S.B. 2694 Summary

• Exempts state low-income housing tax credit investors from federal "at-risk" (IRC Section 465) and "passive activity loss" (IRC Section 469) rules for buildings placed in service after December 31, 2019
• Allows allocation of state tax credits among partners or members of the taxpayer in any manner agreed to by the parties, regardless of whether parties are deemed partners for federal income tax purposes
• Prohibits state depreciation basis from exceeding federal depreciation basis and caps state credits at 50 percent of total federal credits allocated for the ten-year federal credit period
• Extends the filing deadline for claiming tax credits from 12 months to 24 months following the close of the taxable year and requires inclusion of IRS Form 8609
• Effective July 1, 2050 for low-income buildings placed in service in taxable years beginning after December 31, 2019