SB 531 - This act modifies the low-income housing tax credit program and the historic preservation tax credit program. The Department of Revenue is required to apply any increase in revenue generated from capping these tax credit programs to a decrease in the personal income tax rate to begin on January 1, 2016. The Department of Revenue is required to accomplish this decrease in the personal income tax rate by rule. LOW-INCOME HOUSING TAX CREDITS The act establishes a one hundred ten million dollar cap for authorizations of 9% low-income housing tax credits for FY 2014. For each subsequent fiscal year from FY 2015 to FY 2017 the amount of 9% low-income housing tax credits which may be authorized is gradually reduced such that beginning FY 2017, no more than seventy million dollars in 9% low-income housing tax credits may be authorized each fiscal year. Authorizations of 4% low-income housing tax credits are capped at fifteen million dollars for FY 2014. For each subsequent fiscal year the amount of 4% low-income housing tax credits which may be authorized is reduced by five million dollars. After June 30, 2016, no 4% low-income housing tax credits may be authorized. The act prohibits the authorization of low-income housing tax credits after August 28, 2018. The stacking of state 9% low-income housing tax credits with state historic preservation tax credits for the same project is prohibited. The carry-back for low-income housing tax credits is reduced from three years to two years. HISTORIC PRESERVATION TAX CREDITS Under current law, the Department of Economic Development is prohibited from issuing more than one hundred forty million dollars in historic preservation tax credits in any fiscal year for projects which will receive more than two hundred and seventy-five thousand dollars in tax credits. Beginning fiscal year 2014, and each fiscal year thereafter, this act would prohibit the Department of Economic Development from approving more than eighty million dollars in historic preservation tax credits increased by the amount of any recisions of approved applications for tax such credits. Projects which would receive less than two hundred seventy-five thousand dollars in tax credits will be subject to a ten million dollar fiscal year cap. Non-Income Producing Residential Projects: The act prohibits the department from issuing more than one hundred twenty-five thousand dollars in historic preservation tax credits per project for non-income producing residential rehabilitation projects. Transition Rules: Applicants for projects that, as August 28, 2012, have: received approval from the Department of Economic Development; incurred certain levels of expenses; or received certification from the state historical preservation officer will not be subject to the new limitations on tax credit issuance, but will be subject to the current law limitations on tax credit issuance. Stacking: The act also prohibits the stacking of state historic preservation tax credits with state 9% low-income housing tax credits. Historic preservation tax credits will now be capable of being carried back one year or forward five years. EMILY KALMER