low-income housing tax credits

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.

References in periodicals archive ?
In its sixth survey of owners of properties financed with federal low-income housing tax credits from the Low-Income Housing Tax Credit (LIHTC), CohnReznick found that housing tax credit properties are operating better than any period in the program's history, an encouraging sign as the study also details the rising number of low-income renters who need affordable housing.
The $12,250,000 purchase and financing of Berkeley Terrace was made possible using Tax Exempt , Bonds and Low-Income Housing Tax Credits, which will permit Candlebrook to renovate the property.
Competition for the low-income housing tax credits is intense.
a privately-held national leading syndicator of low-income housing tax credits (LIHTC), said it has closed USD175 million of Alliant Tax Credit Fund 83.
There, the court held that low-income housing tax credits (LIHTC) and accompanying property restrictions affect the amount that a willing buyer would pay to purchase real estate and thus the fair market value of the property.
Patrick announced May 9 that Paxton's senior housing project, planned for 30 acres of town-owned land on Holden Road, was one of 31 across the state that had been granted federal subsidies and state and federal low-income housing tax credits.
99 million in federal low-income housing tax credits, another $250,000 in state tax credits and $8.
The Enterprise Foundation will provide up to $75 million in private equity to developers from the sale of low-income housing tax credits.
Low-income housing tax credits (produced about 700,000 units) provide tax incentives for private equity investment and are often used in conjunction with other federal, state, and local government and private subsidies in the production of new and rehabilitated affordable housing units consistent with state-determined housing priorities.
Major sources of funding for these projects are mitigation fees, inclusionary zoning in-lieu fees, low-income housing tax credits and Community Redevelopment Agency tax increment bond proceeds.
Beyond the typical for-profit corporate "investor" individual investors, estates, and trusts can also use the low-income housing tax credits.
Klaiber has specialized in accounting projects for all phases of the real estate industry, including HUD properties, rehabilitation and low-income housing tax credits.

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