This document comprises testimony delivered before the House Subcommittee on Select Revenue Measures on the Low-Income Housing Tax Credit created by the Tax Reform Act of 1986, and on the role of tax policy in preserving the stock of low-income housing. The effectiveness of the low-income credit program is discussed and strategies to improve it are explored. It was proposed to help offset the significant reduction of Department of Housing and Urban Development subsidies from $26 billion in 1981 to $7.4 billion in 1987. H.R. 3663, a bill proposed to provide incentives to prevent the loss of low-income housing, is also discussed. Material submitted for the record and the prepared statements of the witnesses are included. (BJV)