Reference
Statutes & Regulations
IRC Section 42, Treasury regulations, IRS rulings, and agency guidance governing the Low-Income Housing Tax Credit program.
- IRC §42 IRC §42 establishes the Low-Income Housing Tax Credit (LIHTC) program, which provides federal tax credits to incentivize the development and preservation of affordable rental housing for low-income households. It sets forth the rules for credit allocation, tenant eligibility, rent restrictions, and compliance requirements that property owners must follow to claim the credit over a 10-year period. →
- Treasury Regulations § 1.42 Treasury Regulations §1.42 provides the detailed implementing guidance and interpretive rules for IRC §42, clarifying how the LIHTC program's requirements are applied in practice. It addresses specifics such as income determination methodologies, utility allowance calculations, eligible basis rules, qualified allocation plan requirements, and compliance monitoring procedures that state housing finance agencies and property owners must follow. →
- Treasury Decisions Treasury Decisions (TDs) are official documents published in the Federal Register that promulgate new or amended Treasury Regulations, including those under §1.42. They serve as the formal mechanism by which the IRS and Treasury Department adopt final, temporary, or proposed regulations, typically including a preamble that explains the regulatory intent, responds to public comments, and provides the legal rationale behind the rules governing LIHTC and other tax provisions. →