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The LIHTC program has helped meet a critical affordable housing shortage by stimulating the production or rehabilitation of nearly 2.4 million affordable homes since 1986.

The amount of the credit will be based on (i) the amount of credits awarded to the project in the competition, (ii) the actual cost of the project, (iii) the tax credit rate announced by the IRS, and (iv) the percentage of the project's units that are rented to low-income tenants.

Failure to comply with the applicable rules, or a sale of the project or an ownership interest before the end of at least a 15-year period, can lead to recapture of credits previously taken, as well as the inability to take future credits. The program's structure as part of the tax code ensures that private investors bear the financial burden if properties are not successful.

Definition: Fixed telephone subscriptions refers to the sum of active number of analogue fixed telephone lines, voice-over-IP (Vo IP) subscriptions, fixed wireless local loop (WLL) subscriptions, ISDN voice-channel equivalents and fixed public payphones.

Source: International Telecommunication Union, World Telecommunication/ICT Development Report and database, and World Bank estimates.

The first step in the process is for a project owner to submit an application to a state authority, which will consider the application competitively.

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