.S.C. §§ 42(b)(1)(B)(i) and 42(b)(1)(B)(ii).","type":"section","prefixes":["K","3"],"prefix":"3","entire_prefix":"K3","prefix_anchor":"K3","level":2,"prior_prefix":"K2"}},"ancestry":[{"id":15035,"edition_id":1,"name":"Virginia Housing Opportunity Tax Credit Act","identifier":"13.4","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:51:40","date_modified":"2026-06-26 03:51:40","permalink":{"id":253709,"object_type":"structure","relational_id":15035,"identifier":"13.4","token":"58.1\/I\/3\/13.4","url":"\/58.1\/I\/3\/13.4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":63459,"structure_id":15035,"section_number":"58.1-439.29","catch_line":"Definitions","url":"\/58.1-439.29\/","token":"58.1\/I\/3\/13.4\/58.1-439.29","metadata":false},{"id":57326,"structure_id":15035,"section_number":"58.1-439.30","catch_line":"Virginia housing opportunity tax credit","url":"\/58.1-439.30\/","token":"58.1\/I\/3\/13.4\/58.1-439.30","metadata":false}],"previous_section":{"id":63459,"structure_id":15035,"section_number":"58.1-439.29","catch_line":"Definitions","url":"\/58.1-439.29\/","token":"58.1\/I\/3\/13.4\/58.1-439.29","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-439.30\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2025, chapter 725<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":253715,"object_type":"law","relational_id":57326,"identifier":"58.1-439.30","token":"58.1\/I\/3\/13.4\/58.1-439.30","url":"\/58.1-439.30\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-439.30\/","token":"58.1\/I\/3\/13.4\/58.1-439.30","dublin_core":{"Title":"Virginia housing opportunity tax credit","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-439.30","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Subject to the provisions of subsection H, a housing opportunity tax credit<\/span> may be allowed for each qualified project<\/span> for each year of the credit period<\/span>, in an amount up to the amount of federal low-income housing tax credit<\/span> allocated or allowed by the Authority<\/span> to such qualified project<\/span>. The credit shall be allowed ratably for each qualified project<\/span>, with one-tenth of the total credit amount allowed annually for 10 years over the credit period<\/span>, except that there shall be a reduction in the tax credit allowable in the first year of the credit period<\/span> due to the calculation in 26 U.S.C. § 42(f)(2) and any reduction by reason of 26 U.S.C. § 42(f)(2) in the credit allowable for the first taxable year of the credit period<\/span> shall be allowable for the first taxable year following the credit period<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. For taxable years beginning on and after January 1, 2021, but before January 1, 2031, a qualified taxpayer<\/span> may claim a housing opportunity tax credit<\/span> against its Virginia tax liability<\/span> prior to reduction by any other credits allowed the taxpayer. The housing opportunity tax credit<\/span> may be allocated by pass-through entities to some or all of its partners, members, or shareholders in any manner agreed to by such persons, regardless of whether or not any such person is allocated or allowed any portion of any federal low-income housing tax credit<\/span> with respect to the qualified project<\/span>, whether or not the allocation of the housing opportunity tax credit<\/span> under the terms of the agreement has substantial economic effect within the meaning of \u00a7 704(b) of the Internal Revenue Code, and whether any such person is deemed a partner for federal income tax purposes as long as the partner or member would be considered a partner or member as defined under applicable state law<\/span>, and has been admitted as a partner or member on or prior to the date for filing the qualified taxpayer<\/span>’s tax return, including any amendments thereto, with respect to the year of the housing opportunity tax credit<\/span>. Such pass-through entities or qualified taxpayer<\/span> may assign all or any part of its interest, including its interest in the tax credits<\/span>, to one or more pass-through entities or qualified taxpayers<\/span>, and the qualified taxpayer<\/span> shall be able to claim the housing opportunity tax credit<\/span> so long as its interest is acquired prior to the filing of its tax return claiming the housing opportunity tax credit<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If a housing opportunity tax credit<\/span> has been awarded according to the terms of subsection G prior to January 1, 2031, such credit may continue to be claimed on a return for taxable years on and after January 1, 2031, but only pursuant to the applicable credit period<\/span> specified in § 58.1-439.29<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The housing opportunity tax credit<\/span> authorized by this article shall not be refundable. Any housing opportunity tax credit<\/span> not used in a taxable year may be carried forward by a qualified taxpayer<\/span> for the succeeding five years. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> A qualified taxpayer<\/span> claiming a housing opportunity tax credit<\/span> shall submit a copy of the eligibility certificate<\/span> at the time of filing its tax return with the Department<\/span>. If the owner of the qualified project<\/span> has applied to the Authority<\/span> for the eligibility certificate<\/span> but the Authority<\/span> has not yet issued the eligibility certificate<\/span> at the time the qualified taxpayer<\/span> files its original tax return claiming the housing opportunity tax credit<\/span>, the taxpayer may claim the housing opportunity tax credit<\/span> based upon the amount of tax credit set forth in the award letter issued by the Authority<\/span> for the housing opportunity tax credit<\/span> issued to the qualified project<\/span> and shall amend<\/span> its tax return to include the eligibility certificate<\/span> upon its receipt. If the amount of tax credit in the eligibility certificate<\/span> is different than the amount of tax credit previously claimed, the taxpayer shall adjust the tax credit amount claimed on the amended tax return. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> If under § 42 of the Internal Revenue Code, as amended, a portion of any federal low-income housing credits taken on a qualified project<\/span> is required to be recaptured or is otherwise disallowed during the credit period<\/span>, the taxpayer claiming housing opportunity tax credits<\/span> with respect to such project shall also be required to recapture a portion of any tax credits authorized by this article. The percentage of housing opportunity tax credits<\/span> subject to recapture shall be equal to the percentage of federal low-income housing credits subject to recapture or otherwise disallowed during such period. Any tax credits recaptured or disallowed shall increase the income tax liability of the qualified taxpayer<\/span> who claimed the tax credits in a like amount and shall be included on the tax return of the qualified taxpayer<\/span> submitted for the taxable year in which the recapture or disallowance event is identified. The balance of any tax credits recaptured or disallowed shall be allocated by the Authority<\/span> for any qualified project<\/span> in accordance with subsection G. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The Authority<\/span> shall administer the housing opportunity tax credit<\/span> program and shall be authorized to promulgate the regulations and guidelines necessary to implement and administer this article. Such regulations and guidelines may include the imposition of application, allocation, certification, and monitoring fees designed to recoup the costs of the Authority<\/span> in administering the housing opportunity tax credit<\/span> program. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> 1. Any housing opportunity tax credit<\/span> amounts authorized in a calendar year that are subsequently (i) canceled and returned to the Authority<\/span> or (ii) recaptured or disallowed pursuant to subsection E may be awarded in the following calendar year, but no later than December 31, 2030. If the amount of housing opportunity tax credits<\/span> authorized in a calendar year for qualified projects<\/span> is less than the total amount of credits available for qualified projects<\/span> under subdivision H 2, the balance of such credits, in an amount not greater than 15 percent of the amount of credits available for qualified projects<\/span> under subdivision H 2, (a) shall be allocated by the Authority<\/span> for any qualified project<\/span> in the following calendar year, (b) shall not be allocated at any time after such following calendar year, and (c) shall be allocated no later than December 31, 2030. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Such housing opportunity tax credits<\/span> issued pursuant to this subsection shall be allowed ratably, with one-tenth of the total amount of credits allowed annually for 10 years over the credit period<\/span>, except that there shall be a reduction in the tax credit allowable in the first year of the credit period<\/span> due to the calculation in 26 U.S.C. § 42(f)(2) and any reduction by reason of 26 U.S.C. § 42(f)(2) in the credit allowable for the first taxable year of the credit period<\/span> shall be allowable for the first taxable year following the credit period<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> 1. Notwithstanding any other provision of law<\/span> to the contrary, the aggregate amount of housing opportunity tax credits<\/span> authorized for all qualified projects<\/span> under this article shall not exceed $575 million across all calendar years. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The total amount of housing opportunity tax credits<\/span> authorized for qualified projects<\/span> under this article shall not exceed $15 million for calendar year 2021. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> For calendar years 2022 through 2025, the total amount of housing opportunity tax credits<\/span> authorized for qualified projects<\/span> under this article shall not exceed $60 million per calendar year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> For calendar years 2026 through 2030, the total amount of housing opportunity tax credits<\/span> authorized for qualified projects<\/span> under this article shall not exceed $64 million per calendar year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Such credits issued on and after January 1, 2022, shall be allowed ratably, with one-tenth of the total amount of credits allowed annually for 10 years over the credit period<\/span>, except that there shall be a reduction in the tax credit allowable in the first year of the credit period<\/span> due to the calculation in 26 U.S.C. § 42(f)(2) and any reduction by reason of 26 U.S.C. § 42(f)(2) in the credit allowable for the first taxable year of the credit period<\/span> shall be allowable for the first taxable year following the credit period<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> Notwithstanding any provision of law<\/span> or regulation to the contrary, only Virginia housing opportunity tax credits<\/span> awarded in calendar year 2021, up to a maximum of $15 million total for all taxpayers in all taxable years, may be claimed pursuant to the provisions of this section as set forth in Chapter 495 of the Acts of Assembly of 2021, Special Session I, prior to its amendment by the ninth enactment of Chapter 2 of the Acts of Assembly of 2022, Special Session I. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> The Authority<\/span> shall, upon request from the Chairs of the House Committee on Appropriations, the House Committee on Finance, and the Senate Committee on Finance and Appropriations, provide information, data, and any other requested advisement on the potential structure and cost of a separately authorized certificated Virginia housing opportunity tax credit<\/span> program that would allow a qualified project<\/span> to sell all or any portion of its Virginia housing opportunity tax credits<\/span>, to one or more unrelated taxpayers based on findings<\/span> in the report of the Department<\/span> of Housing and Community Development and the Authority<\/span> stakeholder advisory group submitted pursuant to Chapter 517 of the Acts of Assembly of 2020. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

K.<\/span> 1. Of the $60 million of Virginia housing opportunity tax credits<\/span> authorized per calendar year from 2022 through 2025 for qualified projects<\/span> by the Authority<\/span> pursuant to this article, $20 million of such credits shall be first allocated exclusively for qualified projects<\/span> located in a locality with a population no greater than 35,000 as determined by the most recent United States census. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Of the $64 million of Virginia housing opportunity tax credits<\/span> authorized per calendar year from 2026 through 2030 for qualified projects<\/span> by the Authority<\/span> pursuant to this article, $20 million of such credits shall be reserved for qualified projects<\/span> located in a geographic area within the Balance of State Pool<\/span>. The Authority<\/span> shall notify the Virginia Housing Commission upon any change to the Balance of State Pool<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Such allocation of Virginia housing opportunity tax credits<\/span> shall constitute the minimum amount of such tax credits to be allocated for qualified projects<\/span> in such localities. However, if the amount of such tax credits requested for qualified projects<\/span> in such localities is less than the total amount of such credits available for qualified projects<\/span> in such localities, the balance of such credits shall be allocated for any qualified project<\/span>, regardless of location. In allocating or allowing such credits to qualified projects<\/span> in such localities, the Authority<\/span> may give equal consideration to qualified projects<\/span> allocated or allowed a federal low-income housing credit in an amount equal to the 10-year present value calculation of the percentages prescribed under 26 U.S.C. §§ 42(b)(1)(B)(i) and 42(b)(1)(B)(ii). <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nVIRGINIA HOUSING OPPORTUNITY TAX CREDIT (\u00a7 58.1-439.30)\n\nA. Subject to the provisions of subsection H, a housing opportunity tax credit\nmay be allowed for each qualified project for each year of the credit period, in\nan amount up to the amount of federal low-income housing tax credit allocated or\nallowed by the Authority to such qualified project. The credit shall be allowed\nratably for each qualified project, with one-tenth of the total credit amount\nallowed annually for 10 years over the credit period, except that there shall be\na reduction in the tax credit allowable in the first year of the credit period\ndue to the calculation in 26 U.S.C. § 42(f)(2) and any reduction by reason\nof 26 U.S.C. § 42(f)(2) in the credit allowable for the first taxable year\nof the credit period shall be allowable for the first taxable year following the\ncredit period.\n\nB. 1. For taxable years beginning on and after January 1, 2021, but before\nJanuary 1, 2031, a qualified taxpayer may claim a housing opportunity tax credit\nagainst its Virginia tax liability prior to reduction by any other credits\nallowed the taxpayer. The housing opportunity tax credit may be allocated by\npass-through entities to some or all of its partners, members, or shareholders\nin any manner agreed to by such persons, regardless of whether or not any such\nperson is allocated or allowed any portion of any federal low-income housing tax\ncredit with respect to the qualified project, whether or not the allocation of\nthe housing opportunity tax credit under the terms of the agreement has\nsubstantial economic effect within the meaning of \u00a7 704(b) of the Internal\nRevenue Code, and whether any such person is deemed a partner for federal income\ntax purposes as long as the partner or member would be considered a partner or\nmember as defined under applicable state law, and has been admitted as a partner\nor member on or prior to the date for filing the qualified taxpayer’s tax\nreturn, including any amendments thereto, with respect to the year of the\nhousing opportunity tax credit. Such pass-through entities or qualified taxpayer\nmay assign all or any part of its interest, including its interest in the tax\ncredits, to one or more pass-through entities or qualified taxpayers, and the\nqualified taxpayer shall be able to claim the housing opportunity tax credit so\nlong as its interest is acquired prior to the filing of its tax return claiming\nthe housing opportunity tax credit.\n\n 2. If a housing opportunity tax credit has been awarded according to the terms\n of subsection G prior to January 1, 2031, such credit may continue to be\n claimed on a return for taxable years on and after January 1, 2031, but only\n pursuant to the applicable credit period specified in § 58.1-439.29.\n\nC. The housing opportunity tax credit authorized by this article shall not be\nrefundable. Any housing opportunity tax credit not used in a taxable year may be\ncarried forward by a qualified taxpayer for the succeeding five years.\n\nD. A qualified taxpayer claiming a housing opportunity tax credit shall submit a\ncopy of the eligibility certificate at the time of filing its tax return with\nthe Department. If the owner of the qualified project has applied to the\nAuthority for the eligibility certificate but the Authority has not yet issued\nthe eligibility certificate at the time the qualified taxpayer files its\noriginal tax return claiming the housing opportunity tax credit, the taxpayer\nmay claim the housing opportunity tax credit based upon the amount of tax credit\nset forth in the award letter issued by the Authority for the housing\nopportunity tax credit issued to the qualified project and shall amend its tax\nreturn to include the eligibility certificate upon its receipt. If the amount of\ntax credit in the eligibility certificate is different than the amount of tax\ncredit previously claimed, the taxpayer shall adjust the tax credit amount\nclaimed on the amended tax return.\n\nE. If under § 42 of the Internal Revenue Code, as amended, a portion of any\nfederal low-income housing credits taken on a qualified project is required to\nbe recaptured or is otherwise disallowed during the credit period, the taxpayer\nclaiming housing opportunity tax credits with respect to such project shall also\nbe required to recapture a portion of any tax credits authorized by this\narticle. The percentage of housing opportunity tax credits subject to recapture\nshall be equal to the percentage of federal low-income housing credits subject\nto recapture or otherwise disallowed during such period. Any tax credits\nrecaptured or disallowed shall increase the income tax liability of the\nqualified taxpayer who claimed the tax credits in a like amount and shall be\nincluded on the tax return of the qualified taxpayer submitted for the taxable\nyear in which the recapture or disallowance event is identified. The balance of\nany tax credits recaptured or disallowed shall be allocated by the Authority for\nany qualified project in accordance with subsection G.\n\nF. The Authority shall administer the housing opportunity tax credit program and\nshall be authorized to promulgate the regulations and guidelines necessary to\nimplement and administer this article. Such regulations and guidelines may\ninclude the imposition of application, allocation, certification, and monitoring\nfees designed to recoup the costs of the Authority in administering the housing\nopportunity tax credit program.\n\nG. 1. Any housing opportunity tax credit amounts authorized in a calendar year\nthat are subsequently (i) canceled and returned to the Authority or (ii)\nrecaptured or disallowed pursuant to subsection E may be awarded in the\nfollowing calendar year, but no later than December 31, 2030. If the amount of\nhousing opportunity tax credits authorized in a calendar year for qualified\nprojects is less than the total amount of credits available for qualified\nprojects under subdivision H 2, the balance of such credits, in an amount not\ngreater than 15 percent of the amount of credits available for qualified\nprojects under subdivision H 2, (a) shall be allocated by the Authority for any\nqualified project in the following calendar year, (b) shall not be allocated at\nany time after such following calendar year, and (c) shall be allocated no later\nthan December 31, 2030.\n\n 2. Such housing opportunity tax credits issued pursuant to this subsection\n shall be allowed ratably, with one-tenth of the total amount of credits\n allowed annually for 10 years over the credit period, except that there shall\n be a reduction in the tax credit allowable in the first year of the credit\n period due to the calculation in 26 U.S.C. § 42(f)(2) and any reduction\n by reason of 26 U.S.C. § 42(f)(2) in the credit allowable for the first\n taxable year of the credit period shall be allowable for the first taxable\n year following the credit period.\n\nH. 1. Notwithstanding any other provision of law to the contrary, the aggregate\namount of housing opportunity tax credits authorized for all qualified projects\nunder this article shall not exceed $575 million across all calendar years.\n\n 2. The total amount of housing opportunity tax credits authorized for\n qualified projects under this article shall not exceed $15 million for\n calendar year 2021.\n\n 3. For calendar years 2022 through 2025, the total amount of housing\n opportunity tax credits authorized for qualified projects under this article\n shall not exceed $60 million per calendar year.\n\n 4. For calendar years 2026 through 2030, the total amount of housing\n opportunity tax credits authorized for qualified projects under this article\n shall not exceed $64 million per calendar year.\n\n 5. Such credits issued on and after January 1, 2022, shall be allowed ratably,\n with one-tenth of the total amount of credits allowed annually for 10 years\n over the credit period, except that there shall be a reduction in the tax\n credit allowable in the first year of the credit period due to the calculation\n in 26 U.S.C. § 42(f)(2) and any reduction by reason of 26 U.S.C. §\n 42(f)(2) in the credit allowable for the first taxable year of the credit\n period shall be allowable for the first taxable year following the credit\n period.\n\nI. Notwithstanding any provision of law or regulation to the contrary, only\nVirginia housing opportunity tax credits awarded in calendar year 2021, up to a\nmaximum of $15 million total for all taxpayers in all taxable years, may be\nclaimed pursuant to the provisions of this section as set forth in Chapter 495\nof the Acts of Assembly of 2021, Special Session I, prior to its amendment by\nthe ninth enactment of Chapter 2 of the Acts of Assembly of 2022, Special\nSession I.\n\nJ. The Authority shall, upon request from the Chairs of the House Committee on\nAppropriations, the House Committee on Finance, and the Senate Committee on\nFinance and Appropriations, provide information, data, and any other requested\nadvisement on the potential structure and cost of a separately authorized\ncertificated Virginia housing opportunity tax credit program that would allow a\nqualified project to sell all or any portion of its Virginia housing opportunity\ntax credits, to one or more unrelated taxpayers based on findings in the report\nof the Department of Housing and Community Development and the Authority\nstakeholder advisory group submitted pursuant to Chapter 517 of the Acts of\nAssembly of 2020.\n\nK. 1. Of the $60 million of Virginia housing opportunity tax credits authorized\nper calendar year from 2022 through 2025 for qualified projects by the Authority\npursuant to this article, $20 million of such credits shall be first allocated\nexclusively for qualified projects located in a locality with a population no\ngreater than 35,000 as determined by the most recent United States census.\n\n 2. Of the $64 million of Virginia housing opportunity tax credits authorized\n per calendar year from 2026 through 2030 for qualified projects by the\n Authority pursuant to this article, $20 million of such credits shall be\n reserved for qualified projects located in a geographic area within the\n Balance of State Pool. The Authority shall notify the Virginia Housing\n Commission upon any change to the Balance of State Pool.\n\n 3. Such allocation of Virginia housing opportunity tax credits shall\n constitute the minimum amount of such tax credits to be allocated for\n qualified projects in such localities. However, if the amount of such tax\n credits requested for qualified projects in such localities is less than the\n total amount of such credits available for qualified projects in such\n localities, the balance of such credits shall be allocated for any qualified\n project, regardless of location. In allocating or allowing such credits to\n qualified projects in such localities, the Authority may give equal\n consideration to qualified projects allocated or allowed a federal low-income\n housing credit in an amount equal to the 10-year present value calculation of\n the percentages prescribed under 26 U.S.C. §§ 42(b)(1)(B)(i) and\n 42(b)(1)(B)(ii).\n\nHISTORY: 2021, Sp. Sess. I, c. 495; 2022, Sp. Sess. I, cc. 2, 3; 2023, Sp. Sess.\nI, c. 1; 2025, c. 725.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}