Who oversees the regulatory administration of the Low-Income Housing Tax Credit Programs?

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

The Internal Revenue Service (IRS) oversees the regulatory administration of the Low-Income Housing Tax Credit (LIHTC) Programs. The LIHTC is a critical federal program aimed at incentivizing the development and rehabilitation of affordable rental housing for low-income households. The IRS is responsible for providing guidance on the tax benefits associated with the credits, establishing rules for compliance, and ensuring that the program operates within the framework of tax law.

While other organizations play significant roles in the housing sector—such as the Department of Housing and Urban Development, which focuses on broader housing policy and subsidies, and State Housing Finance Agencies that manage the allocation of LIHTCs at the state level—the IRS is unique in its direct oversight regarding compliance and enforcement of the tax regulations associated with LIHTCs. This includes monitoring the issuance, ongoing compliance, and recapture of tax credits when necessary.

The Federal Housing Finance Agency, while influential in regulating government-sponsored enterprises in the housing finance sector, does not oversee the LIHTC program.

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