Massachusetts Changes Income Tax Credits

first_imgMassachusetts modifies the brownfields credit and the community investment income tax credits.  Legislation changes the sunset dates and annual statewide caps for these credits available against both:corporate excise tax; andpersonal income tax.Sunset Date ExtensionsThe legislation extends the sunset dates for:the brownfields credit from January 1, 2019 to January 1, 2024; andthe community investment credit from December 31, 2019 to December 31, 2025.Applicants for the brownfields credit must start and pursue an environmental response action before August 5, 2023Annual Statewide Credit CapsThe legislation also:maintains the $20 million low-income income housing tax credit (LIHTC) cap until January 1, 2025;authorizes $5 million in LIHTCs to preserve and improve existing state or federally-assisted housing;increases the historic rehabilitation credit cap from $50 million to $55 million; andpreserves the $10 million certified housing credit cap until January 1, 2024.In addition, the legislation increases the community investment credit cap from $6 million in 2018 to:$8 million in tax years 2019 and 2020;$10 million in tax years 2021 and 2022; and$12 million in tax years from 2023 to 2025.The increase in the historic rehabilitation credit cap and the new LIHTC credit for state or federally-assisted housing take effect for tax years beginning on or after January 1, 2018Ch. 99 (H.B. 4536), Laws 2018, effective May 31, 2018 and as notedLogin to read more tax news on CCH® AnswerConnect or CCH® Intelliconnect®.Not a subscriber? Sign up for a free trial or contact us for a representative.last_img

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