TX SB2814

Creates a state low-income housing development tax credit against franchise taxes and insurance premium taxes for entities that own direct or indirect interests in qualified developments that receive federal low-income housing tax credits under Section 42 of the Internal Revenue Code

Sets the state housing credit ceiling at $25 million in annual credits per award year, split evenly between developments financed through tax-exempt bonds (50%) and those not financed through tax-exempt bonds (50%)

Establishes a 10-year credit period beginning when a building is placed in service, with annual credits capped at the amount of the federal tax credit awarded for each year; unused credits may be carried back up to 3 years or forward up to 10 years

Reserves $5 million of the first year's credits specifically for qualified developments that received federal tax credit allocations in 2021 or 2022, have owned the land since December 31, 2022, and require state credits for financial feasibility

Takes effect January 1, 2026, with the Texas Department of Housing and Community Affairs authorized to begin reserving credits starting January 1, 2024; the authority to allocate new credits expires December 31, 2029, though existing credits can continue to be claimed through 2036