Missouri House Budget Committee Votes to Restart State Low-Income Housing Tax Credit Program

The Missouri House Budget Committee met this week and voted to restart the state low-income housing tax credit program (LIHTC) to encourage developers to build affordable housing. The state LIHTC program is modeled after a similar federal program and provides additional state tax incentives for builders. LIHTC properties are required to offer rent to those in need at a fraction of the market rate, based upon income and need; rent cannot exceed 30% of a renter's income.  While state tax revenue has fallen as a result of the global COVID-19 pandemic, the state wouldn't experience the fiscal impact of the LIHTC program for another three years, since it will take that long for developers to actually claim the tax credits.