How do I calculate the Iowa Workforce Housing Investment Tax Credit?
The Workforce Housing Tax Incentives Program replaced the Housing Enterprise Zone Program effective July 1, 2014, offering a tax credit on investment in housing related to acquisition, repair, or redevelopment of a housing project, or related to new construction of housing in a distressed workforce housing community. The project must be approved by the Iowa Economic Development Authority prior to investment.
The Workforce Housing Investment Tax Credit award is limited to 10% of $150,000 for each home or individual unit that is part of the housing project, or 20% of such amount if the housing project is located in a small city or certain declared disaster areas. The program contains other requirements related to qualifying housing projects and maximum tax incentives.
When the tax credit is awarded, the taxpayer receives a tax credit certificate number. Any tax credit in excess of tax liability can be carried forward and applied against tax liability for the following five years or until depleted, whichever is earlier.
If the tax credit is issued to a partnership, limited liability company, S corporation, estate, or trust, the tax credit shall be claimed by the individual based on the pro rata share of the income of the entity. The Workforce Housing Investment Tax Credit is transferable to any person or entity.
For Iowa income tax purposes, the increase in the basis of the housing property that would otherwise result from the qualified investment will be reduced by the amount of the tax credit received.
The Workforce Housing Investment Tax Credit award is limited to 10% of $150,000 for each home or individual unit that is part of the housing project, or 20% of such amount if the housing project is located in a small city or certain declared disaster areas. The program contains other requirements related to qualifying housing projects and maximum tax incentives.
When the tax credit is awarded, the taxpayer receives a tax credit certificate number. Any tax credit in excess of tax liability can be carried forward and applied against tax liability for the following five years or until depleted, whichever is earlier.
If the tax credit is issued to a partnership, limited liability company, S corporation, estate, or trust, the tax credit shall be claimed by the individual based on the pro rata share of the income of the entity. The Workforce Housing Investment Tax Credit is transferable to any person or entity.
For Iowa income tax purposes, the increase in the basis of the housing property that would otherwise result from the qualified investment will be reduced by the amount of the tax credit received.
