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People also ask
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What is the IRS section 42 low-income housing tax credit?
Section 42(a) provides for a credit for investment in certain low-income housing buildings. The amount of the low-income housing credit for any taxable year in the credit period is an amount equal to the applicable percentage of the qualified basis of each qualified low-income building (as defined in § 42(c)(2)).
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What is tenant income certification?
Tenant Income Certification (TIC) is a critical process in affordable housing programs, ensuring that the tenants who benefit from these programs meet the specific income requirements set forth by the governing authorities.
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What is the low-income housing tax credit for dummies?
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.
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Who receives a tax incentive for the Low-Income Housing Tax Credit Program?
Developers can receive substantial tax credits for building, buying, or renovating properties intended for tenants who earn less than their area's median income. Prospective tenants seeking low-income housing must locate a property that qualifies for the tax credit and meet certain income requirements.
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