Eligible Basis

Eligible basis is the portion of a LIHTC property's development costs that qualifies for tax credits, generally excluding land and a few other costs. It's the starting point for calculating how many tax credits a project can receive.

Example

A project with $10,250,000 in total development cost, $1,500,000 of that in land, and $750,000 in syndication and other non-qualifying costs has an eligible basis of $8,000,000.

Formula

Total Development Cost − Land − Non-Qualifying Costs = Eligible Basis

Excel Formula:

• B2 = Total Development Cost
• B3 = Land
• B4 = Non-Qualifying Costs