Bill Would Provide Tax Credit for Supportive Services at LIHTC Sites

Within the Moving Forward Act, the recent infrastructure bill passed in the House of Representatives, is legislation that would provide a tax credit for supportive services in LIHTC buildings. The Opportunity Starts at Home Act would provide permanent, supportive services for people at risk of experiencing homelessness. 

The act would establish a new tax credit that supports affordable housing financed by the LIHTC in providing services to help vulnerable individuals and those with serious and long-term disabilities such as mental illness, developmental disabilities, physical disabilities, substance abuse disorders, and chronic health conditions, access and maintain stable housing. Specifically, it would provide a 25 percent credit for qualified supportive housing contributions. For purposes of this credit, supportive services are defined as services provided to low-income tenants, including health services, coordination of benefits, job search assistance and training, financial counseling, resident engagement services, or services the principal purpose of which is to help tenants retain permanent housing.

The limit on contributions claimed would be $120,000 multiplied by the number of occupied low-income units in the building at the close of the applicable tax year.