Section 42 Lihtc

See section 12839 b of title 42.

Section 42 lihtc. The tax credit reform act of 1986 created the low income housing tax credit program lihtc. Irc 42 low income housing credit part i introduction and pre contact analysis. The program was created by federal law in 1986 the tax reform act of 1986 and it s administered by the irs.

Chapter 1 introduction. As part of the tax reform act of 1986 the united states congress created the low income housing tax credit lihtc irc section 42 program to promote the development of affordable rental housing for low income individuals and families. The program regulations are under section 42 of the internal revenue code.

Section 8 e 2 of the act was repealed by pub. Developers then receive a federal tax credit from the government. The section 42 low income housing tax credit lihtc program is a federal tax incentive that encourages private sector investors developers and lenders to finance construct and operate affordable housing.

It provides the hud sourced 30 very low 50 and low 80 income limits for the selected county. 101 625 title ii 289 b 1 nov. The irc 42 low income housing credit program was enacted by congress as part of the tax reform act of 1986 to encourage new construction and rehabilitation of existing buildings as.

Section 42 low income housing tax credits this program will calculate irc section 42 i 3 a low income housing tax credit lihtc rent and income limits for every county and for every metropolitan statistical area msa in the united states. Sets forth selection criteria to be used to determine housing priorities. 3 4 you may see an lihtc credit called a section 42 tax credit because it s based on section 42 of the federal tax law.

In accordance with section 42 each state allocating agency must have a qualified allocation plan qap or plan which. Section 42 housing is subsidized housing and a part of a federal tax program that allows builders and developers to provide affordable housing. 1 1991 but to remain in effect with respect to single room occupancy dwellings as authorized by subchapter iv 11361 et seq of chapter 119 of title 42.