Google has been investing in low-income housing for the massive tax advantages, according to Bloomberg.
Investments in low-income housing are helping Google offset taxes on the company’s profits.
The move works like this: Google invests in a low-income housing project and receives a tax credit on its investment. That tax credit is of greater value than the actual investment. So if Google invests $1 million in such projects, they actually make back more than $1 million in tax credits.
This isn’t a short term investment for Google, as the tax credits make take some 10 years to sort out. But it may be worth it for yields that could be around 10%.