Low Income Housing Tax Credit (LIHTC)

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


The LIHTC is available to:

  • Individual taxpayers
  • Partnerships and
  • 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 Department of Housing and Community Development (DHCD) determines which:

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

DHCD 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 DHCD.

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

For more information, details on how amounts are calculated, and important definitions please see: