Affordable housing tax credit expansion amended, advanced

A bill intended to create additional investment in affordable housing and child care programs in Nebraska advanced from select file Feb. 7 after lawmakers clarified how its provisions would affect passthrough entities.

LB182, introduced by Sen. Eliot Bostar of Lincoln, would allow insurance companies and financial institutions to qualify for a child care tax credit and allow a taxpayer to transfer, sell or assign Nebraska affordable housing tax credits to another taxpayer.

On select file, Bostar offered an amendment, adopted 37-1, to clarify that if the owner of a qualified project is a partnership, LLC or S corporation, the affordable housing tax credit would be allocated among some or all of the partners, members or shareholders.

Elkhorn Sen. R. Brad von Gillern, Revenue Committee chairperson, said the amendment further would clarify that any passthrough entity that receives a credit, either from the project’s owner or another passthrough entity, could further allocate the credit among its partners, members or shareholders or transfer, sell or assign the credit to a taxpayer.

By allowing the credits to be sold to more types of entities, von Gillern said, the underlying bill would increase the credits’ value, resulting in the construction of more affordable housing.

Omaha Sen. Terrell McKinney opposed the amendment and LB182. He expressed concern that the measure could make it easier for large out-of-state investors to acquire property and raise rental prices in his North Omaha district.

After adopting Bostar’s amendment, senators voted 36-1 to advance the bill to the final round of debate.