Tax Credits

The U.S. Federal Government’s Low-Income Housing Tax Credit (LIHTC) program is a simple yet powerful incentive for the private sector to invest in replenishing America’s vital supply of affordable housing. Launched in 1986 and made permanent in 1993, LIHTC enables corporations investing in the affordable housing industry to significantly reduce their tax burden. Corporations investing in the construction of new affordable housing units, or in the acquisition and rehabilitation of existing units, can earn tax credits against federal and state income tax. When combined with the added deductions accruing from ownership of real estate, affordable housing tax credits enable a corporation to achieve returns well in excess those available from alternative investments.

Rather than making large up-front payments, corporations investing in affordable housing can finance these transactions. By timing payments to coincide with anticipated tax benefits, corporations working with NDH Capital financing realize all the benefits of the LIHTC program without ever being “out of pocket.” NDH Capital is a leader in financing corporate investor notes for the affordable housing industry. To date, NDH Capital has helped corporations secure in excess of $2.8 billion in LIHTC financing. Clients include Fortune 500 and other investment-graded-rated corporations, affordable housing tax-credit syndicators, and regional and local real estate developers.

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