Recent legislation encourages low income developments

Description

Abstract: Both the Tax Cuts and Jobs Act (TCJA) and Congress’s massive new spending package received widespread media coverage, but a couple of provisions that incentivize investments in low income housing have largely gone under the radar. One provision in the tax law offers significant tax breaks for investors looking to defer or abate capital gains taxes, while the spending bill boosts the Low Income Housing Tax Credit (LIHTC). This article describes the new qualified opportunity zones and expansion of the LIHTC.