Housing Tax Credit (LIHTC)

The Housing Tax Credit Program (LIHTC) is designed to provide for-profit and nonprofit developers with an incentive to create and maintain affordable housing. This is the country’s most extensive affordable housing program. Developments that may qualify for credits include new construction, acquisition with rehabilitation, rehabilitation and adaptive reuse. Owners of and investors in qualifying developments can use the credit as a dollar-for-dollar reduction of federal income tax liability. Allocations of credits are used to leverage public, private and other funds in order to keep rents to tenants affordable.

On May 19, 2023, Governor McMaster signed a Joint Resolution (S. 739/R. 76) related to Federal Low Income Housing Tax Credits and State Tax Credits. Pursuant to the Joint Resolution, SC Housing is developing a plan to allocate remaining state tax credits and fifty percent of 9% federal tax credits for certain existing developments meeting the criteria as set forth in the resolution. An update will be provided regarding the allocation plan once SC Housing submits the plan to JBRC by June 30 and receives approval.  Given the delay of a final 2023 QAP and the allocations set forth in the Joint Resolution, SC Housing will not have a 9% application round for 2023. More information will be discussed regarding a 2024 application timeline (LIHTC & TEB) at the roundtable on June 27th. SC Housing will make every effort to hold an earlier round in 2024.

Click here for more information on attending the 2024 Housing Tax Credit Roundtable Workshop.

Please email questions regarding the Housing Tax Credit Program (LIHTC) to taxcreditquestions@schousing.com.