LOW-INCOME HOUSING TAX CREDIT SHOWCASE

LIHTC Timeline
In 1986, Congress passed The
Tax Reform Act, which included
the introduction of Internal
affordable housing program
enacted by Congress.
Revenue Code Section 42: The 1986
Low-Income Housing Tax Credit.
Tax Reform Act
As
of
successful
1986
as the program
The LIHTC program is widely creates low-income is, it was only a temporary part of
1986 housing tax credit
Tax (LIHTC) Reform designed Act of 1986 to
creates replace 1986
low-income inefficient, poorly
1986 housing targeted Tax Reform tax incentives. Act credit of 1986
Ronald Reagan
George H.W. Bush
Tax (LIHTC) creates low-income
Reform designed Act of 1986 to
creates replace housing
low-income inefficient, tax credit poorly
Ronald Reagan
housing targeted (LIHTC) designed
tax incentives. to
credit
replace inefficient, poorly George H.W. Bush
(LIHTC) designed to
targeted incentives.
Ronald Reagan replace inefficient, poorly George H.W. Bush
Ronald Reagan
targeted incentives.
George H.W. Bush
1980s 1980s 1980s
1990s 1990s 1980s 1990s
2000s 2000s 1990s 2000s
Bill Clinton
Ronald Reagan
Bill Clinton
Bill Clinton
Bill Clinton
George W. Bush
Bill Clinton
George W. Bush
George W. Bush
George W. Bush
www.novoco.com
recognized as the most efficient
1992
1986
The U.S. Department of the Treasury establishes
Tax Reform Act of 1986
the procedure for state and local housing credit
creates low-income
1992 agencies to monitor LIHTC compliance.
housing tax credit
The U.S. Department of the Treasury establishes
1992 (LIHTC) designed to
the replace procedure inefficient, for state poorly and local housing credit
1992 agencies The U.S. Department to monitor LIHTC of the compliance. Treasury establishes
targeted incentives.
the procedure for state and local George housing H.W. credit Bush
The U.S. Department of the Treasury establishes
agencies to monitor LIHTC compliance.
the procedure for state and local housing credit
agencies to monitor LIHTC compliance.
the Internal Revenue Code (IRC)
until 1993, when President Bill
Clinton signed it into law. The
LIHTC program has continued
to mature and improvements
and adjustments to the program
1989 have been signed into law by each
Program
president
extended
since
temporarily
it was made
and
a
strengthened. permanent States part of to allocate the IRC. credits
1989 according to their housing needs priorities and
Program to underwrite extended transactions temporarily to ensure and credits
1989
strengthened. are limited to amounts States to necessary allocate credits to achieve
1989 according the Program financial extended to feasibility their housing temporarily and needs long-term and priorities viability and
Program to of strengthened. underwrite the developments.
extended transactions States to allocate
temporarily to ensure credits
and credits
strengthened. are according limited to to their amounts housing
States to necessary needs priorities
allocate credits to achieve and
according the to underwrite financial to feasibility transactions
their housing and to
needs long-term ensure credits
priorities viability and
to of are
underwrite the limited developments. to amounts necessary to achieve
transactions to ensure credits
the financial feasibility and long-term viability
are limited to amounts necessary to achieve
of the developments.
the financial feasibility and long-term viability
of the developments.
1993
1989
LIHTC is made a permanent part of
Program extended temporarily and
the Internal Revenue Code, with
strengthened. States to allocate credits
1993 strong bipartisan support.
according to their housing needs priorities and
LIHTC is made a permanent part of
1993 to underwrite transactions to ensure credits
the are limited Internal to Revenue amounts Code, necessary with to achieve
1993 strong LIHTC is bipartisan made a permanent support. part of
the financial feasibility and long-term viability
the Internal Revenue Code, with
LIHTC of the developments.
is made a permanent part of
strong bipartisan support.
the Internal Revenue Code, with
strong bipartisan support.
2000 2008
Per capita allocation authority for LIHTC is
Program is further strengthened to give
increased by 40% and indexed for inflation, again states increased flexibility to reach
2000 with huge bipartisan support; 86% of House 2008 difficult-to-serve populations and places.
1992
1993
Per members capita and allocation 81% of authority senators for cosponsored LIHTC is
Program is further strengthened to give
increased legislation The 2000 U.S. Department
by proposing 40% and this of the
indexed expansion. Treasury establishes 2008
for inflation, again states In LIHTC 2008, is
increased Congress made a permanent
flexibility enacted to a part
reach temporary of
2000 with Per the procedure capita huge bipartisan allocation for state authority and local
support; 86% for housing LIHTC of House is credit
2008 difficult-to-serve 10 Program the percent Internal is increase further Revenue
populations strengthened for Code, the maximum with
and to places. give
Per members increased agencies to
capita and by monitor 40%
allocation 81% and LIHTC
of authority senators indexed compliance.
for cosponsored for inflation, again allocation states strong increased bipartisan amount flexibility support. per state to from reach $2.00 to
LIHTC is
Program is further strengthened to give
increased legislation with huge bipartisan
by proposing support;
40% and this indexed expansion. 86% of House
for inflation, again states In $2.20 difficult-to-serve 2008, per
increased Congress capita. populations
flexibility enacted to a reach temporary and places.
members and 81% of senators cosponsored
with huge bipartisan support; 86% of House difficult-to-serve 10 percent increase populations for the maximum and places.
legislation proposing this expansion.
members and 81% of senators cosponsored allocation In 2008, Congress amount per enacted state a from temporary $2.00 to
legislation proposing this expansion.
In $2.20 10 percent
2008, Congress capita. increase for the maximum
enacted a temporary
allocation amount per state from $2.00 to
10 percent increase for the maximum
$2.20 per capita.
allocation amount per state from $2.00 to
$2.20 per capita.
2000 2008
Per capita allocation authority for LIHTC is
Program is further strengthened to give
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