IN MARICOPA COUNTY AND IN ARIZONA?

Low Income Housing Tax Credits

New Market Tax Credits

Historic Tax Credits

• Low Income Housing Tax Credits (LIHTC) reduce tax liability dollar-for-dollar • A property must meet specific criteria to qualify including having a certain percentage of

rental units set aside for individuals below a set income level. • Individual states can determine the specific criteria for awarding tax credits to developers.

1. http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/affordablehousing/training/web/lihtc/basics

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New Market Tax Credits were “established by Congress in 2000 to spur new or increasedinvestments into operating businesses and real estate projects located in low-incomecommunities. ”

Investors receive a tax credit if they make investments in Community Development Entities.

Credits can be valued at up to 39 percent of the original amount invested and may be claimed over a seven year period of time.

The purpose is to attract investors to put money into projects in low income communities.

1. http://www.cdfifund.gov/what_we_do/programs_id.asp?programID=5

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Historic tax credits are available through The Federal Historic Preservation Tax Incentives program. The goal of the program is to encourage “private sector investment in the rehabilitation and re-use of historic buildings .

A 20 percent tax credit is available to rehabilitate structures designated by the Secretary of Interior to be “certified historic structures.”

A 10 percent tax credit is available to rehabilitate non-historic buildings that were placed into service prior to 1936. The rehabilitated building must not be used for a private residential use and certain criteria must be met.

1.http://www.nps.gov/tps/tax-incentives.htm