Institutional Federal Compliance Report 2021

78 • Notes to Basic Financial Statements __________________________________________________________________________ Program Name . . . . . . . . . . . . . . . . . . . . . . . . Low Income Housing Credit Program Purpose . . . . . . . . . . . . . . . . . . . . . . The program is designed to promote the development of and facilitate investment in low-income housing. Taxes being abated . . . . . . . . . . . . . . . . . . . . Personal income tax, Corporate franchise tax and Insurance tax. Authority under which abatements are entered into . . . . . . . . . . . . . . . . . . . . . State tax law: Article 22, Section 606(x) Article 9-A, Section 210-B(15) Article 33, Section 1511(n) Article 1, Section 18

Criteria to be eligible to receive abatements and commitment of the taxpayer . . . . . . . .

The participant makes a long-term commitment to offer low-income housing where the buildings must serve households whose incomes are at or below 90 percent of the area median income.

How taxes are reduced . . . . . . . . . . . . . . . . . Allowance of credit against taxes. Non-refundable credit, can be carried forward. How amount of abatement is determined . . . . The credit is determined by the Division of Housing and Community Renewal and depends on the applicable percentage of the qualified basis of each low-income building. The credit amount allocated is allowed as a credit for the next 10 tax years.

The State had additional tax abatement programs each amounting to $10 million or less in revenue estimated to be reduced in calendar year 2017. In total, these programs resulted in $14 million in esti- mated tax abatements. These include the Workers Provisions for recapturing abated taxes . . . . . N/A Type of commitments other than taxes . . . . . . N/A Total revenue estimated to be reduced for calendar year 2017 . . . . . . . . . $36 million

with Disabilities Tax Credits, the Employee Training Incentive Program, the Musical and Theatrical Pro- duction Credit, and the Historical Homeowners Reha- bilitation Tax Credit.