Housing Credit program

The Housing Credit was designed by Congress to assist in the creation and preservation of affordable rental housing for lower-income households. This program has proven to be a very effective means of raising equity capital for the development of affordable rental housing in Vermont. It provides a direct cost-based reduction in federal tax liability over a 10-year period for owners of qualifying rental housing who agree to conform to certain operating restrictions for at least a 15-year period. The Tax Reform Act of 1986 (and succeeding revisions of that law) set a maximum housing credit allocation for each state based on population.

Vermont's annual allocation is approximately $2.125 million.