Investors take note: A bipartisan group of senators has proposed a new tax credit bill, the Neighborhood Homes Investment Act (NHIA), to encourage building or rehabbing approximately 500,000 homes in urban and rural areas across the country.
The tax credit would be for up to 35% of the eligible development costs with the goal of encouraging investments, creating more affordable housing opportunities, and revitalizing neighborhoods.
“The tax credits would be awarded to project sponsors through statewide competitions administered by state housing finance agencies.
Sponsors could include developers, lenders, or local governments, which ‘could use the credits to raise investment capital for their projects, and the investors could claim the credits against their federal income tax when the homes are sold and occupied by moderate- and middle-income homebuyers,’ the coalition says in the release.”
This sounds like a good deal for anyone who rehabs a SFH. I need a little more explanation
of this perk, thanks.