Virginia LIHTC Incentive Enacted With $15 Million Annual Statewide Cap

Virginia Gov. Ralph Northam signed into law legislation creating a state low-income housing tax credit (LIHTC). S.B. 1197 creates the Virginia housing opportunity tax credit, which will have a $15 million annual allocation for five years, applying to taxable years beginning on or after Jan. 1, 2021. The state credit will match federal 4% and 9% LIHTC allocations. Virginia becomes the 21st state (plus the District of Columbia) with a LIHTC. Legislation to create a state LIHTC has been introduced this year in Arizona, Indiana, Iowa and Montana.