Of the 10 largest housing expenditures, by dollar cost, the Low-Income Housing Tax Credit is only 3%, according to an analysis reported by Novogradac yesterday. By contrast, the five largest housing-related tax expenditures combined represent 93% of the ten largest housing-related tax expenditures in FY 2011.
By providing an incentive for private sector investment, the Low-Income Housing Tax Credit has helped finance more than 2.4 million apartments nationwide for low‐income households since its creation twenty-five years ago. About 6,500 units of Vermont's affordable rental housing stock has been developed through the housing credit program.
| Top Ten Housing Related Tax Expenditures |
FY 2011 ($ millions) |
| 1. Deductibility of mortgage interest on owner-occupied homes |
$72,240 |
| 2. Exclusion of net imputed rental income |
$46,950 |
| 3. Deductibility of State and local property tax on owner-occupied homes |
$23,210 |
| 4. Capital gains exclusion on home sales |
$15,060 |
| 5. Exception from passive loss rules for $25,000 of rental loss |
$11,080 |
| 6. Credit for low-income housing investments |
$6,150 |
| 7. Credit for homebuyer |
$2,400 |
| 8. Discharge of mortgage indebtedness |
$1,370 |
| 9. Exclusion of interest on owner-occupied mortgage subsidy bonds |
$1,060 |
| 10. Exclusion of interest on rental housing bonds |
$900 |
Source: “Notes from Novogradac”, March 28, 2012.