Present Law And Issues Relating to the Low-Income Housing And Rehabilitation Tax Credits : Scheduled for Hearings Before the Subcommittee On Select Revenue Measures of the House Committee On Ways And Means, On May 23, 1989 And June 6, 1989 Jcs-12-89

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e. Ways to improve utilization Level of subsidy , One way to improve investment in credit projects would be to' crease the level of Federal tax benefits flowing to each proj» Those who favor this approach argue that the benefit of the en and other Federal tax provisions should be used to encourage \ ticipation by private investors in the provision of housing to I income individuals. Others respond that the credit is not intent to provide the sole source of subsidy, but that ways should be de' o
...ped to encourage other entities such as State or local governme to participate.
Allocating agencies Some assert that the allocating agency should take a more act role in promoting use of the credit. This may be accomplisl through some form of subsidy or penalty (or a combination then intended to encourage participation by the allocating ager Others respond that forces beyond the control of the allocat agency may be responsible for low utilization and in which c any subsidies or penalties would have little or even a detrimer effect.


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