Increase in Low-Income Housing Tax Credit
Data File:
Date:
July 23, 2008
Who:
IRS
Policy Area:
Sector Policy (Non-Financial)
Economic Target:
Housing
Action Type:
Tax Break
Maximum Amount:
$11.77 billion
Amount Spent:
$7.63 billion
Deficit Impact:
$7.63 billion This measure increased in 2008 and 2009 the per capita amount of the low-income housing tax credit allocable by each state. In addition, the new rule ignored the distinction between new buildings and existing buildings, allowed buidling receiving moderate rehabilitation assistance to dually qualify for the low-income housing credit, and extended the credit to some eligible students.
The measure was passed as part of the Housing and Economic Recovery Act of 2008, along with the first-time homebuyers tax credit, community housing grants, and the HOPE for Homeowners Program.
Notes:
Maximum amount reflects the peak cumulative cost of the provision over the 2008-2018 period. Amount spent and deficit impact reflect CBO's estimated ten-year budget impact of the provision (http://www.cbo.gov/ftpdocs/95xx/doc9597/hr3221.pdf).