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NAHMA Update: IRS Publishes Notice on State Populations Residing in Qualified Disaster Zones

The Internal Revenue Service recently published Notice 2021-45 advising State and local housing credit agencies that allocate low-income housing tax credits of the county and parish-level populations residing in a qualified disaster zone to use in calculating the applicable dollar limitation for 2021 and 2022 (as provided by the Taxpayer Certainty and Disaster Tax Relief Act of 2020).

 IRS Publishes Notice on State Populations Residing in Qualified Disaster Zones

The Internal Revenue Service recently published Notice 2021-45 advising State and local housing credit agencies that allocate low-income housing tax credits of the county and parish-level populations residing in a qualified disaster zone to use in calculating the applicable dollar limitation for 2021 and 2022 (as provided by the Taxpayer Certainty and Disaster Tax Relief Act of 2020). Currently, 11 states and Puerto Rico meet the criteria of the Taxpayer Certainty and Disaster Tax Relief Act and this notice provides information related to the counties and parishes determined to warrant individual or individual and public assistance from the Federal Government under the Stafford Act, which are also listed in the notice and are needed to determine the population of a State residing in a qualified disaster zone. For example, the additional credit authority provided to states is equal to $3.50 multiplied by the population residing in qualified disaster zones and is capped at 65 percent of the state's 2020 credit ceiling. The notice also provides that agencies may allocate the additional disaster credits in 2021 or 2022, or a portion in each of the two years.
 
IRS Notice 2021-45, State Populations Residing in Qualified Disaster Zones, is available here.
 

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