Section 42 Of The Internal Revenue Code Of 1986

The tax credit encourages developers to build affordable housing to meet the needs of the community.

Section 42 of the internal revenue code of 1986. Law the tax reform act of 1986 pub. The tax credit reform act of 1986 created the low income housing tax credit program lihtc. The program regulations are under section 42 of the internal revenue code.

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 applicable percentage of 2 the qualified basis of each qualified low income building. Section 42 b 2 a provides that for a qualified low income building placed in service by the taxpayer after 1987 the term applicable percentage means 1 the 70 percent present value credit under 42 b 2 b i for new buildings which are not federally subsidized and 2 the 30 percent present value credit under 42 b 2 b ii. For purposes of the low income housing credit under 42 of the internal revenue code code how should the income limits in the average income test under 42 g 1 c be computed.

What is section 42. The irc 42 low income housing credit program was enacted by congress as part of the tax reform act of 1986 to encourage new construction and rehabilitation of existing buildings as low income rental housing for households with income at or below specified income levels. Table of contents retrieve by section number.

1954 shall not apply to any change in the terms of such option or the terms of the plan under which granted including. Federal tax law begins with the internal revenue code irc enacted by congress in title 26 of the united states code 26 u s c. Simply search by term or click on the irs code section you wish to read up on.

13 1981 paragraph 1 of section 425 h of the internal revenue code of 1986 formerly i r c. 2085 1986 act created the low income housing credit under 42 of the code. Internal revenue code 42 low income housing credit.

Browse all sections of the internal revenue code irc of 1986. Of section 42 h. 1098 which directed the addition of item for subchapter g to the analysis for chapter 42 without specifying the act to be amended was executed by adding the item to this analysis which is for chapter 42 of the internal revenue code of 1986 to reflect the probable intent of congress.