Low-Income Housing Tax Credit
The Program
The low income housing tax credit is available under Section 42 of the Internal Revenue Code of 1986. The credit is a federal income tax credit for owners of qualifying rental housing which meets certain low income occupancy and rent limitation requirements.The credit is taken as a reduction in participants tax liability over a 10 year period. The credit can also be sold to investors to act as a financing source.
Except for certain buildings substantially financed with tax-exempt bonds, an owner must first obtain a credit allocation from the appropriate state agency before claiming the tax credit. The amount of tax credit which may be allocated annually for housing within each state is limited to $2.15 per state resident. The Montana Board of Housing (MBOH) is the state agency which allocates the tax credit for housing located in Montana. The Board will provide fixed rate mortgages for low income rental housing which meet underwriting eligibility and receive approval of HUD mortgage insurance.
News and Updates: as of 01/27/12
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2011 Low Income Housing Tax Credits Awarded This document contains:
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2012 Credit Authority is $2,525,000.00, |
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Applications are due by 5:00pm January 20, 2012 |
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3 year average cost as follows: Cost per unit: $182,855.31 Cost per square foot: $185.98 Credit per square foot: $17.33 |
Poster - Housing Equals Jobs
Shows the jobs created by a typical Family Tax Credit Development as shown in a National Association of Home Builder's report.
*ALL FUNDS HAVE BEEN ALLOCATED FOR - Tax Credit Assistance Program (TCAP) and Tax Credit Exchange Program (TCEP) *
