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SB149 • 2025

AN ACT TO AMEND TITLE 9 AND TITLE 14 OF THE DELAWARE CODE RELATING TO PAYMENTS IN LIEU OF TAXES FOR LOW-INCOME HOUSING TAX CREDIT PROPERTIES.

AN ACT TO AMEND TITLE 9 AND TITLE 14 OF THE DELAWARE CODE RELATING TO PAYMENTS IN LIEU OF TAXES FOR LOW-INCOME HOUSING TAX CREDIT PROPERTIES.

Education Housing Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Last action
2025-05-15
Official status
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

AN ACT TO AMEND TITLE 9 AND TITLE 14 OF THE DELAWARE CODE RELATING TO PAYMENTS IN LIEU OF TAXES FOR LOW-INCOME HOUSING TAX CREDIT PROPERTIES.

AN ACT TO AMEND TITLE 9 AND TITLE 14 OF THE DELAWARE CODE RELATING TO PAYMENTS IN LIEU OF TAXES FOR LOW-INCOME HOUSING TAX CREDIT PROPERTIES.

What This Bill Does

  • AN ACT TO AMEND TITLE 9 AND TITLE 14 OF THE DELAWARE CODE RELATING TO PAYMENTS IN LIEU OF TAXES FOR LOW-INCOME HOUSING TAX CREDIT PROPERTIES.
  • This Act creates a uniform framework under which a county or municipality may enact an ordinance that exempts Low-Income Housing Tax Credit (LIHTC) properties from property taxes and instead, require that a LIHTC property make an annual payment in lieu of taxes equal to 5% of the LIHTC’s annual net income as reported to the Delaware State Housing Authority (DSHA).
  • Under this Act, a LIHTC property that is exempt from property taxes is also exempt from taxation by school districts.
  • Allowing LIHTC properties to make a payment in lieu of taxes, acknowledges the public benefit of the affordable housing provided by LIHTC properties.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

No action history is stored for this bill yet.

Official Summary Text

AN ACT TO AMEND TITLE 9 AND TITLE 14 OF THE DELAWARE CODE RELATING TO PAYMENTS IN LIEU OF TAXES FOR LOW-INCOME HOUSING TAX CREDIT PROPERTIES.
This Act creates a uniform framework under which a county or municipality may enact an ordinance that exempts Low-Income Housing Tax Credit (LIHTC) properties from property taxes and instead, require that a LIHTC property make an annual payment in lieu of taxes equal to 5% of the LIHTC’s annual net income as reported to the Delaware State Housing Authority (DSHA). Under this Act, a LIHTC property that is exempt from property taxes is also exempt from taxation by school districts.

Allowing LIHTC properties to make a payment in lieu of taxes, acknowledges the public benefit of the affordable housing provided by LIHTC properties. The Internal Revenue Service LIHTC was created in 1986 by the federal government to encourage a private/public investment to preserve and construct new affordable rental housing. Alone and in combination with tax exempt private activity bonds, the LIHTC has been the most productive source of affordable housing financing in the nation’s history. DSHA receives a