A historic structure is a building officially recognized for its historic significance, thereby receiving a special income tax status. This status encourages restoration and discourages demolition or significant alteration. Qualified rehabilitation expenses for certified historic structures are eligible for a 20% tax credit.
A Mortgage Credit Certificate (MCC) enables a borrower to claim a portion of the mortgage interest paid as a credit against federal income tax, helping first-time home buyers by reducing their overall tax liability.
Subsidized housing refers to apartments, nursing homes, or single-family dwellings that receive a government subsidy to reduce housing costs for low-income individuals and families.
A tax credit is a direct reduction in the amount of tax that a taxpayer owes to the government. Unlike tax deductions, which reduce the amount of taxable income, tax credits reduce the actual tax due, providing dollar-for-dollar savings.
