We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
Keeping each building’s applicable fraction on target is an essential part of a tax credit manager’s job. The applicable fraction is the percentage of a building’s units rented to low-income households. It comes into play when you calculate the building’s qualified basis, which affects whether the owner can claim all its tax credits. The qualified basis is the eligible basis (which rarely changes but can’t go up) times the applicable fraction (which often goes up or down).
