Which legislation includes provisions for the Low-Income Housing Tax Credit?

Prepare for the Tax Credit Specialist Exam with detailed flashcards and multiple choice questions complete with hints and explanations. Ace your exam successfully!

The correct choice is B, as the Housing and Economic Recovery Act of 2008 (HERA) includes significant provisions for the Low-Income Housing Tax Credit (LIHTC). This legislation was designed to stimulate the economy and improve access to affordable housing during a time of economic downturn.

HERA expanded the existing LIHTC program, allowing for increased allocations of tax credits to encourage the development and rehabilitation of low-income rental housing. It aimed to address the urgent needs in affordable housing, particularly as the real estate market faced challenges. The emphasis on the LIHTC within HERA highlights the government's commitment to addressing housing shortages through financial incentives for developers and investors.

In contrast, while the Affordable Housing Act, Community Development Act, and Tax Cuts and Jobs Act may deal with housing and economic matters, they do not specifically focus on the Low-Income Housing Tax Credit provisions in the way that HERA does. Therefore, recognizing HERA as the key legislation related to the LIHTC helps in understanding the framework of affordable housing finance in the U.S.

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