Low-Income Housing Tax Credit:

Facts & Figures

Applicable Federal Rates

February
Period for Compounding Annual Semiannual Quarterly Monthly
Short-term (<3 yrs) .81% .81% .81% .81%
Mid-term (>3 yrs <9 yrs) 1.82% 1.81% 1.81% 1.80%
Long-term (>9 yrs) 2.62% 2.60% 2.59% 2.59%

Tax Credit Percentages

  30% 70%

February
Rev. Rul. 2016-4

3.22%

7.51%

*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 – Dec. 2015
(click to enlarge)