Communities of Opportunity Tax Credit
The Communities of Opportunity Tax Credit provides Virginia income tax credits to landlords with qualified housing units located in census tracts with poverty rates of less than ten percent in the Richmond Metropolitan Statistical Area (MSA) who participate in the Housing Choice Voucher program.
The amount of tax credit for an eligible property will be based on ten percent of annual Fair Market Rent for that specific unit and prorated when units are qualified for less than the full tax year. Pro rations will be based on full calendar months. A landlord may receive tax credits on one or more units within the same tax year. Credits taken for any one tax year cannot exceed the tax liability for that year. Credits not taken for the year for which they are allocated may be carried forward, but cannot be carried forward for more than five years.
Should eligible applications received by the March 1 deadline exceed the annual appropriation, tax credits will be prorated based on the total amount of qualified requests received and the total amount of credits available. If the annual appropriation for tax credits is not fully allocated based on qualified applications received by the March 1 deadline, the remaining balance will be allocated on a first-come first served basis. Unused balances will not be allocated more than three years after the tax year in which they were first made available.
Credits granted to partnership, limited liability company, elected small business corporation (S corporation) or corporations shall be allocated to the individual partners, members, or shareholders in proportion to their ownership or interest in such business entity. The landlord must assume responsibility for distributing credits in this manner. No person shall be allowed a tax credit under 58.1-339.9 (Rent reductions tax credit) and the COP tax credit for the rental of the same dwelling unit in a taxable year.
For additional information, please contact:
Dawn Scott
(804) 371-7142
Dawn.Scott@dhcd.virginia.gov
Virginia Department of Housing and Community Development
Main Street Centre
600 East Main Street, Suite 300
Richmond VA 23219
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