NC H1124

Reenacts Article 3E of Chapter 105 of the North Carolina General Statutes to restore the low-income housing tax credit program that had expired.

Allows taxpayers allocated federal low-income housing tax credits to receive credits equal to a percentage of qualified basis, ranging from 10% to 30% depending on development location (Low-Income, Moderate-Income, or High-Income county/city) and affordability requirements.

Provides two methods for receiving credits: direct tax refund (with excess amounts refundable and held in escrow until 50% project completion or placement in service) or loan transfer to the North Carolina Housing Finance Agency.

Requires taxpayers to forfeit credits if they fail to meet affordability requirements or experience recapture events under federal law, except when recapture occurs in the sixth or subsequent year after credit allocation or when credits were transferred to the Housing Finance Agency.

Effective for taxable years beginning on or after January 1, 2022.