Nevada 2019 Regular Session Status: Enacted

SB 448 — Provides for transferable tax credits for affordable housing in this State. (BDR 32-381)

Last action — Chapter 594.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 25, 2019. Enacted.

Prognosis

Advancing 50% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

AN ACT relating to taxation; providing for the issuance of transferable tax credits to a project for the acquisition, development, construction, improvement, expansion, reconstruction or rehabilitation of low-income housing; and providing other matters properly relating thereto.

Bill Text

What changed in the latest version

361 added · 377 removed

361 line(s) added, 377 removed.

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(Reprinted with amendments adopted on April 22, 2019) FIRST REPRINT S.B.
Senate Bill No.
448 SENATE B ILLN O.
448–Committee on Revenue and Economic Development CHAPTER..........
448–COMMITTEE ON REVENUE AND ECONOMIC D EVELOPMENT (ON BEHALF OF THE COMMITTEE TO STUDY ISSUES R EGARDING A FFORDABLE H OUSING ) M ARCH 25, 2019 ____________ Referred to Committee on Revenue and Economic Development SUMMARY—Provides for transferable tax credits for affordable housing in this State.
(BDR 32-381) FISCAL NOTE:
Effect on Local Government:
No.
Effect on the State:
Yes.
~ EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
Existing federal law establishes a federal income tax credit in an amount equal Under existing federal law, to be eligible for this credit, a project is required to meet certain criteria and be a residential rental project for which:
Existing federal law establishes a federal income tax credit in an amount equal to a certain percentage of the costs of constructing a low-income housing project.
Under existing federal law, to be eligible for this credit, a project is required to meet certain criteria and be a residential rental project for which:
(2) require the Housing Division to develop and publish a qualified allocation plan that sets forth the priorities of this State for the allocation of federal an allocation of federal low-income housing tax credits;
(2) require the Housing Division to develop and publish a qualified allocation plan that sets forth the priorities of this State for the allocation of federal low-income housing tax credits and the criteria for selecting applicants to receive an allocation of federal low-income housing tax credits;
and (3) require thereceive - *SB448_R1* – 2 – Housing Division to allocate and distribute federal low-income housing tax credits to applicants who comply with the qualified allocation plan and qualify to receive such credits in accordance with the plan.
and (3) require the Housing Division to allocate and distribute federal low-income housing tax credits to applicants who comply with the qualified allocation plan and qualify to receive suchThis bill authorizes the Housing Division of the Department of Business and Industry to issue transferable tax credits that are authorized to be taken against certain state taxes to the sponsor of a project for the acquisition, development, construction, improvement, expansion, reconstruction or rehabilitation of low- income housing, as defined by existing federal law.
(NRS 319.145;
Section 9 of this bill authorizes the sponsor of such a project to apply on behalf of the project for the issuance of transferable tax credits.
NAC 319.951-319.998) This bill authorizes the Housing Division of the Department of Business and Industry to issue transferable tax credits that are authorized to be taken against certain state taxes to the sponsor of a project for the acquisition, development, construction, improvement, expansion, reconstruction or rehabilitation of low- the sponsor of such a project to apply on behalf of the project for the issuance ofes transferable tax credits.
Section 9 further authorizes the Housing Division to approve such an application if the project sponsor complies with the requirements of the qualified allocation plan for the allocation and distribution of federal low- on the rent charged to occupy a unit in the project and other conditions for thections issuance of transferable tax credits has been recorded in the office of the county recorder of the county in which the project is located.
Section 9 further authorizes the Housing Division to approve such an application if the project sponsor complies with the requirements of the qualified allocation plan for the allocation and distribution of federal low- income housing tax credits and a declaration setting forth the applicable restrictions on the rent charged to occupy a unit in the project and other conditions for the issuance of transferable tax credits has been recorded in the office of the county recorder of the county in which the project is located.
Under section 9, the transferable tax credits are awarded based on the amount of transferable tax credit threshold points awarded to a project and in accordance with the procedure set forth in the qualified allocation plan.
Under section 9, the transferable tax credits are awarded based on the amount of transferable tax credit threshold points awarded to a project and in accordance with the procedure set forth may be applied to:
The transferable tax credits authorized by section 9 may be applied to:
(1) the excise tax on banks and payroll taxes imposed byy section 9 chapters 363A and 363B of NRS;
(1) the excise tax on banks and payroll taxes imposed by chapters 363A and 363B of NRS;
Section 10 of this bill limits to $10,000,000 the amount of transferable tax credits which the Housing Division is authorized to approve in each fiscal year and prohibits the Housing Division from approving applications and issuing transferable tax credits for any fiscal year beginning on or after July 1, 2023.
- 80th Session (2019) – 2 – Section 10 of this bill limits to $10,000,000 the amount of transferable tax credits which the Housing Division is authorized to approve in each fiscal year and transferable tax credits for any fiscal year beginning on or after July 1, 2023.
Section 10 also provides that if the Housing Division determines that approval of Housing Division in a fiscal year is necessary to ensure the maximum development the of affordable housing in this State through the issuance of transferable tax credits, the Housing Division is authorized to approve the application unless approval of the application would cause the amount of transferable tax credits approved for the fiscal year to exceed $13,000,000.
Section 10 also provides that if the Housing Division determines that approval of an application that would cause the amount of transferable tax credits issued by the Housing Division in a fiscal year is necessary to ensure the maximum development of affordable housing in this State through the issuance of transferable tax credits, the Housing Division is authorized to approve the application unless approval of fiscal year to exceed $13,000,000.
If the Housing Division approves more than $10,000,000 of transferable tax credits in a fiscal year, the Housing Division is required to reduce the amount of transferable tax credits authorized to be approved in the next fiscal year by the amount of transferable tax credits approved in excess of $10,000,000 in the previous fiscal year.
If the Housing Division approves more thanor the $10,000,000 of transferable tax credits in a fiscal year, the Housing Division is required to reduce the amount of transferable tax credits authorized to be approved in the next fiscal year by the amount of transferable tax credits approved in excess of $10,000,000 in the previous fiscal year.
Under section 10, if less than remaining amount of transferable tax credits carries forward to any fiscal year ending on or before June 30, 2023.
Under section 10, if less than $10,000,000 of transferable tax credits are approved in any fiscal year, the ending on or before June 30, 2023.ax credits carries forward to any fiscal year Section 11 of this bill requires the project sponsor to repay any portion of transferable tax credits to which the project sponsor is not entitled if the Housing Division determines that the project sponsor becomes ineligible for the credits or is found to have violated a restriction or condition set forth in the declaration of restrictive covenants and conditions recorded for the project.
Section 11 of this bill requires the project sponsor to repay any portion of transferable tax credits to which the project sponsor is not entitled if the Housing Division determines that the project sponsor becomes ineligible for the credits or is found to have violated a restriction or condition set forth in the declaration of restrictive covenants and conditions recorded for the project.
Section 12 of this bill concerning transferable tax credits provided to a project pursuant to this bill.
Section 12 of this bill requires the Housing Division to make and submit reports to the Legislature concerning transferable tax credits provided to a project pursuant to this bill.
EXPLANATION – Matter in bolded italics is new;
- *SB448_R1* – 3 – THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Sec.
- 80th Session (2019) – 3 – Sec.
“Project sponsor” means a person who acquires an ownership interest in a project and is designated by the participants in the project to apply for a certificate of eligibility for transferable tax credits pursuant to section 9 of this act.
“Project sponsor” means a person who acquires an ownership interest in a project and is designated by the transferable tax credits pursuant to section 9 of this act.ligibility for Sec.
Sec.
and - *SB448_R1* – 4 – (b) Comply with the requirements to obtain an allocation of federal low-income housing tax credits which are set forth in the qualified allocation plan.
and (b) Comply with the requirements to obtain an allocation of federal low-income housing tax credits which are set forth in the qua3.fiThe Division shall:
3.
The Division shall:
and (c) Reserve the amount of transferable tax credits for which each project is determined to be eligible pursuant to paragraph (b) in the order of the amount of transferable tax credit threshold points awarded to each such project pursuant to paragraph (a) until a reservation is made for each project or the amount of transferable credits reserved for the fiscal year is equal to the amount of transferable tax credits which the Division is authorized to approve for the fiscal year pursuant to section 10 of credits reserved for the fiscal year reaches the amount ofrable tax transferable tax credits which the Division is authorized to each eligible project is reserved the full amount of transferable tax credits for which it is determined to be eligible pursuant to paragraph (b), the Division may take any action that the Division determines will ensure the maximum development of affordable housing in this State, including, without limitation, proportionally reducing the reservation of each project for which transferable tax credits are reserved or reserving for the last project to receive a reservation of transferable tax credits an amount of transferable tax credits that is less than the full amount of transferable tax credits for which the project was determined to be eligible pursuant to paragraph (b).
and - 80th Session (2019) – 4 – (c) Reserve the amount of transferable tax credits for which each project is determined to be eligible pursuant to paragraph (b) in the order of the amount of transferable tax credit threshold points awarded to each such project pursuant to paragraph (a) until a reservation is made for each project or the amount of transferable credits reserved for the fiscal year is equal to the amount of transferable tax credits which the Division is authorized to approve for the fiscal year pursuant to section 10 of this act, whichever occurs first.
If the amount of transferable tax transferable tax credits which the Division is authorized to approve for the fiscal year pursuant to section 10 of this act before each eligible project is reserved the full amount of transferable tax credits for which it is determined to be eligible pursuant to paragraph (b), the Division may take any action that the Division determines will ensure the maximum development of affordable housing in this State, including, without limitation, proportionally reducing the reservation of each project for which transferable tax credits are reserved or reserving for the last project to receive a reservation of transferable tax credits an amount of transferable tax credits that is less than the full amount of transferable tax credits for which the project was determined to be eligible pursuant to paragraph (b).
(c) The Nevada Gaming Control Board;
(d) The Office of Finance;
- *SB448_R1* – 5 – (d) The Office of Finance;
andBoard;
and (e) The Fiscal Analysis Division of the Legislative Counsel Bureau.
(e) The Fiscal Analysis Division of the Legislative Counsel Bureau.
A request for an extension submitted pursuant to this paragraph must be accompanied by proof satisfactory to the Division that:
A request for an extension - 80th Session (2019) – 5 – submitted pursuant to this paragraph must be accompanied by proof satisfactory to the Division that:
and (3) The project will be closed not later than 45 days after the Division receives the request.
and (3) The project will be closed not later than 45 days after the(b) May terminate a reservation of transferable tax credits if the Division determines that any event, circumstance or condition occurs for which a reservation of federal low-income housing tax credits may be terminated.
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the Division determines that any event, circumstance or condition occurs for which a reservation of federal low-income housing tax terminated pursuant to this paragraph, the Division may issue a reservation for the amount of transferable tax credits terminated to other projects eligible for transferable tax credits in the order of the amount of transferable tax credit threshold points awarded to each such project pursuant to paragraph (a) of subsection 3.
If transferable tax credits are terminated pursuant to this paragraph, the Division may issue a reservation for the amount of transferable tax credits terminated to other projects eligible for transferable tax credits in the order of the amount of transferable tax credit threshold points awarded to each such project pursuant to paragraph (a) of subsection 3.
(2) Entered into a written agreement with a contractor who is licensed in this State to begin construction.
(2) Entered into a written agreement with a contractor who is lic(3) Obtained adequate financing for the construction of the project.
- *SB448_R1* – 6 – (3) Obtained adequate financing for the construction of the project.
If the project is a rural development project that receives loans or grants from the United States Department of Agriculture, the applicant must provide a form approved by the Division that indicates that money has been obligated for the construction of the project before the expiration of the period.
If the project is a rural development project that receives loans or grants from the United States Department of Agriculture, the applicant must provide a form approved by the Division that indicates that money has been obligated for the - 80th Session (2019) – 6 – construction of the project before the expiration of the period.
Upon receipt of a final application pursuant to this paragraph, the Division certification of costs.
Upon receipt shall complete a review of the project, the project sponsor and the certification of costs.
If, after such review, the Division determines that the project complies with the requirements upon which a declaration of restrictive covenants and conditions has beenn and recorded in the office of the county recorder for the county in which the project is located:
If, after such review, the Division determines that the project complies with the requirements upon which transferable tax credits were reserved pursuant to this section and a declaration of restrictive covenants and conditions has been recorded in the office of the county recorder for the county in which the project is located:
(2) Within 30 days after the receipt of the notice, the project sponsor shall make an irrevocable declaration of the amount of transferable tax credits that will be applied to each fee or tax set forth in subsection 1, thereby accounting for all of the credits which will be issued;
(2) Within 30 days after the receipt of the notice, the project sponsor shall make an irrevocable declaration of the amount of forth in subsection 1, thereby accounting for all of the credits set which will be issued;
and - *SB448_R1* – 7 – (3) Upon receipt of the declaration described in subparagraph (2), issue transferable tax credits to the project sponsor in the amount approved by the Division.
and (3) Upon receipt of the declaration described in subparagraph (2), issue transferable tax credits to the project sponsor in the amount approved by the Division.
7.
- 80th Session (2019) – 7 – 7.
If the Administrator of the Division determines to protect the information from disclosure, the protected information:
If the Administrator of the protected information:
(a) Is confidential proprietary information of the business;
protect the information from disclosure, (a) Is confidential proprietary information of the business;
any copy of the application that is disclosed to the public;
(c) Must be redacted by the Administrator of the Division from any copy of the application that is disclosed to the public;
andm (d) Must not be disclosed to any person who is not an officer the disclosure.the Division unless the lead participant consents to 8.
and (d) Must not be disclosed to any person who is not an officer or employee of the Division unless the lead participant consents to the disclosure.
8.
(a) “Certification of costs” means a report from an independent certified public accountant attesting:
(a) “Certification of costs” means a report from an indepe(1) To the amount of the actual costs of construction of the project;
(1) To the amount of the actual costs of construction of the project;
- *SB448_R1* – 8 – (b) “Transferable tax credit threshold points” means points awarded based on specific objectives determined by the Division through the dissemination of a strategic plan for the development of affordable housing created by the Division, the review of housing data and the receipt of input from persons interested in the development of affordable housing.
(b) “Transferable tax credit threshold points” means points awarded based on specific objectives determined by the Division through the dissemination of a strategic plan for the development of affordable housing created by the Division, the review of housing data and the receipt of input from persons interested in the development of affordable housing.
(a) Approval of the application would cause the total amount of transferable tax credits approved pursuant to section 9 of this act for each fiscal year to exceed $10,000,000.
- 80th Session (2019) – 8 – (a) Approval of the application would cause the total amount of transferable tax credits approved pursuant to section 9 of this act for each fiscal year to exceed $10,000,000.
If the Division determines that approval of an application that would cause the total amount of transferable tax credits approved pursuant to section 9 of this act in a fiscal year to exceed $10,000,000 is necessary to ensure the maximum development of affordable housing in this State through the approval of transferable tax credits pursuant to section 9 of this act, the Division may approve the application unless the approval of the application would cause the total amount of in the fiscal year to exceed $13,000,000.
If the Division determines that approval of an application that would cause the total amount of transferable tax credits approved pursuant to section 9 of this act maximum development of affordable housing in this State throughhe the approval of transferable tax credits pursuant to section 9 of this act, the Division may approve the application unless the approval of the application would cause the total amount of transferable tax credits approved pursuant to section 9 of this act in the fiscal year to exceed $13,000,000.
If the Division approvest an application for transferable tax credits that causes the total of this act in a fiscal year to exceed $10,000,000, the Division must reduce the amount of transferable tax credits which may be approved pursuant to section 9 of this act in the next fiscal year by the amount of transferable tax credits approved in excess of $10,000,000 in the previous fiscal year.
If the Division approves an application for transferable tax credits that causes the total amount of transferable tax credits approved pursuant to section 9 of this act in a fiscal year to exceed $10,000,000, the Division must reduce the amount of transferable tax credits which may be approved pursuant to section 9 of this act in the next fiscal year by the amount of transferable tax credits approved in excess of $10,000,000 in the previous fiscal year.
Sec.
submitted any false statement or made any false representation in any document submitted for the purpose of obtaining transferable tax credits pursuant to sections 2 to 12, inclusive, of this act or that fails to comply with the requirements of the qualified allocation plan or the declaration of restrictive covenants and conditions shall repay to the Department or the Nevada Gaming Control Board, as applicable, any portion of the transferable tax credits to which the project sponsor is not entitled.
11.
1.
A project sponsor that is found to have submitted any false statement or made any false representation in any document submitted for the purpose of obtaining transferable tax credits pursuant to sections 2 to 12, inclusive, of this act or that fails to comply with the requirements of the qualified allocation plan or the declaration of restrictive covenants and conditions shall repay to the Department or the Nevada Gaming - *SB448_R1* – 9 – Control Board, as applicable, any portion of the transferable tax credits to which the project sponsor is not entitled.
Sec.
- 80th Session (2019) – 9 – Sec.
The number of units of affordable housing created because of the issuance of transferable tax credits pursuant to section 9 of this act.
The number of units of affordable housing created because this act.
As used in this subsection, “unit of affordable housing” means a residential unit in a project that is a rent-restricted unit, as defined in 26 U.S.C.
As used in this subsection, “unit of affordable housing”of means a residential unit in a project that is a rent-restricted unit, as defined in 26 U.S.C.
H - *SB448_R1*
~~~~~ 19 - 80th Session (2019)
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Amendments

1 amendment

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Action History

  1. Chapter 594.

  2. Approved by the Governor.

  3. Enrolled and delivered to Governor.

  4. From committee: Do pass. Placed on General File. Read third time. Passed. Title approved. (Yeas: 40, Nays: 1, Vacant: 1.) To Senate. In Senate. To enrollment.

  5. Read second time. Taken from General File. Rereferred to Committee on Ways and Means. Exemption effective. To committee.

  6. From committee: Do pass.

  7. In Assembly. Read first time. Referred to Committee on Taxation. To committee.

  8. From printer. To engrossment. Engrossed. First reprint. Read third time. Passed, as amended. Title approved. (Yeas: 21, Nays: None.) To Assembly.

  9. From committee: Amend, and do pass as amended. Placed on Second Reading File. Read second time. Amended. (Amend. No. 581.) To printer.

  10. Notice of eligibility for exemption.

  11. From printer. To committee.

  12. Read first time. Referred to Committee on Revenue and Economic Development. To printer.

Sponsors

  • Senate Committee on Revenue and Economic Development · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 66 not signed on

Sponsors (1)

  • Senate Committee on Revenue and Economic Development

Co-sponsors (0)

None.

Not signed on (66)

66 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation housing
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Frequently asked questions

What does SB 448 do?
AN ACT relating to taxation; providing for the issuance of transferable tax credits to a project for the acquisition, development, construction, improvement, expansion, reconstruction or rehabilitation of low-income housing; and providing other matters properly relating thereto.
Who sponsors SB 448?
SB 448 is sponsored by Senate Committee on Revenue and Economic Development.
What is the current status of SB 448?
This bill has been enacted into law. Introduced March 25, 2019. Enacted.
Where can I track SB 448?
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