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News & Press: Industry News

New Tax Law Retains Low-Income Housing Incentives

Tuesday, January 16, 2018  
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The tax bill recently signed into law by President Trump has several incentives for low-income housing.

First, the bill keeps intact the Low-Income Housing Tax Credit (LIHTC). This credit allows owners of certain rental property to claim a low-income tax credit over a ten-year period. Second, the new law also retains the new markets tax credit that encourages investment in housing developments in low-income areas. Finally, and perhaps most significant, the law preserves tax-exempt private activity bonds (PABs).

These bonds are a significant source of financing for low-income housing projects. It is estimated that over half of all low-income housing tax credit financed affordable homes benefit from PABS.

California Land Title Association

1215 K Street #1816 Sacramento, CA 95814-3905
Email:  |  Phone: 916-444-2647  |   Fax: 916-444-2851