### Question
How is the "qualified nonprofit organization" defined?


### Answer
The term **qualified nonprofit organization** is defined in *26 U.S.C. § 42* as follows -

> any organization if—


(i) such organization is described in paragraph (3) or (4) of section 501(c) and is exempt from tax under section 501(a),


(ii) such organization is determined by the State housing credit agency not to be affiliated with or controlled by a for-profit organization; [3](#42_3_target) and


(iii) 1 of the exempt purposes of such organization includes the fostering of low-income housing

#### 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**

