What is the Low-income housing tax credit?

The Low-income housing tax credit? is a federal incentive that provides investors with dollar-for-dollar tax credits for financing the construction or rehabilitation of affordable rental housing for low-income households. The One Big Beautiful Bill Act permanently enhances LIHTC allocations by 12% starting in 2026 and simplifies bond financing qualification to 50% of development costs, expanding affordable housing investment opportunities. Credits generate over 10 consecutive years at either 9% annually for competitive allocations or 4% for bond-financed projects. Strategic coordination with Depreciation and amortization strategies maximizes total tax benefits for real estate investors.

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Tax loss harvesting

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Employee achievement awards

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Child & dependent tax credits

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Work opportunity tax credit

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Home office

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Travel expenses

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Late S election

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Late C election

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Depreciation

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R&D tax credit

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Clean vehicle

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Residential clean energy

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Augusta rule

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Roth 401k

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Traditional 401k

Traditional 401(k) plans offer pre-tax retirement savings for employees, with companies reducing taxable income via contributions.