Affordable Housing Tax Credit Program Compliance Manual

In 1986, Congress enacted the Affordable Housing Tax Credit, authorized and governed by section 252 of the Tax Reform Act of 1986 and section 42 of the Internal Revenue Code. The credit is a dollar-for-dollar reduction in tax liability to investors in exchange for equity participation in the construction, acquisition, and/or rehabilitation of low-income rental housing. The amount of credit allocated is directly based on the number of qualified low-income units that meet federal rent and income targeting requirements.

Under the provisions of the Code, the Wisconsin Housing and Economic Development Authority (WHEDA) was appointed by the Governor as the housing credit agency for the State of Wisconsin to allocate the tax credit (the “credit”) within the State.

Also Read: Housing Toolbox Polk County, Wisconsin