Section 42 Of Internal Revenue Code

Affordable rents are defined and calculated based on median household income figures published annually by the u s.

Section 42 of internal revenue code. It establishes a method for determining the income eligibility. Free access to full text of the internal revenue code including editor s notes and updated continuously from bloomberg tax. Bloomberg tax offers full text of the current internal revenue code free of charge.

This guide is current through the publication date. Department of housing and urban development hud. This document is not an official pronouncement of the law or position of the national register of historic places the service and cannot be used cited or relied upon as such.

252 low income housing tax credit a in general for purposes of section 38 the amount of the low income housing credit determined under this section for any taxable year in the credit period shall be an amount equal to 1. The tax credit encourages developers to build affordable housing to meet the needs of the community. Section 42 of the internal revenue code addresses two issues.

Links to related code sections make it easy to navigate within the irc. Investors receive a reduction in their tax liability in return for providing affordable housing to people with fixed or lower income. The amount of the low income housing credit for any taxable year in the credit period is an amount equal to the applicable percentage of the qualified basis of each qualified low income building as defined in 42 c 2.

The purpose of the program is to provide a tax credit to property owners developers to create affordable rental housing. Irc 42 low income housing credit revision date august 11 2015. The section 42 housing program refers to that section of the internal revenue tax code which provides tax credits to investors who build affordable housing.

The section 42 low income housing tax credit program also called the rental housing tax credit program is a federal program governed by the internal revenue service irs. A in general section 421 a shall apply with respect to the transfer of a share of stock to an individual pursuant to his exercise of an incentive stock option if 1 no disposition of such share is made by him within 2 years from the date of the granting of the option nor within 1 year after the transfer of such share to him and 2. Irc section 42 low income housing credit.