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LIHTC vs TCAC: What's the Difference?
LIHTC and TCAC are not competing programs — they describe different parts of the same system. LIHTC (the Low-Income Housing Tax Credit) is the federal tax incentive that funds affordable housing. TCAC (the California Tax Credit Allocation Committee) is the state agency that administers and awards those credits in California. In short: LIHTC is the “what,” and TCAC is the “who.”
LIHTC — the program
The Low-Income Housing Tax Credit is a federal program. The IRS sets the rules and distributes credit authority to the states based on population. It is the funding mechanism — the dollars that make affordable rents possible.
TCAC — the administrator
In California, the Tax Credit Allocation Committee decides which projects receive those federal (and additional state) credits. TCAC runs the application rounds, scores proposals, and enforces long-term affordability. It is the decision-maker, not the funding program itself.
How they fit together
- Federal: the IRS authorizes LIHTC and allocates credit authority to states.
- State: TCAC awards those credits to California affordable housing developers.
- Developers: build or rehabilitate the housing and sell the credits to investors.
- Result: rent-restricted homes that stay affordable for at least 30 years.
Frequently asked questions
Are LIHTC and TCAC the same thing?
No. LIHTC is the federal Low-Income Housing Tax Credit program; TCAC is the California Tax Credit Allocation Committee that administers and awards those credits in the state.
Who administers LIHTC in California?
The California Tax Credit Allocation Committee (TCAC), part of the State Treasurer's Office, administers the LIHTC program in California.
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