The Low-Income Housing Tax Credit (LIHTC) program is a federal funding subsidy, administered by states, for the purpose of building and rehabilitating affordable housing. Since its inception, the LIHTC program has created over three million housing units shared between more than forty-seven thousand projects. The amount of tax credit each state receives is based on population size or the federally set minimum, whichever is greater. There are federal laws that set minimally qualifying criteria for the projects that will receive tax credits; however, state Housing Finance Agencies have the authority to prioritize various housing developments, suited to their unique housing needs, through their Qualified Allocation Plan. Read our analysis of how States use QAPs for the Low-Income Housing Tax Credit.
Read the analysis here.