Protecting Americans from Tax Hikes 2015 Part 2
I recently wrote an article regarding the bill titled “Protecting Americans from Tax Hikes of 2015.” In that article, I discussed the minimum tax credit rate for projects that receive LIHTC’s. I would like to shed some light regarding another facet of this bill as it pertains to the Basic Allowance for Housing (BAH). Included in the bill was an extension of military housing allowance exclusion for purposes of determining low-income housing eligibility.
A provision in the 2008 Housing Assistance Tax Act that temporarily excluded the military basic housing allowance for determining whether a tenant in certain counties is low-income, was made permanent in this revision. When determining the annual household income for a military professional, you may be able to exclude the BAH.
It is important that you check with your state agency to see which military bases are part of this exclusion. For example, a recent web board posting from Florida Housing Finance Corporation stated that the Basic Allowance for Housing will no longer be included in the determination of annual income for residents who are stationed at MacDill AFB in Tampa and who reside in qualified buildings located in Hillsborough County or the adjacent counties of Hardee, Manatee, Pasco, Pinellas and Polk.
Please note that this exclusion of income does not apply to HUD’s HOME Investment Partnerships program nor to Florida’s State Housing Initiatives Partnership (SHIP) program.