In: Finance
Tax credit facilitate one of the ways to subsidise the property rehabilitation as low income housing tax credit are part of affordable housing project. internal revenue code gives state housing finance agency the authority to issue low income housing tax credit to developers for the acquisition rehabilitation or new construction of the rental property for low-income residents and they are used by residents for subsidizing their property rehabilitation as they are offering with lower taxations and these will be helping the individuals in subsidizing their income.
There is a certain qualification criteria and rent of at least 40% of the unit of the tenant should be rented equal to or less than 60% of the median income area or it should be either rented 20% of the unit to the tenant with income equal to or less than 50% of the median income of the area.
Hence, these will be the situations which will offer subsidizing benefits for the rehabilitation purposes as it will be leading to claiming of the low-income housing tax credit.