2023 District of Columbia Code › Title 47 - Taxation, Licensing, Permits, Assessments, and Fees. [Enacted title] › Chapter 48 - District of Columbia Low-Income Housing Tax Credit › § 47–4803. Eligibility

§ 47–4803. Eligibility.
(a) An owner of a qualified project may receive a District of Columbia low-income housing tax credit with respect to that qualified project in an amount up to 25% of the value of the federal low-income housing tax credit received with respect to the qualified project.
(b)(1) If the owner of a qualified project transfers, sells, or assigns a District of Columbia low-income housing tax credit to another taxpayer, pursuant to § 47-4806, the District of Columbia low-income housing tax credit shall not be taken, pursuant to subsection (c) of this section, against taxes imposed under this title unless the owner has filed with the Department, in a form determined by the Department, an affidavit certifying that:
(A) The owner of the qualified project received, as consideration for transferring, selling, or assigning the District of Columbia low-income housing tax credit, an amount that exceeds the lesser of $0.70 per $1.00 in District of Columbia low-income housing tax credit or 80% of the per dollar sale price for a federal low-income housing tax credit associated with the qualified project that the owner has transferred, sold, or assigned; and
(B) The value received by the owner of the qualified project was used to ensure financial feasibility of the qualified project.
(2) The Department shall deliver to the Chief Financial Officer and the Commissioner an annual report certifying the ongoing eligibility of an eligible project to receive federal low-income housing tax credits.
(c)(1) The District of Columbia low-income housing tax credit may be claimed against taxes imposed under Chapter 18 of this title or § 47-2608(a)(1).
(2) The District of Columbia low-income housing tax credit may be claimed equally for 10 years, subtracted from the tax otherwise due for each taxable period and shall not be refundable; provided, that the credit may not be taken against any tax that is dedicated in whole or in part to the Healthy DC and Heath Care Expansion Fund established by § 31-3514.02.
(3) If the District of Columbia low-income housing tax credit is claimed against taxes imposed under Chapter 18 of this title, any amount of the low-income housing tax credit that exceeds the tax due for a taxable year may be carried forward to any of the 10 remaining subsequent taxable years for taxes imposed under Chapter 18 of this title. If the District of Columbia low-income housing tax credit is claimed against taxes imposed under § 47-2608(a)(1), any amount of the credit that exceeds the tax due for a taxable year may be carried forward to any of the 10 remaining subsequent taxable years for taxes imposed under § 47-2608(a)(1).
(d)(1) All or any portion of District of Columbia tax credits issued in accordance with the provisions of this section may be transferred, sold, assigned, or allocated to parties who are eligible pursuant to [this chapter].
(2) An owner of a qualified project shall certify to the Chief Financial Officer the amount of credit allocated to the owner. The owner of the qualified project shall provide to the Chief Financial Officer appropriate information so that the low-income housing tax credit can be properly allocated.
(e) If the recapture of District of Columbia low-income housing tax credits is required pursuant to § 47-4804(a) or (b), any statement submitted to the Chief Financial Officer and the Commissioner as provided in this section shall include the:
(1) Proportion of the District of Columbia credit required to be recaptured;
(2) Identity of each transferee, purchaser, assignee, or party to whom a credit is allocated; and
(3) Amount of credit previously allocated to such transferee, purchaser, assignee, or party to whom a credit is allocated.
(f)(1) A District of Columbia low-income housing tax credit allowed under this section shall not be denied with respect to any qualified project merely by reason of a right of first refusal held by the tenants, in cooperative form or otherwise, or resident management corporation of such building or by a qualified nonprofit organization, as defined in section 42 of the 1986 Internal Revenue Code, as amended and in effect for the taxable year, or government agency to purchase the qualified District of Columbia project after the close of the compliance period for a price which is not less than the minimum purchase price determined under paragraph (2) of this subsection.
(2) The minimum purchase price shall be an amount equal to the sum of the principal amount of outstanding indebtedness secured by the building, other than indebtedness incurred within the 5-year period ending on the date of the sale pursuant to paragraph (1) of this subsection, and all federal and District taxes attributable to the sale.
(Feb. 26, 2015, D.C. Law 20-155, § 7142(b), 61 DCR 9990; Dec. 3, 2020, D.C. Law 23-149, § 7202(d), 67 DCR 10493; Nov. 13, 2021, D.C. Law 24-45, § 2212(b), 68 DCR 010163.)