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Home > Seek Grants and Loans > Funding Directory > Tax Incentive or Tax Credit > Low Income Housing Investment Tax Credit
The Tax Reform Act of 1986 (IRC Section 42) also established an investment tax credit for acquisition, construction or rehabilitation of low- income housing. The credit is approximately 9% per year for 10 years for each unit acquired, constructed, or rehabilitated without other Federal subsidies and approximately 4% for 10 years for units involving the 20% rehabilitation tax credit, Federal subsidies or tax exempt bonds. Units must meet tests for cost per unit and number of units occupied by individuals with incomes below area median income. The law sets a 15 -year compliance period. Credits are allocated by State Housing Credit Agencies.
For more information contact Connecticut Housing Finance Authority (CHFA) - link is provided below.
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