Rates for November 2021; $7.7 Million in Unused Housing Credit Carryovers Allocated to Qualified States

Rates for November 2021; $7.7 Million in Unused Housing Credit Carryovers Allocated to Qualified States

The Internal Revenue Service (IRS) issued Revenue Ruling 2021-21, 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 November 2021.

As provided in the ruling, Table 4 contains LIHTC Appropriate Percentages Under Section 42(b)(1) for November 2021:

  • Appropriate percentage for the 70% present value low-income housing credit: 7.34%
  • 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.

Additionally, the IRS also published Revenue Procedure 2021-44, announcing $7,797,915 of unused low-income housing tax credits allocated from the national pool to 29 qualified states for calendar year 2021. The national pool in 2021 reflects an increase from the $3.1 million in unused low-income housing tax credits in calendar year 2020.

Revenue Procure 2021-44 can be viewed here.