lihtc tax credit

[David -]

When developing a LIHTC tax credit property do investors buying the tax credits expect to buy at a discount? I'm assuming yes, if not I don't see the incentive in investing in tax credit properties.

If so, how much of a discount is typical?

[Brian Burke]

The rate varies with the market and economy. Not sure what the rate is today, but I've heard numbers as high as .94 cents on the dollar when the economy was hot, all the way down to around .82 on the dollar in 2009 when the recession was in full effect. When companies are making big profits any tax savings is sought after so the credits get bid up.