Tax credits for apartment development hit cap

DES MOINES, Iowa (AP) — A state tax credit program that has boosted apartment development in in Iowa has reached its cap, which could stall new projects.

The Des Moines Register reports (http://dmreg.co/1d7XEGa ) that the program has hit an annual $3 million cap. Under the program, developers can sell tax credits to help pay for projects.

Demand for the credits has outpaced capacity in recent years due to major apartment development. The program is designed for market-rate housing.

In the past few years, developers have applied to sell more than $11 million in credits for 18 projects around the state.

A spokeswoman for the Iowa Economic Development Authority, which runs the program, said this hadn’t been a problem in previous years.

Officials said the state legislature may take up this issue next year.

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Information from: The Des Moines Register, http://www.desmoinesregister.com

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