LIHTC
Government & Politics abbreviation · Public Program
| Stands for | Low-Income Housing Tax Credit |
|---|---|
| Categories | Government & Politics |
LIHTC stands for Low-Income Housing Tax Credit, a public program abbreviation also used in business.
Federal tax credit that states award to developers who build or rehabilitate rental housing with rents restricted for low-income households, typically those earning up to 60 percent of area median income. It is the largest source of new affordable rental housing in the United States.
Example: The 80-unit building was financed with 9 percent LIHTC credits sold to a bank.
Usage notes
Dating from the Tax Reform Act of 1986, it is administered by state housing finance agencies, which allocate credits under competitive plans. Developers usually sell the credits to investors to raise equity. Affordability must be maintained for at least 15 years, typically 30 or more. It is often pronounced "LIE-tech".
Related abbreviations
More public program abbreviations
- FWS – Federal Work-Study
- H-1B – H-1B specialty occupation visa
- HCBS – Home and community-based services
- HCV – Housing Choice Voucher
- IDR – Income-driven repayment
- LIHEAP – Low Income Home Energy Assistance Program
- LPR – Lawful permanent resident
- MA – Medicare Advantage
- MAGI – Modified adjusted gross income
- MSP – Medicare Savings Program
- NFIP – National Flood Insurance Program
- NRA – National Recovery Administration