LIHTC Investment

Individual investors are limited in their use of the tax credit. Consequently, most tax credits are purchased by corporations to offset their tax liability (subject to limitations). The credit has given corporate America a powerful incentive to invest in, preserve and maintain the nation's affordable housing stock.

By investing dollars in Section 42 housing that otherwise would go towards paying taxes, corporations can increase earnings and cash flow at no net cost. Furthermore, such investments may offer potential capital appreciation.

Equally important, corporate investors perform a public service and may enhance their image in the community by helping to meet a critical need for affordable housing.