H911 - Private Sector Affordable Housing Act

• Creates a state income tax credit equal to the federal housing tax credit under Internal Revenue Code Section 42 for taxpayers investing in qualified affordable housing projects in North Carolina.

• Limits the credit to 50% of tax liability (after other credits) per year, with unused portions carried forward for up to 5 years; taxpayer must elect to apply credit against income tax or gross premiums tax.

• Restricts eligibility to qualified buildings that are senior/disabled housing with supportive services, financed at least 50% by tax-exempt bonds, or located in federally-declared disaster areas; excludes projects receiving Workforce Housing Loans.

• Allows pass-through entities to allocate credits among owners if each owner has at least 40% adjusted basis relative to their allocated credit amount, with mandatory reporting requirements.

• Requires taxpayers to forfeit credits and repay past taxes plus interest if federal credits are recaptured; effective for tax years beginning January 1, 2018.