Despite partisan fights continuing to play out over various pieces of the tax code, the Low-Income Housing Tax Credit, or LIHTC, has enjoyed decades of strong bipartisan support. This $8 billion in annual federal funding provides incentives for investors to develop, construct and rehabilitate affordable rental housing. It has helped finance more than 3 million affordable rental units serving about 7 million low-income households since it was created in 1986.
Both the House-passed tax bill and the plan approved by the Senate Finance Committee continue LIHTC. Robust evidence links LIHTC investments to positive economic growth for communities, social and educational benefits for families and reductions in homelessness.