In California, the state LIHTC agency is the CTCAC- California Tax Credit Allocation Committee. The CTCAC administers the federal and state Low-Income Housing Tax Credit Programs. In July 2008, the Internal Revenue Service (IRS) released final regulations for changes to utility allowances for Low Income Housing Tax Credit (LIHTC) projects. Both programs were created to promote private investment in affordable renting housing for low income Californians.
Only rental housing projects are eligible for tax credits in both federal and state programs. There are two types of federal credits available, 9% credit or 4% credit. Credits can be allocated for new construction projects or exisiting properties undergoing rehabs.