“Why Use the Low Income Housing Tax Credit to Support Housing Development?” FAQ 2

Why is this important? Some of these questions may seem aggressive, yet they are in the context of the community and how they were asked.

The Tax Break-Down: The Low-Income Housing Tax Credit

• The Cost of the LIHTC are roughly a third of the size of outlays for Section 8 housing vouchers.
  • A large share of LIHTC credits (specifically, the 9 percent credits) are capped based on the per-capita allotment to state housing agencies each year and, therefore, provide a set amount of federal funding committed to support low-income housing, unlike support given through other programs, which can vary from year-to-year (THE TAX BREAK-DOWN: THE LOW-INCOME HOUSING TAX CREDIT, 2015).