§ 47–4804. Recapture.

(a) An owner of a project that claims a District of Columbia low-income housing tax credit shall submit a copy of the statement issued by the Department with respect to the project at the time of filing the return required to be filed by the owner pursuant to § 47-1805.02. In the case of failure to attach the statement, a credit under this section shall not be allowed with respect to the project for that year until the copy is provided to the Chief Financial Officer and the Commissioner.

(b)(1) If under section 42 of the 1986 Internal Revenue Code, as amended and in effect for the taxable year, a portion of any federal low-income housing tax credits taken on a low-income qualified project is required to be recaptured, the District of Columbia low-income housing tax credit authorized by this chapter with respect to such qualified District of Columbia project shall also be recaptured by the Office of Chief Financial Officer or Commissioner of Insurance, Securities, and Banking. The District of Columbia recapture amount shall be equal to the amount of the District of Columbia low-income housing tax credits previously claimed times a fraction, the numerator of which shall be the amount of recaptured federal low-income housing tax credits and the denominator of which shall be the amount of federal low-income housing tax credits previously claimed.

(2) This subsection shall apply to District of Columbia low-income housing tax credits awarded before October 1, 2025.

(c)(1) If a project that claims a District of Columbia low-income tax credit, or the owner of such a project, is found to be non-compliant pursuant to § 47-4807, the Department may recapture credits held by the project or owner or impose a fine on the owner.

(2) This subsection shall apply to District of Columbia low-income housing tax credits awarded on or after October 1, 2025.