Workforce Housing Opportunity Development Tax Credit
Conn. Gen. Stat. § 8-395a
What’s New
New credit associated with participation in workforce housing opportunity development program
Legislation establishes a workforce housing opportunity development program to be administered by the Department of Housing under which individuals or entities who make cash contributions to an eligible developer for an eligible workforce housing opportunity development project located in a federally designated opportunity zone may be allowed a credit against certain taxes. The legislation caps the total amount of credits allowed per fiscal year at $5 million. The legislation is effective June 1, 2024.
Description and Applicable Taxes
A tax credit administered by the Connecticut Department of Housing (DOH) is available, other than the liability imposed by Conn. Gen. Stat § 12-707, for individuals and entities making cash contributions to an eligible developer for an eligible workforce housing opportunity development project located in a federally designated opportunity zone. To be eligible for this credit, an individual or entity must apply to DOH not later than January 1, 2025. No credit may be claimed before DOH issues a tax credit voucher.
For taxable income years beginning on or after January 1, 2025, individuals or entities holding a credit voucher may apply the tax credit against the taxes imposed under:
- Chapter 208 (Corporation Business Tax); and
- Chapter 229 (Income Tax).
Definitions
Eligible workforce housing opportunity development project or project means a project for the construction or substantial rehabilitation of rental housing located within an opportunity zone in this state, designated for certain professions that work within the municipality in which the project is located and for very low income families and individuals, and that may incorporate renewable energy technology and be transit‑oriented.
Eligible developer or developer means:
- A nonprofit corporation approved by DOH;
- Any business corporation incorporated that has as one of its purposes the construction, rehabilitation, ownership or operation of housing, and either certified or that has articles of incorporation approved by DOH;
- Any partnership, limited partnership, limited liability partnership, joint venture, trust, limited liability company or association, that has as one of its purposes the construction, rehabilitation, ownership or operation of housing, and either certified or that has basic documents of organization approved by DOH;
- A housing authority approved by DOH; or
- A municipal developer.
Nonprofit corporation means a nonprofit corporation incorporated according to Chapter 602 of the general statutes or any predecessor statutes thereto, that has as one of its purposes the construction, rehabilitation, ownership or operation of housing and that has articles of incorporation approved by DOH.
Tax Credit Amount
The total amount of all tax credits allowed to all individuals or entities must not exceed $5,000,000 in any one fiscal year.
No tax credit shall be granted to any individual or entity for any contribution of less than $250.
Carryforward and Carryback Limitations
The amount of tax credit that is not used in the taxable income year during which the cash contribution was made may be carried forward or back for the five immediately succeeding or preceding taxable or income years until the full credit has been allowed.
How to Apply
Visit DOH’s website at www.ct.gov/DOH for more information regarding the application process.
Where to Get Additional Information
Direct inquiries to:
Connecticut Department of Housing
505 Hudson Street
Hartford CT 06106-7106
860-270-8262
Statutory and Regulatory References
Conn. Gen. Stat. § 8-395a
Page Last Reviewed or Updated: June 12, 2024