Illinois Affordable Housing Tax Credits (Donations Tax Credit)
The Illinois Affordable Housing Tax Credit (IAHTC), also known as the Donations Tax Credit, provides a $0.50 state income tax credit for each $1 contributed to a qualified affordable housing project. Donations, which may be cash, securities, or real or personal property, must total at least $10,000 and may be aggregated. Project sponsors must be non-profit organizations with a mission to construct or rehabilitate affordable housing.
Funds must be used for projects that meet the definition of affordable housing. Qualified projects must include units that benefit families who earn up to 60 percent of area median income.
Eligible projects include:
- Affordable rental and homeownership developments
- Employer-assisted housing projects
- Homeownership counseling programs in Chicago
For projects planning to apply for other Department of Housing (DOH) funds, the IAHTC is incorporated into existing applications. A stand-alone application is available but only for projects that do not use other DOH funds. Federal funding applications occasionally require applicants to submit the "Questionnaire for HUD's Initiative on Removal of Regulatory Barriers." The stand-alone application, employer-assisted housing application, and homeownership counseling application may be obtained by calling 311.