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Program Description As part of the Tax Reform Act of 1986, the United States Congress created the Low-Income Housing Tax Credit (LIHTC) (IRC Section 42) Program to promote the development of affordable rental housing for low-income individuals and families.

The equity investment reduces the debt burden on the tax credit property, making it financially feasible to offer lower, more affordable rents. Often institutional investors such as banks use the tax credits and real estate losses to lower their federal tax liabilities.

A tax credit reduces the specific amount of the tax that an individual owes. For example, say that you have a $500 tax credit and a $3,500 tax bill. The tax credit would reduce your bill to $3,000. Refundable tax credits do provide you with a refund if they have money left over after reducing your tax bill to zero.

The TDHCA Housing Tax Credit (HTC) Program is one of the primary means of directing private capital toward the development and preservation of affordable rental housing for low-income households.

The Low-Income Housing Tax Credit provides a tax incentive to construct or rehabilitate affordable rental housing for low-income households. The Low-Income Housing Tax Credit (LIHTC) subsidizes the acquisition, construction, and rehabilitation of affordable rental housing for low- and moderate-income tenants.

To be eligible for Section 8 housing in Arizona, applicants must meet certain requirements, including income limits and family size. The income limits vary depending on the area and size of the family, but generally, applicants must earn less than 50% of the median income for their area.

The LIHTC program provides the credits to reduce developers' costs in return for developers agreeing to reserve a certain percentage of rent-restricted units for lower-income families. Most kinds of properties (single-family, multi-family, apartment complexes, and townhouses) can qualify for the LIHTC credit.