The Low-Income Housing Tax Credit (LIHTC)

The Low-Income Housing Tax Credit (LIHTC) is a program that encourages private developers to build affordable rental housing for low-income individuals and families. Investors provide funding for these projects in exchange for tax credits, which reduce their tax liabilities over a period of years. This incentivizes the creation and preservation of affordable housing, addressing housing shortages for those with limited incomes. Essentially, LIHTC leverages private investment to support the development of safe, affordable living options for vulnerable populations while offering investors a financial benefit.