LIHTC Alert: 9% Credit Rate for the Low-Income Housing Tax Credit Program Extended

January 2015LIHTC Alert header

The Housing Assistance Tax Act of 2008 created a minimum low-income housing tax credit for non-federally subsidized programs providing eligible taxpayers with a 9% tax credit calculated on their investment in qualified low-income housing projects. Despite the program being originally set to expire at the end of 2013, the original 9% credit rate has been extended for a second time as a result of the Tax Increase Prevention Act of 2014 which was signed into law in December. The credit rate freeze is currently extended for allocations made for non-federally subsidized buildings receiving a credit allocation before January 1, 2015.

W&G Observation: The extension of the 9% credit rate freeze is welcome news for investors and developers of LIHTC projects, both of whom are hopeful that this second extension will be a step towards making the credit a part of the yearly tax extender package.

Please contact Len Nitti (This email address is being protected from spambots. You need JavaScript enabled to view it.) or Melissa Marsicano (This email address is being protected from spambots. You need JavaScript enabled to view it.) if you have any questions about this alert.

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