Gov. Tom Wolf recently signed into law the Pennsylvania Housing Tax Credit Act that creates a low-income housing tax credit (LIHTC) program.
The law directs the Pennsylvania Housing Finance Agency (PHFA) to create guidelines and procedures for administering a state tax credit to qualified, affordable housing projects.
The state’s credit was modeled after the federal LIHTC program.
“We want to thank all the housing advocates and affordable housing groups who came together in support for this important legislation,” Robin Wiessmann, PHFA executive director and CEO, said. “Federal tax credits have proven their worth for more than three decades by financing the construction of tens of thousands of affordable rental units here in Pennsylvania. Our thanks go out to state legislators and the governor for creating a similar program on the state level that will help us fulfill our ongoing housing mission.”
The credit was necessary to provide affordable housing in the state, he said.
“Whenever we allocate federal tax credits, the demand always far exceeds the supply of tax credits we have available,” Wiessmann said. “At a time when a growing number of Pennsylvanians have to spend too much for stable housing, these state tax credits will be greatly appreciated.”