Low Income Housing Tax Credit (LIHTC)

The low-income housing tax credit (LIHTC) is a public-private partnership that serves as a federal incentive for new construction and redevelopment. It is an efficient, market-based housing solution that relies on the private sector to finance, build, and operate affordable housing. 

Under the successful LIHTC program, states can award housing credits based on their affordable housing priorities. They can target credits to certain populations, such as seniors or veterans, or to specific regions most in need of affordable housing.


The Roundtable supports well-designed government programs such as the LIHTC that seek to increase the nation’s stock of affordable, workforce, and market-rate housing. At the same time, The Roundtable opposes well-intentioned but poorly designed rent control regimes that distort markets, depress business investment, and contribute to housing shortages.

Congress should significantly expand the LIHTC along the lines of the Affordable Housing Credit Improvements, which would create and preserve more than two million affordable homes, support three million jobs, and generate $119 billion in sustainable tax revenue.


The Affordable Housing Credit Improvements Act (AHCIA)—introduced in May 2023—aims to expand and improve the application of the LIHTC to increase the supply of affordable housing. President Biden’s budget proposal would also expand the LIHTC.

The LIHTC is one of many federal government housing assistance programs that utilize portable vouchers in the private market, project-based rental assistance that provides subsidized rent in designated, private buildings, and subsidized rent in public housing.

Since its inception in 1986, the LIHTC has financed the development of nearly 3.5 million affordable rental homes that house over eight million low-income households.

For more information and recent updates, reference our resources below.

Affordable Housing
Expanding Housing Supply: Fannie Mae & Freddie Mac
Low Income Housing Tax Credit (LIHTC)
IRS Limitations on Private-Activity Bonds (PABs)
"YES In My Backyard" (YIMBY)
Surplus Federal Real Estate for Affordable Housing