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Top ten tax expenditures for housing in 2011

Posted by: Leslie Black-Plumeau on March 29, 2012 - 10:01am

Of the 10 largest housing expenditures, by dollar cost, the Low-Income Housing Tax Credit is only 3%, according to an analysis reported by Novogradac yesterday.  By contrast, the five largest housing-related tax expenditures combined represent 93% of the ten largest housing-related tax expenditures in FY 2011. 

By providing an incentive for private sector investment, the Low-Income Housing Tax Credit has helped finance more than 2.4 million apartments nationwide for low‐income households since its creation twenty-five years ago.   About 6,500 units of Vermont's affordable rental housing stock has been developed through the housing credit program.   

Top Ten Housing Related Tax Expenditures

FY 2011 ($ millions)

1. Deductibility of mortgage interest on owner-occupied homes


2. Exclusion of net imputed rental income


3. Deductibility of State and local property tax on owner-occupied homes


4. Capital gains exclusion on home sales


5. Exception from passive loss rules for $25,000 of rental loss


6. Credit for low-income housing investments


7. Credit for homebuyer


8. Discharge of mortgage indebtedness


9. Exclusion of interest on owner-occupied mortgage subsidy bonds


10. Exclusion of interest on rental housing bonds


Source:  “Notes from Novogradac”, March 28, 2012.



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