Relating to: changes to the low-income housing tax credit. (FE)

SB 942 amends state tax statutes to clarify how the low-income housing tax credit is claimed by entities and their members. It specifies that partnerships, limited liability companies, and tax-option corporations cannot claim the credit directly, but their individual partners, members, or shareholders may claim it based on the entity’s eligible costs. The bill requires entities to calculate and distribute credit amounts to members and mandates that individuals claiming credit under written agreements must submit those agreements with tax returns. It also adds a specific provision allowing insurers (as shareholders) to claim the credit based on costs incurred by the entity they are part of. This bill directly affects housing developers, investors, and insurers involved in low-income housing projects financed with tax-exempt bonds.