Section 1904-G. Use of tax credits.
(a) Initial use.--
(1) Unless otherwise permitted under paragraph (2),
prior to the sale or assignment of a tax credit under section
1905-G, a taxpayer must first use a tax credit against the
qualified tax liability incurred in the taxable year in which
the tax credit was approved.
(2) A taxpayer may elect to use a tax credit the next
succeeding taxable year following the completion of a
qualified low-income housing project.
(b) Application.--The tax credit shall be applied against a
taxpayer's qualified tax liability only after all other tax
credits and deductions available to the taxpayer under act of
the General Assembly have been used.
(c) Amount.--The tax credit may be claimed for an amount not
to exceed 50% of the taxpayer's qualified tax liability or 20%
of the amount certified per taxable year during the credit
period, whichever is less.
Section 1905-G. Carryover, sale and assignment.
(a) General rule.--A taxpayer shall be entitled to carry
forward a tax credit for a period not to exceed five taxable
years from the taxable year in which the tax credit was awarded.
Each time the tax credit is carried over to a succeeding taxable
year, the tax credit shall be reduced by the amount that was
used as a credit during the immediately preceding taxable year.
(b) Application.--A tax credit certificate received by the
department in a taxable year shall first be applied against the
taxpayer's qualified tax liability for the current taxable year
as of the date on which the credit was issued before the tax
credit can be applied against a qualified tax liability under
subsection (a).
(c) No carryback or refund.--A taxpayer may not carry back
or obtain a refund of all or any portion of an unused tax credit
granted to the taxpayer under this article.
Section 1906-G. Pass-through entity.
(a) General rule.--If a pass-through entity has any unused
tax credit under section 1906-G, the taxpayer may elect in
writing, according to procedures established by the department,
to transfer all or a portion of the tax credit to shareholders,
members or partners in proportion to the share of the entity's
distributive income to which the shareholder, member or partner
is entitled.
(b) Limitation.--A pass-through entity and a shareholder,
member or partner of a pass-through entity may not claim the
credit under subsection (a) for the same qualified project.
(c) Application.--A shareholder, member or partner of a
pass-through entity to whom a credit is transferred under
subsection (a) shall immediately claim the credit in the taxable
year in which the transfer is made. The shareholder, member or
partner may not carry forward, carry back, obtain a refund of or
sell or assign the tax credit.
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