Affordable Housing Credit Carryback Act

This legislation, titled the Affordable Housing Credit Carryback Act , seeks to modify the Internal Revenue Code of 1986 to provide greater financial flexibility for the low-income housing tax credit (LIHTC). Its primary purpose is to allow developers and investors utilizing the LIHTC to carry back unused credits for a period of five years. Specifically, the bill amends Section 39(a)(3) of the Internal Revenue Code, extending the 5-year carryback provision, previously available for the marginal oil and gas well production credit, to also include the low-income housing tax credit. This change means that if a taxpayer cannot use all of their LIHTC in the current year, they can apply the excess credit to reduce tax liabilities from the five preceding taxable years. The amendments made by this Act will be effective for taxable years beginning after its date of enactment.