" Low-Income Housing Tax Credit (LIHTC) Program By U.S. Department of Housing and Community Development "


What is the Low-Income Housing Tax Credit ?

LIHTC provides an tax incentive for home developers to build, buy, and refurbish housing for low-income taxpayers.

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How Does Low Income Housing Tax Credit Work ?

Through LIHTC program, private investors receive a federal income tax credit as an incentive to make equity investments in affordable rental housing.

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What is the Type of LIHTC Credit ?

The LIHTC is composed of two major credit types, the 4% credit and 9% credit. Credits are redeemable every year for 10 years and calculated as 4 percent or 9 percent of the project’s qualified basis.

Who is Eligible for Low Income Housing Tax Credit ?

Both for-profit and nonprofit developers can qualify for the credit. In addition, the project must be retained as low-income housing for at least 30 years.


What are the Funding Limits of LIHTC ?

There is a $500,000 maximum tax credit award for a new assisted living project. There is a maximum credit award of $1,000,000 for any other project.


How to Apply for Low Income Housing Tax Credit ?

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Applicants must complete and submit the One Stop Housing Application.