About Tax Credits

A tax credit differs from an income tax deduction. A tax credit reduces the amount of tax owed while an income tax deduction lowers the amount of income subject to taxation. Therefore, a dollar of tax credit decreases income tax owed by one dollar. The Federal Government and many state governments have created tax credits to incentivize activity that will benefit communities, local economies and investors.

These activities range from rehabilitating depreciable historic buildings to developing low-income communities to create affordable housing. Credits can also encourage environmental improvements and redeveloping contaminated industrial and commercial properties.

These credits can either reduce Federal or state tax liability. Within these categories, Consortium primarily focuses on these specific credits: Federal Historic Rehabilitation Tax Credits, Federal New Market Tax Credits, Federal Low Income Tax Credits, Federal Energy Tax Credits, state historic rehabilitation tax credits, state low income tax credits and Brownfield state tax credits.

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• More on State Tax Credits »