What's Happening?
The Illinois Affordable Housing Tax Credit, which provides a 50% tax credit on donations to nonprofit housing developers, is set to expire later this year. Advocates are calling on Governor JB Pritzker and the General Assembly to extend and strengthen
the program, which has been instrumental in supporting affordable housing development across the state. The program has leveraged over $510 million in private donations and supported the creation of tens of thousands of affordable homes. With rising construction costs and increasing demand for affordable housing, the program's current growth rate is insufficient to meet the state's needs.
Why It's Important?
The potential expiration of the Illinois Affordable Housing Tax Credit poses a significant risk to the state's efforts to address its affordable housing shortage. The program has been a critical tool in closing financing gaps for housing projects, enabling the development of affordable homes for low-income residents. Without legislative action to extend and expand the program, Illinois could lose a vital resource at a time when affordable housing is more crucial than ever. Strengthening the program could help mitigate the impact of rising construction costs and ensure that more communities benefit from affordable housing initiatives.
