Nevada 2021 Regular Session Status: Enacted

SB 284 — Revises provisions relating to transferable tax credits for affordable housing. (BDR 32-651)

Last action — Chapter 225.

  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 22, 2021. 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.

Bill Text

What changed in the latest version

314 added · 335 removed

Plain-language change summary

The updated version of Senate Bill 284 changes the process for applying for transferable tax credits for affordable housing projects. Previously, project sponsors submitted their application after the project was completed, but now they must submit it at least 45 days before the project is finished. This change is important because it allows the Housing Division more time to review the project and ensure everything is in order before it officially concludes, which can help streamline the funding process for affordable housing initiatives. Additionally, the bill removes a future expiration date for this tax credit program, ensuring ongoing support for affordable housing projects.

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(Reprinted with amendments adopted on April 15, 2021) FIRST REPRINT S.B.
Senate Bill No.
284 S ENATE BILL NO .
284–Senator Ratti CHAPTER..........
284–SENATOR R ATTI M ARCH 22, 2021 ____________ Referred to Committee on Revenue and Economic Development SUMMARY—Revises provisions relating to transferable tax credits for affordable housing.
(BDR 32-651) 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.
§ 42(g)) Existing law requires a project sponsor who is applying for such transferable tax credits to submit to the Division, upon the completion of the project, a final deem necessary to determine whether the project qualifies for the issuance ofion may transferable tax credits.
§ 42(g)) Existing law requires a project sponsor who is applying for such transferable tax credits to submit to the Division, upon the completion of the project, a final application, a certification of costs and such other information as the Division may deem necessary to determine whether the project qualifies for the issuance of transferable tax credits.
(NRS 360.867) Section 1 of this bill revises the procedure for the issuance of transferable tax credits so that transferable tax credits are issued before, rather than after, the project is completed.
(NRS 360.867) Section 1 of this bill revises the procedure before, rather than after, the project is completed.
Specifically, section 1 requires the final application for transferable tax credits to be submitted not less than 45 days before the project is closed rather than upon completion of the project.
Specifically, section 1 requiresued the final application for transferable tax credits to be submitted not less than 45 days before the project is closed rather than upon completion of the project.
Section submit to the Division a certification of costs of the project and such othersor must information as the Division deems necessary to determine the final cost of the - *SB284_R1* – 2 – project;
Section further requires that, upon completion of the project:
(2) the Division must determine, based on the final cost of the project as indicated in the certification of costs, whether the amount of transferable tax credits issued to the project sponsor is greater than the amount of transferable tax credits to which the project sponsor is entitled;
(1) the project sponsor must submit to the Division a certification of costs of the project and such other information as the Division deems necessary to determine the final cost of the project;
(3) the Division must notify the project Division of the Legislative Counsel Bureau and the Nevada Gaming Control Boards if the Division determines that the project sponsor is not entitled to any portion of the transferable tax credits issued to the project sponsor;
(2) the Division must determine, based on the final cost of the project as indicated in the certification of costs, whether the amount of transferable tax credits issued to the project sponsor is greater than the amount of transferable tax credits to sponsor, the Department of Taxation, the Office of Finance, the Fiscal Analysis Division of the Legislative Counsel Bureau and the Nevada Gaming Control Board if the Division determines that the project sponsor is not entitled to any portion of the transferable tax credits issued to the project sponsor;
Finally, section 1 authorizes an entity to which a project of its subsidiaries or affiliates and requires the entity to notify the Division of such a transfer.
Finally, section 1 authorizes an entity to which a project sponsor transfers transferable tax credits to transfer those tax credits to one or more of its subsidiaries or affiliates and requires the entity to notify the Division of such a trExisting law prohibits the Division from approving an application for transferable tax credits that is submitted after July 1, 2023, and provides for the expiration of the program of transferable tax credits for affordable housing on January 1, 2030.
Existing law prohibits the Division from approving an application for transferable tax credits that is submitted after July 1, 2023, and provides for the expiration of the program of transferable tax credits for affordable housing on January 1, 2030.
section 14 of chapter 594, Statutes of Nevada an application received after July 1, 2023.
section 14 of chapter 594, Statutes of Nevada 2019, at page 3766) Section 2 of this bill removes the prohibition against approving an application received after July 1, 2023.
Section 2 prohibits the Division froming approving an application for transferable tax credits if doing so would cause the total amount of transferable tax credits approved over the lifetime of the program of transferable tax credits for affordable housing to exceed $40,000,000.
Section 2 prohibits the Division from approving an application for transferable tax credits if doing so would cause the - 81st Session (2021) – 2 – transferable tax credits for affordable housing to exceed $40,000,000.
Section 3 of this bill removes the expiration date for the program of transferable tax credits for affordable housing.
Section 3 ofof this bill removes the expiration date for the program of transferable tax credits for affordable housing.
EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
(a) Review each application for a certificate of eligibility for transferable tax credits submitted pursuant to subsection 2 and any - *SB284_R1* – 3 – supporting documents to determine whether the requirements for eligibility for a reservation of transferable tax credits are met and the amount of transferable tax credit threshold points awarded to the project;
(a) Review each application for a certificate of eligibility for transferable tax credits submitted pursuant to subsection 2 and any supporting documents to determine whether the requirements for eligibility for a reservation of transferable tax credits are met and the amount of transferable tax credit threshold points awarded to the project;
(b) Determine the amount of transferable tax credits for which the project may be eligible, which amount must equal the amount determined by the Division to be necessary to make the project financially feasible after considering all other sources of financing for the project;
(b) Determine the amount of transferable tax credits for which the project may be eligible, which amount must equal the amount determined by the Division to be necessary to make the project for the project;
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 NRS 360.868, whichever occurs first.
and after considering all other sources of financing (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 - 81st Session (2021) – 3 – 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 NRS 360.868, whichever occurs first.
If the amount of transferable tax credits reserved for the fiscal year reaches the amount of transferable tax credits which the Division is authorized to approve for the fiscal year pursuant to NRS 360.868 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).
If the amount of transferable tax credits reserved for the fiscal year authorized to approve for the fiscal year pursuant to NRS 360.868 is 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).
5.
(a) Shall terminate a reservation of transferable tax credits if the project for which the reservation is awarded is not closed within the period specified in paragraph (a) of subsection 6 unless, before the expiration of that period, the Division receives from the project sponsor a written request for an extension of not more than 45 days.
The Division:
(a) Shall terminate a reservation of transferable tax credits if the project for which the reservation is awarded is not closed within the period specified in paragraph (a) of subsection 6 unless, before - *SB284_R1* – 4 – the expiration of that period, the Division receives from the project sponsor a written request for an extension of not more than 45 days.
(2) The delay in closing was the result of circumstances that could not have been anticipated by and were outside the control of the project sponsor at the time the application was submitted by the project sponsor;
(2) The delay in closing was the result of circumstances that could not have been anticipated by and were outside the control of - 81st Session (2021) – 4 – the project sponsor at the time the application was submitted by the project sponsor;
(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.
Division determines that any event, circumstance or conditions if the occurs for which a reservation of federal low-income housing tax credits may be terminated.
(4) Executed a written commitment for a loan for permanent financing for the construction of the project in an amount that ensures the financial feasibility of the project.
financing for the construction of the project in an amount thatnt ensures the financial feasibility of the project.
If the - *SB284_R1* – 5 – 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 construction of the project before the expiration of the period.
(b) [Upon completion of the project,] Not less than 45 days before the project is closed, the project sponsor must submit to the Division a final application for transferable tax credits on a form provided by the Division [, a certification of costs on a form provided by the Division] and such other information as the Division deems necessary to determine whether the project qualifies for the issuance of transferable tax credits.
(b) [Upon completion of the project,] Not less than 45 days before the project is closed, the project sponsor must submit to the Division a final application for transferable tax credits on a form provided by the Division [, a certification of costs on a form - 81st Session (2021) – 5 – provided by the Division] and such other information as the Division deems necessary to determine whether the project qualifies for the issuance of transferable tax credits.
Upon receipt of a final application pursuant to this paragraph, the Division shall complete a review of the project [,] and the project sponsor .
Upon receipt of a final application pursuant to this paragraph, the Division shall complete a certification of costs.] 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] will be recorded in the office of the county recorder for the county in which the project is located:
[and the certification of costs.] 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] will be recorded in the office of the county recorder for the county in which the project is located:
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.
and (3) Upon receipt of the declaration described in subparagraph amount approved by the Division.
The Division shall notify the Department of Taxation, the Office of Finance, the Fiscal Analysis - *SB284_R1* – 6 – Division of the Legislative Counsel Bureau and the Nevada Gaming Control Board of all transferable tax credits issued, segregated by each fee or tax set forth in subsection 1, and of all transferable tax credits transferred, segregated by each fee or tax set forth in subsection 1.
The Division shall notify the Department of Taxation, the Office of Finance, the Fiscal Analysis Division of the Legislative Counsel Bureau and the Nevada Gaming Control Board of all transferable tax credits issued, segregated by each fee or tax set forth in subsection 1, and of all transferable tax credits transferred, segregated by each fee or tax set forth in subsection 1.
Upon completion of the project, the project sponsor shall submit to the Division a certification of costs on a form provided by the Division and such other information as the Division deems necessary to determine the final cost of the project.
Upon completion of the project, the project sponsor shall submit to the Division a certification of costs on a form provided by the Division and such other information as the Division deems - 81st Session (2021) – 6 – necessary to determine the final cost of the project.
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If, based upon the final cost of the project indicated in the certification of costs, the Division determines that the amount of transferable tax credits issued by the Division to the project sponsor is greater than the amount of transferable tax credits to which the project sponsor is entitled:
If, based upon the final cost of the project indicated in the certification of costs, the Division determines that the amount of transferable tax credits issued by the Division to the project sponsor is greater than the entitled:
(a) The Division shall notify the project sponsor, the Department of Taxation, the Office of Finance, the Fiscal Analysis Division of the Legislative Counsel Bureau and the Nevada Gaming Control Board that the project sponsor is required to repay the portion of the transferable tax credits to which the project sponsor is not entitled.
transferable tax credits to which the project sponsor is (a) The Division shall notify the project sponsor, the Department of Taxation, the Office of Finance, the Fiscal Analysis Division of the Legislative Counsel Bureau and the Nevada Gaming Control Board that the project sponsor is required to repay the portion of the transferable tax credits to which the project sponsor is not entitled.
If the Administrator of the Division determines to protect the information from disclosure, the protected information:
If the Administrator of the Division information:o protect the information from disclosure, the protected (a) Is confidential proprietary information of the business;
(a) Is confidential proprietary information of the business;
- *SB284_R1* – 7 – [8.] 9.
[8.] 9.
(b) May adopt any other regulations that are necessary to carry out the provisions of NRS 360.860 to 360.870, inclusive.
- 81st Session (2021) – 7 – (b) May adopt any other regulations that are necessary to carry out the provisions of NRS 360.860 to 360.870, inclusive.
(a) “Affiliate” means a person who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with a specified person.
(a) “Affiliate” means a person who, directly or indirectly under common control with a specified person.
(b) “Certification of costs” means a report from an independent certified public accountant attesting:
is controlled by or is (b) “Certification of costs” means a report from an independent certified public accountant attesting:
(a) Approval of the application would cause the total amount of transferable tax credits approved pursuant to NRS 360.867 for each fiscal year to exceed $10,000,000.
(a) Approval of the application would cause the total amount of transferable tax credits approved pursuant to NRS 360.867 for each per fiscal year for which transferable tax credits have not previously been approved may be carried forward and made available for approval during the next or any future fiscal year .
Any portion of the $10,000,000 per fiscal year for which transferable tax credits have not previously been approved may be carried forward and made available for approval during the next or any future fiscal year .
[ending on or before June 30, 2023.] If the Division determines that approval of an application that would cause the total amount of transferable tax credits approved pursuant to NRS 360.867 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 NRS 360.867, the Division may approve the application unless the approval of the application would cause the total amount of transferable tax credits approved pursuant to NRS 360.867 in the fiscal year to exceed $13,000,000.
[ending on or before June 30, 2023.] If the Division determines that approval of an application that would cause the total amount of transferable tax credits approved pursuant to NRS 360.867 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 NRS 360.867, the Division may approve the application unless the approval of the application would cause the - *SB284_R1* – 8 – total amount of transferable tax credits approved pursuant to NRS 360.867 in the fiscal year to exceed $13,000,000.
If the Division approves an application for transferable tax credits that causes the total amount of transferable tax credits approved pursuant to NRS 360.867 in a fiscal year to exceed $10,000,000, the Division must - 81st Session (2021) – 8 – reduce the amount of transferable tax credits which may be approved pursuant to NRS 360.867 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 NRS 360.867 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 NRS 360.867 in the next fiscal year by the amount of transferable tax credits approved in excess of $10,000,000 in the previous fiscal year.
(b) [The Division receives the application on or after July 1, 2023.] Approval of the application would cause the total amount of transferable tax credits approved for all fiscal years pursuant to NRS 360.867 to exceed $40,000,000.
(b) [The Division receives the application on or after July 1, 2023.] Approval of the application would cause the total amount NRS 360.867 to exceed $40,000,000.ed for all fiscal years pursuant to 2.
2.
Sec.
page 3766, is hereby amended to read as follows:
3.
of Nevada 2019, at Sec.
Section 14 of chapter 594, Statutes of Nevada 2019, at page 3766, is hereby amended to read as follows:
Sec.
H - *SB284_R1*
~~~~~ 21 - 81st Session (2021)
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Amendments

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Action History

  1. Chapter 225.

  2. Approved by the Governor.

  3. Enrolled and delivered to Governor.

  4. In Senate. To enrollment.

  5. Read third time. Passed. Title approved. (Yeas: 35, Nays: 6, Absent: 1.) To Senate.

  6. Taken from General File. Placed on General File for next legislative day.

  7. From committee: Do pass. Placed on Second Reading File. Read second time.

  8. In Assembly. Read first time. Referred to Committee on Revenue. To committee.

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

  10. From committee: Amend, and do pass as amended. Placed on Second Reading File. Read second time. Amended. (Amend. No. 232.) To printer.

  11. From printer. To committee.

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

Sponsors

Sponsorship breakdown

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

Sponsors (1)

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

Who sponsors SB 284?
SB 284 is sponsored by Julia Ratti.
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This bill has been enacted into law. Introduced March 22, 2021. Enacted.
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