LIHTC
Low-Income Housing Tax Credit
Expand affordable rental housing
Credit Rates
9% / 4%
Competitive / Bond
Units Built
3.7M+
Since 1986
Credit Period
10 Years
Annual claims
Program Details
Established
1986 (Tax Reform Act)
Administered By
IRS and State Housing Finance Agencies
Credit Structure
9% (competitive) or 4% (bond-financed) of eligible costs
Claim Period
10 years (credits claimed annually)
Eligible Projects
Affordable rental housing
Target Beneficiaries
Households at or below 60% AMI
Compliance Requirements
15-year compliance period (often extended to 30+ years)
Best Use Case
Cornerstone financing for affordable housing developments
9% vs 4% Credits
9% Credit (Competitive)
- •Approximately 9% of eligible costs annually for 10 years
- •Highly competitive allocation process
- •Best for new construction
- •Limited annual allocation per state
4% Credit (As-of-Right)
- •Approximately 4% of eligible costs annually for 10 years
- •Non-competitive, paired with tax-exempt bonds
- •Often used for acquisition/rehab
- •Unlimited if bonds are available
Ready to Explore LIHTC for Your Project?
Check your project's eligibility and connect with housing finance agencies.