In Massachusetts, the Executive Office of Housing and Livable Communities (EOHLC) is the allocating agency for tax credits. Under the federal income tax code, investors in low income rental housing are permitted to take a credit against taxes owed the federal government. The tax credit provides a means by which developers may raise capital for the construction or acquisition and substantial rehabilitation of housing for low income persons.
The Low Income Housing Tax Credit (LIHTC) was created by Congress under Section 252 of the Tax Reform Act of 1986 to promote the construction and rehabilitation of housing for low income persons.
