Low Income Housing Tax Credit Gets Boost from Spending Bill
WASHINGTON — Congress approved a significant increase in the Low Income Housing Tax Credit program in passing a trillion-dollar budget bill last week.
This is the first increase in the tax credit in “over a decade,” Sen. Maria Cantwell, D-Wash., a longtime champion of the program, said in a press release.
The program currently provides states and local LIHTC-allocating agencies with nearly $8 billion in annual budget authority to issue tax credits for the acquisition, rehabilitation or new construction of rental housing targeted to lower-income households.
The Cantwell provision will increase the allocation of LIHTCs by 12.5% over the next four years, at a cost of nearly $3 billion.