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.
July 7, 2020 - 6:15am