### Question
What does qualified low-income housing project mean?


### Answer
**Qualified low-income housing project** has the following meaning in *26 U.S.C. § 42*:

> any project for residential rental property if the project meets the requirements of subparagraph (A) or (B) whichever is elected by the taxpayer:


#### (A) 20–50 test


The project meets the requirements of this subparagraph if 20 percent or more of the residential units in such project are both rent-restricted and occupied by individuals whose income is 50 percent or less of area median gross income

#### Citation:
  - *26 U.S.C. § 42*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart D-Business Related Credits**

