§ 15-5-1304 - Tax credits authorized -- Amount allowed annually -- Exceeded when -- Upper limits set -- Carryover permitted. - Arkansas Statutes

15-5-1304. Tax credits authorized -- Amount allowed annually -- Exceeded when -- Upper limits set -- Carryover permitted.

(a) (1) For proposals approved under 15-5-1303, the amount of the tax credit shall not exceed thirty percent (30%) of the total amount invested in affordable housing assistance activities by a business firm.

(2) Any tax credit not used in the period for which the credit was approved may be carried forward to any of the five (5) subsequent taxable years until the full credit has been allowed.

(3) The total amount of tax credits granted for programs approved under 15-5-1303 shall not exceed seven hundred fifty thousand dollars ($750,000) in any taxable year.

(4) For taxable year 1997, at least one-half (1/2) of the tax credits shall be designated by the Arkansas Development Finance Authority to the affordable housing assistance activities in counties declared disaster areas by the Governor.

(b) (1) For any year during the compliance period indicated in the land-use restriction agreement, the owner of the affordable housing rental units for which a credit is being claimed shall certify to the authority that all tenants renting claimed units are income-eligible for the affordable housing units and that the rentals for each claimed unit are affordable in compliance with the provisions of 15-5-1302.

(2) The authority is authorized, in its discretion, to audit the records and the accounts of the owner to verify the certification.

(c) (1) In the case of owner-occupied affordable housing units, the qualifying owner-occupant, before the end of the first year in which credits are claimed, shall certify to the authority that the occupant is income eligible during the preceding two (2) years and at the time of the initial purchase contract, but not thereafter.

(2) The qualifying owner-occupant shall further certify to the authority before the end of the first year in which credits are claimed that during the compliance period indicated in the land-use restriction agreement, the cost of the affordable housing unit to the occupant for the claimed unit can reasonably be projected to be in compliance with the provisions of 15-5-1302.

(3) Any succeeding owner-occupant acquiring the affordable housing unit during the compliance period indicated in the land-use restriction agreement shall make the same certification.