During the 88th Regular Session, the Texas Legislature passed H.B. 1058, a significant bill that effectively created a state-wide low-income housing tax credit program. Notably, this new legislative measure is to be administered by the Texas Department of Housing & Community Affairs (TDHCA).
The program allows TDHCA to issue state tax credits that can be utilised to offset franchise tax and insurance premium tax for companies. The key point here being, this offset is applicable to companies that have an ownership in certain affordable housing developments. This development forms an important part of a broader initiative to increase the availability of affordable housing across the state.
The full details of the new legislative updates and the implications of H.B. 1058 can be found here.