LIHTC Eligible Basis Calculator

LIHTC eligible basis drives federal credit allocation.

Total development cost

Ineligible costs

Low-income unit %

DDA/QCT boost (1=yes)

Credit rate %

10-year credit total

$42,120,000

Qualified basis

$46,800,000

Annual credit

$4,212,000

How the math works

Eligible = total − ineligible. DDA boost ×1.3. Qualified = boosted × low-income %. Credit = qualified × rate × 10.

$40M − $4M = $36M × 1.3 = $46.8M × 100% = $46.8M qualified × 9% × 10 = $42.12M 10-year credit.

How to Use

Enter total development cost.
Enter ineligible costs.
Enter low-income unit %.
Enter DDA boost (30% if in DDA/QCT).
Read qualified basis.

Frequently Asked Questions

What is LIHTC?

Low-Income Housing Tax Credit, federal program since 1986. Provides 10-year stream of federal tax credits to investors financing affordable housing. 9% credit (competitive, ~70% of basis subsidy) or 4% credit (tax-exempt bonds + non-competitive, ~30% subsidy). Largest federal affordable housing program — funds ~90% of new affordable units annually. Requires 15-year compliance period (plus 15-year extended use) at restricted rents.

Eligible vs non-eligible basis?

Eligible: construction costs, soft costs, land (4% LIHTC), developer fee (capped 15% of basis). Ineligible: acquisition (9% LIHTC), lease-up reserves, off-site improvements, commercial portion of mixed-use, solar tax credit basis (avoid double-dipping). Qualified basis = eligible × applicable fraction (low-income units ÷ total).

DDA and QCT boost?

Difficult Development Areas (DDA): high-cost areas designated by HUD. Qualified Census Tracts (QCT): high-poverty areas. Projects in either get 30% basis boost — eligible basis × 130%. Major value driver for sponsors. Check property address against HUD's maps at project conception. State agency may designate additional boost areas.

Credit calculation?

Credit amount = qualified basis × applicable credit percentage. 9% credit: ~9% of basis × 10 years = ~90% of eligible basis (partial present value). 4% credit: ~3.5-4% × 10 years = ~30-40% basis value. Credits sold to investors for $0.85-1.00 per credit dollar. Creates equity for project. Rate varies: 9% credit minimum, 4% credit minimum 4%.