NC S588

Reenacts Article 3E of North Carolina tax law governing low-income housing tax credits that were previously repealed, effective for taxable years beginning January 1, 2021.

Provides state tax credits equal to a percentage of qualified basis for taxpayers who construct or substantially rehabilitate low-income housing developments receiving federal credits allocated on or after January 1, 2003, with credit percentages ranging from 10% to 30% based on development location and affordability levels.

Allows taxpayers to elect either a direct tax refund method or a loan method through the Housing Finance Agency for receiving credits, with refunds held in escrow until the development reaches 50% completion or is placed in service.

Requires taxpayers to maintain records, report recapture events to the Housing Finance Agency, and forfeit corresponding state credits if federal credit recapture occurs, except for recapture events occurring six or more years after federal allocation.

Extends the sunset date of the program from January 1, 2015 to January 1, 2025 and mandates annual reporting to the Department on taxpayer participation, development locations, and total General Fund costs.