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What Are Advantages of Low Income Housing Tax Credits for Housing Developers?

April 26, 2017advantages developers HOUSING income low tax credits

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What Are Advantages of Low Income Housing Tax Credits for Housing Developers?

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boring apartments image by green308 from Fotolia.com jQuery(document).ready(function(){ jQuery(‘#jsArticleStep1 span.image a:first’).attr(‘href’,’http://i.ehow.co.uk/images/a06/fs/7a/advantages-tax-credits-housing-developers_-1.1-800X800.jpg’); }); Low-income housing credits attract developers to build affordable housing. Many builders and housing developers take advantage of the Low Income Housing Tax Credits (LIHTC) program. This program functions as an indirect federal subsidy for affordable housing. The LIHTC provides funds for building and renovating rental housing for low-income households. Congress designed the tax credits to make development economically attractive and motivate investors and private developers to take on these projects. Some states also offer low income housing tax credits programs used in conjunction with the federal subsidy. How LIHTC Works Low income-housing tax credits reduce the federal income tax liability when applied. The investors who finance affordabl