Revises provisions relating to transferable tax credits for affordable housing. (BDR 32-437)

2025 Session (83rd) A AB62 949

JFD/BJF - Date: 5/31/2025

A.B. No. 62—Revises provisions relating to transferable tax credits for affordable
housing. (BDR 32-437)
Page 1 of 8 *A_AB62_949*
Amendment No. 949

Assembly Amendment to Assembly Bill No. 62 (BDR 32-437)
Proposed by: Assembly Committee on Ways and Means
Amends: Summary: No Title: No Preamble: No Joint Sponsorship: No Digest: Yes

ASSEMBLY ACTION Initial and Date | SENATE ACTION Initial and Date
Adopted Lost | Adopted Lost
Concurred In Not | Concurred In Not
Receded Not | Receded Not
EXPLANATION: Matter in (1) blue bold italics is new language in the original
bill; (2) variations of green bold underlining is language proposed to be added in
this amend ment; ( 3) red strikethrough is deleted language in the original bill; ( 4)
purple double strikethrough is language proposed to be deleted in this amendment;
(5) orange double underlining is deleted language in the original bill proposed to be
retained in this amendment.

Assembly Amendment No. 949 to Assembly Bill No. 62 Page 3

ASSEMBLY BILL NO. 62–COMMITTEE ON REVENUE

(ON BEHALF OF THE ADVISORY COMMITTEE ON HOUSING)

PREFILED NOVEMBER 20, 2024
_______________

Referred to Committee on Revenue

SUMMARY—Revises provisions relating to transferable tax credits for affordable
housing. (BDR 32-437)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State: Yes.

~

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

AN ACT relating to taxation; revising the procedure for applying for transferable
tax credits for affordable housing; revising provisions governing the
transfer of transferable tax credits for affordable housing; revising
provisions relating to the amount of transferable tax credits for
affordable housing that may be approved; revising provisions relating
to the expiration of transferable tax credits for affordable housing; and
providing other matters properly relating thereto.

Legislative Counsel’s Digest:
Existing law authorizes the Housing Division of the Department of Business and Industry 1
to issue transferable tax credits, which are authorized to be taken against certain state taxes, to 2
the sponsor of a project for the a cquisition, development, construction, improvement, 3
expansion, reconstruction or rehabilitation of low income housing, as defined by existing 4
federal law. (NRS 360.860 -360.870; 26 U.S.C. § 42) Under existing law, to be issued 5
transferable tax credits, the project sponsor is required to: (1) apply to, and obtain from, the 6
Division a reservation of an amount of transferable tax credits; (2) close the project within a 7
certain period after obtaining a reservation of transferable tax credits by acquiring title t o the 8
project site, entering into an agreement with a licensed contractor to construct the project and 9
obtaining certain financing for the project; and (3) submit to the Division a final application 10
for the issuance of transferable tax credits not less tha n 45 days before the project closes. A 11
project sponsor that is issued transferable tax credits is authorized to transfer those credits to 12
another entity, and that entity is authorized to transfer the credits to one or more of its 13
subsidiaries or affiliates. (NRS 360.867) 14
Section 1 of this bill: (1) requires, with certain exceptions, a final application for the 15
issuance of transferable tax credits to be submitted not less than 15 days before the closing of 16
the project rather than not less than 45 days befor e the closing of the project; (2) authorizes a 17
project sponsor to demonstrate the acquisition of the land to close the project by entering into 18
a long-term ground lease for the project site; and (3) authorizes a project sponsor to transfer 19
transferable tax credits to a member or partner of the project sponsor to any other entity, who 20
may then transfer the transferable tax credits to another entity. 21
Existing law limits to $10,000,000 the amount of transferable tax credits which the 22
Division is authorized to approve in each fiscal year, with certain exceptions. If the Division 23
determines that approval of more than $10,000,000 of transferable tax credits in a fiscal year 24

Assembly Amendment No. 949 to Assembly Bill No. 62 Page 4

is necessary to ensure the maximum development of affordable housing through the issuance 25
of transferable tax credits, the Division is authorized to approve not more than $13,000,000 of 26
transferable tax credits in that fiscal year and must reduce the amount of transferable tax 27
credits authorized to be approved in the next fiscal year by the amo unt of credits that are 28
approved in excess of $10,000,000. (NRS 360.868) Section 2 of this bill provides that any 29
such reduction to the amount of transferable tax credits authorized to be approved in a fiscal 30
year must first reduce the amount of unused transferable tax credits from prior fiscal years that 31
are available for approval before the amount of transferable tax credits available for approval 32
in a fiscal year is reduced below $10,000,000. Additionally, [section 2 increases from 33
$40,000,000 to $100,000,000 the total amount of transferable tax credits for affordable 34
housing that the Division is authorized to approve for all fiscal years. Finally, ] section 2 35
provides that the 4 -year period during which transferable t ax credits may be used begins on 36
the date on which the Division notifies the project sponsor that transferable tax credits will be 37
issued rather than on the date on which the Division issues the transferable tax credits. 38

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 360.867 is hereby amended to read as follows: 1
360.867 1. On behalf of a project, the project sponsor may apply to the 2
Division for a certificate of eligibility for transferable tax credits which may be 3
applied to: 4
(a) Any tax imposed by chapter 363A or 363B of NRS; 5
(b) The gaming license fees imposed by the provisions of NRS 463.370; 6
(c) Any tax imposed by chapter 680B of NRS; or 7
(d) Any combination of the fees and taxes described in paragraphs (a), (b) and 8
(c). 9
2. To apply for a certificate of eligibility for transferable tax credits, the 10
project sponsor must: 11
(a) Submit an application on a form prescribed by the Division; and 12
(b) Comply with the requirements to obtain an allocation of federal low -13
income housing tax credits which are set forth in the qualified allocation plan. 14
3. The Division shall: 15
(a) Review each application for a certificate of eligibility for transferable tax 16
credits submitted pursuant to subsection 2 and any supporting documents to 17
determine whether the requirements for eligibility for a reservatio n of transferable 18
tax credits are met and the amount of transferable tax credit threshold points 19
awarded to the project; 20
(b) Determine the amount of transferable tax credits for which the project may 21
be eligible, which amount must equal the amount determ ined by the Division to be 22
necessary to make the project financially feasible after considering all other sources 23
of financing for the project; and 24
(c) Reserve the amount of transferable tax credits for which each project is 25
determined to be eligible purs uant to paragraph (b) in the order of the amount of 26
transferable tax credit threshold points awarded to each such project pursuant to 27
paragraph (a) until a reservation is made for each project or the amount of 28
transferable credits reserved for the fiscal y ear is equal to the amount of 29
transferable tax credits which the Division is authorized to approve for the fiscal 30
year pursuant to NRS 360.868, whichever occurs first. If the amount of transferable 31
tax credits reserved for the fiscal year reaches the amoun t of transferable tax credits 32
which the Division is authorized to approve for the fiscal year pursuant to NRS 33
360.868 before each eligible project is reserved the full amount of transferable tax 34
credits for which it is determined to be eligible pursuant to paragraph (b), the 35

Assembly Amendment No. 949 to Assembly Bill No. 62 Page 5

Division may take any action that the Division determines will ensure the 1
maximum development of affordable housing in this State, including, without 2
limitation, proportionally reducing the reservation of each project for which 3
transferable tax credits are reserved or reserving for the last project to receive a 4
reservation of transferable tax credits an amount of transferable tax credits that is 5
less than the full amount of transferable tax credits for which the project was 6
determined to be eligible pursuant to paragraph (b). 7
4. If the Division reserves transferable tax credits for a project pursuant to 8
subsection 3, the Division shall provide written notice of the reservation which 9
identifies the amount of the tax credits reserved for the project to: 10
(a) The project sponsor; 11
(b) The Department; 12
(c) The Nevada Gaming Control Board; 13
(d) The Office of Finance; and 14
(e) The Fiscal Analysis Division of the Legislative Counsel Bureau. 15
5. The Division: 16
(a) Shall terminate a reservation of transferable tax credits if the project for 17
which the reservation is awarded is not closed within the period specified in 18
paragraph (a) of subsection 6 unless, before the expiration of that period, the 19
Division receives from the project sponsor a written request for an extension of not 20
more than 45 days. The Division may grant only one extension pursuant to this 21
paragraph and, if the project is not closed before the expiration of the extension 22
period, the Division must term inate the reservation of transferable tax credits. A 23
request for an extension submitted pursuant to this paragraph must be accompanied 24
by proof satisfactory to the Division that: 25
(1) The requirements for financing the project have been substantially 26
completed; 27
(2) The delay in closing was the result of circumstances that could not have 28
been anticipated by and were outside the control of the project sponsor at the time 29
the application was submitted by the project sponsor; and 30
(3) The project will be cl osed not later than 45 days after the Division 31
receives the request. 32
(b) May terminate a reservation of transferable tax credits if the Division 33
determines that any event, circumstance or condition occurs for which a reservation 34
of federal low -income hous ing tax credits may be terminated. If transferable tax 35
credits are terminated pursuant to this paragraph, the Division may issue a 36
reservation for the amount of transferable tax credits terminated to other projects 37
eligible for transferable tax credits in the order of the amount of transferable tax 38
credit threshold points awarded to each such project pursuant to paragraph (a) of 39
subsection 3. 40
6. Except as otherwise provided in this section, to be issued transferable tax 41
credits: 42
(a) Not later than 270 da ys after the Division provides written notice of the 43
reservation of transferable tax credits pursuant to subsection 4, the project sponsor 44
must demonstrate to the Division that the project has been closed by providing 45
proof satisfactory to the Division that the project sponsor has: 46
(1) Purchased and holds title in fee simple to , or has entered into a long -47
term ground lease for, the project site in the name of the project sponsor. 48
(2) Entered into a written agreement with a contractor who is licensed in 49
this State to begin construction. 50
(3) Obtained adequate financing for the construction of the project. The 51
applicant must provide written commitments or contracts from third parties. 52

Assembly Amendment No. 949 to Assembly Bill No. 62 Page 6

(4) Executed a written commitment for a loan for permanent financing for 1
the construction of the project in an amount that ensures the financial feasibility of 2
the project. The commitment may be subject to the condition that the construction 3
is completed and the project is appraised for an amount sufficient to justify the loan 4
in accordance with the requirements of the lender for credit. If the project is a rural 5
development project that receives loans or grants from the United States 6
Department of Agriculture, the applicant must provide a form approved by the 7
Division that indicates that money has been obligated for the construction of the 8
project before the expiration of the period. An advance of that money is not 9
required before the expiration of the period. 10
(b) Not less than [45] 15 days before the project is closed, th e project sponsor 11
must submit to the Division a final application for transferable tax credits on a form 12
provided by the Division and such other information as the Division deems 13
necessary to determine whether the project qualifies for the issuance of tran sferable 14
tax credits. Upon receipt of a final application pursuant to this paragraph, the 15
Division shall complete a review of the project and the project sponsor. If, after 16
such review, the Division determines that the project complies with the 17
requirements upon which transferable tax credits were reserved pursuant to this 18
section and a declaration of restrictive covenants and conditions will be recorded in 19
the office of the county recorder for the county in which the project is located: 20
(1) The Division shall: 21
(I) Determine the appropriate amount of transferable tax credits for the 22
project, which must be the amount the Division determines is necessary to make the 23
project financially feasible after all other sources of funding are allocated and paid 24
toward the final cost of the project and may not exceed the amount of transferable 25
tax credits reserved for the project pursuant to this section; and 26
(II) Notify the project sponsor that the transferable tax credits will be 27
issued; 28
(2) Within 30 days after the receip t of the notice, the project sponsor shall 29
make an irrevocable declaration of the amount of transferable tax credits that will 30
be applied to each fee or tax set forth in subsection 1, thereby accounting for all of 31
the credits which will be issued; and 32
(3) Upon receipt of the declaration described in subparagraph (2), the 33
Division shall issue transferable tax credits to the project sponsor in the amount 34
approved by the Division. The project sponsor may transfer the transferable tax 35
credits to a member or p artner of the project sponsor or to any other entity. The 36
project sponsor shall notify the Division upon transferring any transferable tax 37
credits. An entity to which a project sponsor transfers any transferable tax credits 38
may transfer those transferable tax credits to one or more of its subsidiaries or 39
affiliates and shall notify the Division upon making any such transfer. The Division 40
shall notify the Department of Taxation, the Office of Finance, the Fiscal Analysis 41
Division of the Legislative Counsel B ureau and the Nevada Gaming Control Board 42
of all transferable tax credits issued, segregated by each fee or tax set forth in 43
subsection 1, and of all transferable tax credits transferred, segregated by each fee 44
or tax set forth in subsection 1. 45
7. Upon c ompletion of the project, the project sponsor shall submit to the 46
Division a certification of costs on a form provided by the Division and such other 47
information as the Division deems necessary to determine the final cost of the 48
project. If, based upon the final cost of the project indicated in the certification of 49
costs, the Division determines that the amount of transferable tax credits issued by 50
the Division to the project sponsor is greater than the amount of transferable tax 51
credits to which the project sponsor is entitled: 52

Assembly Amendment No. 949 to Assembly Bill No. 62 Page 7

(a) The Division shall notify the project sponsor, the Department of Taxation, 1
the Office of Finance, the Fiscal Analysis Division of the Legislative Counsel 2
Bureau and the Nevada Gaming Control Board that the project sponsor is req uired 3
to repay the portion of the transferable tax credits to which the project sponsor is 4
not entitled. The notice must specify the amount of transferable tax credits that the 5
project sponsor is required to repay. 6
(b) The project sponsor shall repay to t he Department of Taxation or the 7
Nevada Gaming Control Board, as applicable, the portion of the transferable tax 8
credits to which the project sponsor is not entitled. 9
8. The project sponsor may submit a request to the Administrator of the 10
Division to protect from disclosure any information in the application which, under 11
generally accepted business practices, would be considered a trade secret or other 12
confidential proprietary information of the business. After consulting with the 13
business, the Administra tor of the Division shall determine whether to protect the 14
information from disclosure. The decision of the Administrator of the Division is 15
final and is not subject to judicial review. If the Administrator of the Division 16
determines to protect the information from disclosure, the protected information: 17
(a) Is confidential proprietary information of the business; 18
(b) Is not a public record; 19
(c) Must be redacted by the Administrator of the Division from any copy of the 20
application that is disclosed to the public; and 21
(d) Must not be disclosed to any person who is not an officer or employee of 22
the Division unless the lead participant consents to the disclosure. 23
9. The Division may adopt any regulations necessary to carry out the 24
provisions of NRS 360.860 to 360.870, inclusive. 25
10. The Nevada Tax Commission and the Nevada Gaming Commission: 26
(a) Shall adopt regulations prescribing the manner in which transferable tax 27
credits described in this section will be administered. 28
(b) May adopt any other regulations that are necessary to carry out the 29
provisions of NRS 360.860 to 360.870, inclusive. 30
11. As used in this section: 31
(a) “Affiliate” means a person who, directly or indirectly through one or more 32
intermediaries, controls, is controlled by or is under common control with a 33
specified person. 34
(b) “Certification of costs” means a report from an independent certified public 35
accountant attesting: 36
(1) To the amount of the actual costs of construction of the project; and 37
(2) That those costs may be included in the eligible basis of the project 38
pursuant to the provisions of 26 U.S.C. § 42. 39
(c) “Subsidiary” means an entity in which a person owns beneficially or of 40
record 50 percent or more of the outstanding equity interests. 41
(d) “Transferable tax c redit threshold points” means points awarded based on 42
specific objectives determined by the Division through the dissemination of a 43
strategic plan for the development of affordable housing created by the Division, 44
the review of housing data and the receipt of input from persons interested in the 45
development of affordable housing. 46
Sec. 2. NRS 360.868 is hereby amended to read as follows: 47
360.868 1. Except as otherwise provided in this subsection, the Division 48
shall not app rove any application for transferable tax credits submitted pursuant to 49
NRS 360.867 if: 50
(a) Approval of the application would cause the total amount of transferable 51
tax credits approved pursuant to NRS 360.867 for each fiscal year to exceed 52
$10,000,000. Any portion of the $10,000,000 per fiscal year for which transferable 53

Assembly Amendment No. 949 to Assembly Bill No. 62 Page 8

tax credits have not previously been approved may be carried forward and made 1
available for approval during the next or any future fiscal year. If the Division 2
determines that approval of an application that would cause the total amount of 3
transferable tax credits approved pursuant to NRS 360.867 in a fiscal year to exceed 4
$10,000,000 is necessary to ensure the maximum development of affordable 5
housing in this State through the approval of transferable tax credits pursuant to 6
NRS 360.867, the Division may approve the application unless the approval of the 7
application would cause the total amount of transferable tax credits approved 8
pursuant to NRS 360.867 in the fiscal year to exceed $13,00 0,000. If the Division 9
approves an application for transferable tax credits that causes the total amount of 10
transferable tax credits approved pursuant to NRS 360.867 in a fiscal year to exceed 11
$10,000,000, the Division must reduce the amount of transferable tax credits which 12
may be approved pursuant to NRS 360.867 in the next fiscal year by the amount of 13
transferable tax credits approved in excess of $10,000,000 in the previous fiscal 14
year. Any reduction made pursuant to this paragraph to the amount of 15
transferable tax credits which may be approved pursuant to NRS 360.867 in a 16
fiscal year must be made to the amount of carried forward transferable tax 17
credits available for approval in a fiscal year before the amount of transferable 18
tax credits which may be approved in a fiscal year is reduced below $10,000,000. 19
(b) Approval of the application would cause the total amount of transferable 20
tax credits approved for all fiscal years pursuant to NRS 360.867 to exceed 21
$40,000,000. [$100,000,000.] 22
2. The transferable tax credits issued to a project sponsor pursuant to NRS 23
360.867 expire 4 years after the date on which the Division notifies the project 24
sponsor that the transferable tax credits [are] will be issued [to the project sponsor.] 25
as required by subsection 6 of NRS 360.867. 26
Sec. 3. This act becomes effective on July 1, 2025. 27