How To Get A Low Income Housing Tax Credit
Learn how to get a low income housing tax credit is as easy as following these simples steps, and it just might save you a ton of money. If you are a developer who is seeking more capital in order to developer residential areas, then this is the best tax credit for you. While just like any other government credit, you will be tangled with bureaucratic redtape, but that does not mean that you will not get the fund at last. This guide will get you started on getting a low income housing tax credit.
- What is a low income housing tax credit? According to the Department of Housing and Urban Development, low income housing tax credit is a federal tax credit program build on the Fair Housing Act in order to make low income housing available to general public. The IRS will give tax credit for taxpayer in order to develop and make those housing available to general public.
- How does it work? The IRS gives out tax credit to a large portion of the cost that incurred on the development of these low income housing. Developer can use these tax credits to get more investment from investors. In return, the developer agrees to let low income tenants to rent these housing units.
- How to apply? Developers must submit a comprehensive plan to the proper state authority. They will be evaluated based on competitiveness of such project. You have to make sure that you qualify for the low income housing tax credit. You can find a detail and comprehensive requirements on the Department of Housing and Urban Development.