Who administers the Low Income Housing Tax Credit program?

The Low Income Housing Tax Credit (LIHTC) program is jointly administered by the Internal Revenue Service (IRS) and state housing finance agencies. This structure is designed to ensure both federal oversight and localized implementation of the program.

The IRS establishes the overarching rules and regulations for the LIHTC program, providing the necessary framework for the system. Meanwhile, state housing finance agencies are responsible for allocating tax credits to developers based on a competitive application process. They evaluate projects for their adherence to both federal requirements and state-specific priorities, which can include factors like community needs and economic development goals.

This collaborative approach ensures that the program can effectively target the needs of low-income individuals and families while being flexible enough to accommodate regional differences in housing markets and local policy goals.