What is the Low Income Housing Tax Credit Program?
The Low-Income Housing Tax Credit Program is a tool for private developers and non-profit entities to construct or rehabilitate affordable rental units. Federal and state tax credits may be used to obtain a dollar-for-dollar reduction in income tax liability for 10 years or to obtain equity for a project through syndication of the credits. The program may be used with other state and federal programs to increase the feasibility of a rental project. Some of these other programs include a combination of rental subsidy under several Federal programs, low-cost interim construction loans available from the state, low-cost loans or grants from the Rental Housing Trust Fund, and a waiver of the 4% general excise tax. Who is eligible to use the program? Any individual, corporation, partnership, trust or other legal entity can utilize low-income housing tax credits if it has sufficient taxable income to be offset by the credits. Individuals may be limited in the amount of credit they are eligib
