Emerson Square (Evanston)
Tax credits allow the taxpayer to subtract the amount of the credit from the total tax they owe to a governing body. Unlike tax deductions and tax exemptions that indirectly reduce tax bills by reducing the size of the base from which the tax bill is calculated, a tax credit directly reduces tax bills.
IHDA administers two programs that leverage the benefits of tax credits for the primary purpose of incentivizing developers to build and rehabilitate affordable rental housing.
- Low Income Housing Tax Credit (federal tax credit)
- Illinois Affordable Housing Tax Credit (state tax credit)
Before submitting an application for either credit, your project must be approved through the Preliminary Project Assessment process.