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Modifications to the Affordable Housing Tax Credit

on Monday, 17 July 2017 in Dirt Alert: David C. Levy, Editor

The Nebraska Legislature passed Legislative Bill 217, which amended the Affordable Housing Tax Credit Act (Nebraska Revised Statutes sections 77-2501 to 77-2507).  The amendments take effect on August 24, 2017.

The Act provides affordable housing tax credits to accelerate the development of low-income and workforce housing (Laws 2016, LB 884).  Owners of qualifying projects may use the credits to offset income taxes, premium and related retaliatory taxes, and franchise taxes.   

Among other changes, Legislative Bill 217: 

  • provides any reduction in the credit allowable in the first year of the credit period is allowable in the seventh year of the credit period;
  • clarifies recipients of credits may allocate them to the partners, members, or shareholders of pass-through entities—partnerships, limited liability companies, and S corporations; and 
  • establishes procedural requirements for transferring, selling, or assigning credits. 

Please contact us if you have questions about the Affordable Housing Tax Credit Act or LB 217.   Thank you.


David C. Levy

Garner R. Girthoffer


1700 Farnam Street | Suite 1500 | Omaha, NE 68102 | 402.344.0500