HI HB1216

Creates a new low-income housing investment tax credit allowing taxpayers to claim credits over five taxable years starting in the year of investment, with annual percentages ranging from 35% down to 10% of the investment amount (capped at $700,000 in year one, declining to $200,000 in years four and five).

Allows excess tax credits that exceed a taxpayer's income tax liability in any year to be carried forward to subsequent years until exhausted, with all claims required to be filed within twelve months after the close of the taxable year or the credit is waived.

Requires the state Department of Taxation to prepare necessary forms and may adopt rules to implement the credit; allows taxpayers to provide documentation to substantiate the validity of their claims.

Applies three tiers of scrutiny based on investment tax credit allocation ratios: presumption of validity for ratios of 4.0 or less, discretionary review for ratios between 4.0 and 6.0, and taxpayer burden to substantiate economic merit for ratios greater than 6.0.

Makes the credit operative for income tax purposes under Chapters 235, 241, and 431 for investments made after December 31, 2017 and before January 1, 20__ (end date not specified in bill text).