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An Introduction to the Low-Income Housing Tax Credit

An Introduction to the Low-Income Housing Tax Credit Updated January 26, 2021. Congressional Research Service RS22389. SUMMARY. RS22389. An Introduction to the Low-Income Housing January 26, 2021. Tax Credit Mark P. Keightley The Low-Income Housing tax Credit (LIHTC) program is the federal government's primary policy Specialist in Economics tool for encouraging the development and rehabilitation of affordable rental Housing . The program awards developers federal tax credits to offset construction costs in exchange for agreeing to reserve a certain fraction of units that are rent-restricted and for lower- income households. The credits are claimed over a 10-year period. Developers need upfront financing to complete construction so they will usually sell their tax credits to outside investors ( , corporations, financial institutions).

Jan 26, 2021 · response to concerns over the effects of P.L. 115-97, commonly referred to as the Tax Cuts and Jobs Act (TCJA). The changes made by TCJA did not directly alter the LIHTC program; however, the act reduced corporate taxes, which had the …

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  Income, Housing, Jobs, Cuts, Tax cuts and jobs act, Low income housing tax

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