CHAPTER 172
FORMERLY
SENATE BILL NO. 169
AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATED TO THE NEIGHBORHOOD ASSISTANCE TAX CREDIT.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend § 2002(2), Title 30, Delaware Code by inserting the words “and moderate” after the word “low” and before the word “income”.
Section 2. Amend § 2002 (3), (6), (7), and (9), Title 30, Delaware Code by inserting the words “or for low and moderate income families” immediately after the word “area”.
Section 3. Amend § 2002 (4), Title 30, Delaware Code by inserting the words “or to assist low and moderate income families” after the word “area” and before the "." at the end of the sentence.
Section 4. Amend § 2002(8), Title 30, Delaware Code by deleting the words “and approved by the Tax Appeal Board” and by deleting the words “Department of Health and Social Services” and inserting in lieu thereof the words “Delaware State Housing Authority.
Section 5. Amend § 2002, Title 30, Delaware Code by deleting § 2002(1) in its entirety and renumbering current "§ 2002(1) through § 2002(9)" as new "2002(1) through § 2002(8)" and inserting as new "§ 2002(9)" the following:
“(9) 'Low and moderate income family' means an individual or family whose total household income is at or below 80% of the Area Median Income as established by the federal Department of Housing and Urban Development.”
Section 6. Amend § 2002(10), Title 30, Delaware Code by inserting the words “or to assist low and moderate income families through the provision of community services, crime prevention, economic development, education, housing, and job training” after the word “area” and before “.”.
Section 7. Amend § 2002(11), Title 30, Delaware Code by striking §2002(11) in its entirety and inserting in lieu thereof new "§2002(11)" as follows:
“(11) 'Neighborhood organization' means any organization performing neighborhood assistance in an impoverished area or for low and moderate income families and holding a ruling from the Internal Revenue Service of the United States Department of the Treasury that the organization is exempt from income taxation under the provisions of the Internal Revenue Code, or any community development corporation or community-based development organization as defined in this section.”
Section 8. Amend § 2002, Title 30, Delaware Code by inserting a new "§ 2002(12)" to read as follows:
"(12) 'Person or Persons' shall include any individual; any form of company or corporation which is lawful within the State (including limited liability companies and S corporations), any form of partnership which is lawful within the State (including limited liability partnerships); and any trust or estate."
Section 9. Amend § 2003, Title 30, Delaware Code by deleting the words “Business firms” wherever they appear and inserting in lieu thereof the words “persons” and by deleting the words “and providing job training, education, crime prevention and community services,” and by inserting the words “or low and moderate income families” after the word “areas” and before the “.”.
Section 10. Amend § 2004, Title 30 Delaware Code by deleting "§ 2004" in its entirety and inserting a new "§ 2004" in lieu thereof as follows:
"§ 2004. Qualification for tax credit.
For each taxable period beginning on or after July 1, 2007, a person that contributes to a neighborhood organization or that provides neighborhood assistance in an impoverished area or for low and moderate income families shall receive a tax credit as provided in § 2005 of this title if the Director of the Delaware State Housing Authority annually approves the proposal of the taxpaying investor. The Director of the Delaware State Housing Authority shall promulgate rules and regulations for the approval or disapproval of such proposals by taxpaying investors.
A Neighborhood Assistance Act Advisory Council, whose members shall be appointed every two years by the Director of the Delaware State Housing Authority and comprising community development practitioners and representatives of the private and public sectors shall be established. The Neighborhood Assistance Act Advisory Council may provide guidance and recommendations to the Director of the Delaware State Housing Authority in establishing program priorities and mechanisms for the program to be conducted and determining the impoverished area(s) selected and the estimated amount to be invested in the program or neighborhood organization. The Neighborhood Assistance Act Advisory Council shall assist the Delaware State Housing Authority in establishing and promulgating rules and regulations for the approval or disapproval of proposals by taxpaying investors and neighborhood organizations."
Section 11. Amend § 2005, Title 30, Delaware Code by deleting the word “Corporate” and inserting in lieu thereof the word “State” in the title of the section.
Section 12. Amend § 2005(a), Title 30, Delaware Code by inserting the words “Chapter 11 or” after “under” and before “Chapter”; and by inserting the words “the personal income tax and” after “to” and before “the” and by deleting the word "Business Firm" and inserting in lieu thereof the word "person" and by deleting the words “community-based development organization” and by inserting in lieu thereof the words “neighborhood organization” and by deleting the words “per business” and inserting in lieu thereof the words “per person”.
Section 13. Amend §2006(b), Title 30, Delaware Code by deleting "§2006(b)" in its entirety and substituting in lieu thereof new "§2006(b)" as follows:
“(b) The Director of the Delaware State Housing Authority shall ensure that each application has the date and time of submission recorded. Credits will be awarded in chronological order based upon the date and time upon which each complete application is received by the Delaware State Housing Authority. If a credit award results in exceeding the $500,000 limitation for the fiscal year in which it is awarded, the amount by which such credit award exceeds $500,000 shall carry over to the succeeding fiscal year and shall receive priority for that year.”
Section 14. Amend § 2007, Title 30, Delaware Code by deleting the words "business firm" and inserting the word "person" and by deleting the words “January 1, 2000” and inserting in lieu thereof the words “July 1, 2007 that produce credits under §2005 of this title”.