Pennsylvania Senator Tom Killion (R) introduced a State Housing Tax Credit bill, SB 1185, on September 19. This legislation creates a new Pennsylvania tax credit largely modeled after the federal Low Income Housing Tax Credit (LIHTC). LIHTC is the principal vehicle for creating and preserving affordable housing in the U.S. but is oversubscribed. The Pennsylvania housing tax credit will create a new resource that can be used in conjunction with LIHTC, incentivizing private investments in new and existing affordable housing in the Commonwealth.
The Housing Alliance of Pennsylvania, an NLIHC state partner, took a lead role in advocating for SB 1185. The Housing Alliance created support for the legislation through actions like their annual Home Matters Day, where community and affordable housing organizers urged their legislators to co-sponsor the housing tax credit. Advocates succeeded in securing twelve original bi-partisan co-sponsors of the bill.
The Pennsylvania housing tax credit will largely mirror the federal Low Income Housing Tax Credit, allocating tax credits to qualified projects serving low income families for which investors will receive a dollar-for-dollar credit on their state tax liability. One difference from LIHTC is that the program will allocate 10% of the credits to homes serving households with incomes at or below 30% of area median incomes (AMI).
“Affordable housing is out of reach for too many Pennsylvanians,” said Phyllis Chamberlain, executive director of the Housing Alliance of Pennsylvania. “Establishing a state housing tax credit modeled off of the successful national program will drive private investment towards creating housing opportunities throughout the common wealth. The Housing Alliance of Pennsylvania is grateful to State Senator Killion for introducing SB 1185, and for the Senate’s leadership on this issue. We look forward to making a state housing tax credit a reality.”
Click here for more information about the legislation or contact Michelle Feldman, policy director at the Housing Alliance of Pennsylvania, at [email protected] or 215-576-7044.