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NAHMA LIHTC Update: Low-Income Housing Tax Credit Rates for April 2021 & 2021 Resident Population Figures

Please find two recent IRS updates related to the Low-Income Housing Tax Credit (LIHTC) program.

Low-Income Housing Tax Credit Rates for April 2021 & 2021 Resident Population Figures

Below, please find two recent IRS updates related to the Low-Income Housing Tax Credit (LIHTC) program.

1.       April Revenue Ruling
 
The Internal Revenue Service (IRS) issued Revenue Ruling 2021-07, which provides various prescribed rates for federal income tax purposes, including applicable federal interest rates, adjusted applicable federal interest rates, and adjusted long-term and tax-exempt rates for April 2021.
 
As provided in the ruling, Table 4 contains LIHTC Appropriate Percentages Under Section 42(b)(1) for April 2021:
  • Appropriate percentage for the 70% present value low-income housing credit: 7.33%
  • Appropriate percentage for the 30% present value low-income housing credit: 3.14%
 
Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%.
 
To view the revenue ruling from the IRS online, please click here.
 
 
2.       2021 Calendar Year Resident Population Figures

Recently, the IRS published the 2021 Calendar Year Resident Population Figures, which are used by state and local housing credit agencies that allocate low-income housing tax credits and housing bonds to calculate population-based credit ceilings, volume caps, and volume limits.
For Calendar Year 2021, the amount for calculating the credit ceiling is the greater of $2.8125 multiplied by the State population, or $3,245,625. The amount for calculating the volume cap Calendar Year 2021 is the greater of $110 multiplied by the State population, or $324,995,000.

The Calendar Year 2021 population figures are available online here.

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