Tax Incentives for Affordable Housing:

Chapter pages in book: (181 ‐ 205) ture from the structure of previous supply‐side housing programs,which have generally relied on direct provision or subsidization of low‐income housing. In addition to being a critical federal housing program, the LIHTC is of interest as an example of a novel type of tax expenditure pro-in exchange for equity financing. Credits are subsequently claimed by investors on their tax returns. As a consequence, the tax beneficiary is an investor rather than the provider or the targeted beneficiary of the subsidized service. We refer to this class of credits as “investable tax credits.”gram that is spreading to other policy domains. Under the LIHTC pro-gram, the government allocates tax credits to developers of low‐income housing, who then sell the credits, often via intermediaries, to investors