Qualified Census Tract (QCT) — LIHTC Boost
HUD-designated Qualified Census Tracts boost Low-Income Housing Tax Credits (LIHTC) by 30%, making affordable housing development more financially viable in these areas.
Check an Address — Free Snapshot
See whether a specific Chicago address sits inside the area that unlocks Qualified Census Tract (QCT) — LIHTC Boost, alongside every other incentive that touches that parcel.
Developers and investors building or substantially rehabilitating affordable rental housing in QCT-designated census tracts. 50%+ of households must earn below 60% of area median income.
Qualified Census Tract (QCT) — LIHTC Boost is tied to the Qualified Census Tract (HUD) geography — being inside that boundary is the first eligibility gate. A single address can fall inside several overlapping incentive areas at once.
Boundaries are precise and change over time, so exact eligibility always depends on the specific address. The fastest way to know is to run a free snapshot for the parcel you have in mind.
HUD publishes new QCT designations annually each January 1 (latest: 2026 designations effective 1/1/2026, using 2020 census tract boundaries). The current qct.geojson should be refreshed against HUD's 2026 dataset.
Typical range · 130% LIHTC basis boost (30% more credits)
- +130% boost on LIHTC eligible basis (30% more tax credits)
- +Makes affordable housing projects more financially viable
- +Attracts private investment to low-income communities
- +Can combine with other housing incentives
- 1Confirm the project site is in a HUD-designated QCT
- 2Apply for LIHTC allocation through Illinois Housing Development Authority (IHDA)
- 3Submit project plans demonstrating affordable housing compliance
- 4IHDA reviews and awards tax credit allocations
Call IHDA at (312) 836-5200 about QCT LIHTC allocation
- LIHTC application through IHDA
- Architectural plans and construction budget
- Market study and financial pro forma
- Proof of site control in a QCT
- Environmental and zoning compliance documentation
This page is a starting point, not eligibility, legal, or tax advice. Verify current requirements, deadlines, and boundaries with the administering agency before applying or spending money — program rules and funding change over time.
- Phone
- (312) 836-5200
- Web
- Visit site ↗
- Phone
- (800) 955-2232
- Web
- Visit site ↗
Last verified 2026-05-21
Created by the 2017 Tax Cuts and Jobs Act and made permanent by the One Big Beautiful Bill Act (OBBBA, Pub. L. 119-21, July 2025) on a 10-year designation cycle. OZ 2.0 governor nominations underway July 2026; new OZ 2.0 map effective 1/1/2027. Existing OZ 1.0 tracts remain valid through 12/31/2028.
WOTC LAPSE NOTICE: The Work Opportunity Tax Credit (WOTC) expired December 31, 2025. As of July 2026 it is in legislative hiatus — no new credits are available for employees starting work on or after January 1, 2026. WOTC has historically been reauthorized retroactively; employers are advised to CONTINUE pre-screening new hires using IRS Form 8850 to preserve potential retroactive eligibility. Credit value: $2,400–$9,600 per qualifying hire.
The New Markets Tax Credit program was made permanent by OBBBA (July 2025) with $5 billion in annual allocation authority — eliminating the prior reauthorization risk. The 39% federal tax credit on qualified equity investments through certified CDEs continues without sunset. CY 2026 application round not yet open as of July 2026. NMTC flows through Community Development Entities (CDEs), not directly to businesses — projects typically $5M+.
Properties in National Register Historic Districts qualify for a 20% federal tax credit on certified rehabilitation costs, one of the most valuable credits available for historic building projects.