TDHCA Receives Unused Housing Tax Credits from IRS
TDHCA recently learned that Texas and 26 other states will share $6 million in unused housing tax credits returned to the Internal Revenue Service (IRS) and its national pool of credits by other states. Texas' share of these unused tax credits totals $648,316, the second largest allocation of returned credits behind only California.
"We are extremely pleased to learn that Texas will receive these additional housing tax credits," said Edwina Carrington, TDHCA Executive Director. "TDHCA feels that this represents a strong vote of confidence in the Department by the Internal Revenue Service. The IRS only allocates tax credits returned to the national pool of credits if it is certain a state is able to use them in an efficient and effective manner."
TDHCA administers the state's annual allocation of federal housing tax credits through the Department's Housing Tax Credit Program. The IRS annually issues housing tax credits to each state based on population, and TDHCA utilizes them as an incentive to move private capital toward the development of apartment and town home complexes leasing at below market rate rents.
For more information about TDHCA's Housing Tax Credit Program, and how tax credits create affordable rental properties, please visit the Housing Tax Credit area.