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low-income housing tax credits

   Also found in: Wikipedia 0.01 sec.
Low-Income Housing Tax Credit
A dollar-for-dollar reduction in one's tax liability due to an investment in a housing complex for low and moderate income persons. The rent on this type of housing is controlled, so return on investment is minimal. The low-income housing tax credit provides some cash flow on these investments; as a result, it accounts for the vast majority of low-income housing investments in the United States. See also: Low-income housing limited partnership.

low-income housing tax credits

A package of allowed tax credits issued by the IRS to state housing agencies.The IRS has formulas for determining the size of credits issued to each state.The state housing agency then reviews applications from developers who wish to build or rehabilitate lowincome housing and receive the benefit of the tax credits. If approved, the state agency will then award a certain amount of tax credits to the developer,who may use them on its federal income taxes.



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Also provides for the use of low-income housing tax credits against the alternative minimum tax, which should expand the investor base for this key generator of affordable rental housing production.
The increased competition for low-income housing tax credits in Arkansas has had positive results with ADFA receiving superior applications and higher quality developments for the state.
5 million in equity through the sale of 4% low-income housing tax credits that were issued by the New York City Department of Housing Preservation and Development (HPD) and the sale of negotiable 421-a tax certificates.
 
 
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