Illinois Legislation Would Create State LIHTC with $35 Million Annual Cap

Wednesday, February 8, 2023 - 1:45PM

A bill in the Illinois House of Representatives would create a state low-income housing tax credit (LIHTC) with an annual cap of $35 million. H.B. 2044 would create the credit for taxable years beginning on or after Jan. 1, 2024. Of the cap, 75.5% would be allocated by the Illinois Housing Development Authority and 24.5% would be allocated by the City of Chicago Department of Housing. All state LIHTCs would go to properties where it was determined that the state credit is necessary for the financial feasibility of the development. The amount of the state credit allocation would be the decision of the allocating authority. Illinois currently has a state affordable housing credit that is a one-time credit for an affordable housing donation.

The use of state LIHTC equity in affordable housing is a topic at the Novogradac 2023 Affordable Housing Conference, April 27-28 in San Francisco.

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