Governor Approves Mississippi Home Corporation’s Special Opportunity Zone Cycle for Low Income Tax Credit Program
Governor Phil Bryant recently signed an amendment to include a special Opportunity Zone cycle as part of the Low-Income Housing Tax Credit Program offered through the Mississippi Home Corporation. The special cycle will add benefits to investors who invest eligible capital into the selected opportunity zones in MS.
The Tax Cuts and Jobs Act of 2017 established Opportunity Zones to boost economic development and job creation in distressed communities throughout the country. As part of this effort, Mississippi Home Corporation has committed 12.5% of each year’s Annual Credit Authority (ACA) for 2018, 2019, 2020 and 2021 for applicants participating in the Opportunity Zones Special Allocation Cycle beginning in 2019. “Opportunity Zones will help spur economic investment around Mississippi, and MHC is proud to support those investments by using them in coordination with affordable housing,” said Scott Spivey, Executive Director of MHC. “We hope the combination of the incentives of the Low-Income Housing Tax Credit and Opportunity Funds will produce innovative housing solutions that would not have otherwise been possible.”
The special cycle will consist of two set-asides, Opportunity Zones and Non-Profit. In order to satisfy IRS Section 42 regulations, at least 10% of the available allocation will be set-aside for Non-Profit with the remainder being available to Opportunity Zones. An application must be for a proposed project located in an identified Qualified Opportunity Zone tract in Mississippi.
“Opportunity Zones were set up to attract significant private sector investment, help grow our state’s economy and create new jobs,” said Governor Phil Bryant. “This special cycle offered through the Housing Tax Credit program will add another beneficial layer by promoting more affordable housing in areas where it is needed the most.”
The special cycle will give points to developers whose proposed project allows for mixed use/mixed income and incorporate innovative ideas such as unique design and materials, architecture, solar panels, sustainability, among other things into the proposed development. The maximum tax credit award per application is $1,000,000 in annual credits.