Low-Income Housing Tax Credit:

Facts & Figures

Applicable Federal Rates

June
Period for Compounding Annual Semiannual Quarterly Monthly
Short-term (<3 yrs) .64% .64% .64% .64%
Mid-term (>3 yrs <9 yrs) 1.41% 1.41% 1.41% 1.41%
Long-term (>9 yrs) 2.24% 2.23% 2.22% 2.22%

Tax Credit Percentages

  30% 70%

June
Rev. Rul. 2016-13

3.18%

7.42*%

*Note:

Under Section 42(b)(2), the applicable percentage for LIHTC allocations made before Jan. 1, 2014, shall not be less than 9%. As extended by H.R. 8, the American Taxpayer Relief Act, this fixed rate applies only to allocations, it does not apply to forward commitments. For more information see IRS Notice 2008-106, which provides guidance on applying the 9% floor, the Housing and Economic Recovery Act of 2008, which set the 9% minimum tax credit percentage rate for the 70% credit, or H.R. 8, the American Taxpayer Relief Act of 2012, which amended and extended the provision. The Protecting Americans from Tax Hikes Act of 2015 permanently extended the minimum low-income housing tax credit rate for non-federally subsidized buildings. 

 

LIHTC Pricing Trends

Jan. 2002 – March 2016
(click to enlarge)