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Compute the Annual Low-Income Housing Tax Credit and the Total Equity from Tax Credits using the information below. Assume the project is QCT/DDA eligible (10

Compute the Annual Low-Income Housing Tax Credit and the Total Equity from Tax Credits using the information below. Assume the project is QCT/DDA eligible (10 points).

The Total Development Budget: $12,000,000

Costs ineligible for Basis: $2,000,000

Applicable Fraction: 90%

The Applicable Rate: 9%

The Price Paid for the Tax Credits: $1.00

What is the Qualified Basis?

What are the Annual Tax Credits?

What is the Total Equity generated by the Tax Credits?

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