Low Income Housing Tax Credit (LIHTC)

Learn about the tax credit for taxpayers who invest in a low income housing project.

Updated: July 31, 2023


The LIHTC is available to:

  • Individual taxpayers
  • Partnerships
  • Corporations.

To qualify, the taxpayers must invest in a qualified low-income housing project located in Massachusetts.

The current yearly cap is $10,000,000. The Executive Office of Housing and Livable Communities (EOHLC) determines which:

  • Low-income housing projects will qualify for the credit
  • Properties may generate a LIHTC for investors.

EOHLC also prepares an annual allocation plan and publishes a Notice of Funding Availability (NOFA) for use by a developer interested in applying for qualification.


Properties must meet the federal law requirements for “qualified low-income housing projects” to be eligible for the credit.

Properties must:

  • Be located in Massachusetts
  • Meet the requirements established by Massachusetts laws
  • Be owned by an owner who enters into a regulatory agreement with EOHLC.

Minimum Excise, Carryover, Transfer and Recapture

The LIHTC may not reduce the corporate excise due below the minimum excise, currently $456.

Any unused credits may be carried forward for next 5 tax years. Alternately, unused credits may be transferred.

If an event or circumstance occurs that results, or would have resulted, in the recapture of any portion of a federal Low Income Housing Credit, then the Massachusetts LIHTC may also be subject to recapture.

Additional information

Help Us Improve Mass.gov  with your feedback

Please do not include personal or contact information.