The Internal Revenue Service (IRS) on Wednesday issued a revenue ruling and a revenue procedure concerning three 4% low-income housing tax credit (LIHTC) situations. Revenue Ruling 2021-20 holds that buildings are not subject to the minimum 4% floor for draw-down bonds issued prior to 2021, a de minimis Section 42(h)(4)(A) obligation issued after Dec. 31, 2020, or a de minimis allocation of LIHTC funds occurring after Dec. 31, 2020. Revenue Procedure 2021-43 clarifies this ruling.
The Advisory Council on Historic Preservation (ACHP) will host its quarterly business meeting at 1:30 p.m. EDT Dec. 15 via video conference. The provisional agenda includes delivering the ACHP/U.S. Department of Housing and Urban Development (HUD) Secretary’s Award for Excellence in Historic Preservation, an ACHP strategic plan update, an update from the climate change task force, a White House Tribal Nations Summit report and a comment panel on recommendations for Section 106.
Budget legislation signed by Gov. Roy Cooper extended the North Carolina state historic tax credit (HTC) and reinstated and extends the state’s mill rehabilitation credit. The budget legislation extends the sunset date for the state HTC from Jan. 1, 2024, to Jan. 1, 2030. It also adds a 5% bonus for qualified rehabilitation expenditures (QREs) of up to $20 million if the property was originally used for educational purposes. The mill rehabilitation credit is effective for taxable years beginning on or after Jan. 1, 2021, and allows a state credit of 40% for a taxpayer who is allowed a federal HTC on QREs of at least $10 million with respect to the certified rehabilitation of an eligible railroad station.
The California Debt Limit Allocation Committee (CDLAC) today released a memorandum with an application deadline for properties in difficult development areas (DDAs) and qualified census tracts (QCTs) that expire in 2021. New DDAs and QCTs will be effective Jan. 1, 2022.
The U.S. House of Representatives today passed the Build Back Better Act, a $1.7 trillion bill that includes an expansion of the low-income housing tax credit (LIHTC), the introduction of the neighborhood homes tax credit (NHTC), an additional tribal allocation of the new markets tax credit (NMTC) and $325 billion in renewable energy tax incentives. H.R. 5376 passed 220-213 and now goes to the Senate. The legislation includes an extension of the 12.5% increase in 9% LIHTC allocations that began in 2018 through 2024, adding a 10% increase, plus an annual inflation adjustment, to that amount. The bill also would reduce the 50% test for affordable rental housing financed with private activity bonds (PABs) to 25% for calendar years 2022-26, establish a 50% basis boost for extremely low-income housing and provides a 30% basis boost for LIHTC properties in tribal areas.
The Internal Revenue Service (IRS) has updated its table that compares the historic tax credit (HTC) to the low-income housing tax credit (LIHTC), including credit computation, basis adjustment, at-risk rules and 18 other areas. The table does not constitute legal authority and may not be relied upon as such.
The first deadlines for the calendar year 2021 (CY 2021) new markets tax credit (NMTC) allocation round are Thursday, Nov. 18, at 11:59 p.m. ET. In order to submit a NMTC allocation application, the applicant must be a certified community development entity (CDE). If not already a certified CDE, the applicant must submit an application for certification as a CDE by the Thursday deadline. If an applicant that is already a certified CDE wishes to change its designated service area for the CY 2021 allocation round, requests to modify CDE certification service areas are also due Thursday.
Maine’s Office of Program Evaluation and Government Accountability (OPEGA) released Nov. 10 an Evaluation of the Maine Historic Rehabilitation Tax Credit, finding the state’s historic tax credit (HTC) compares favorably to best practices advised by the National Trust for Historic Preservation.
The Internal Revenue Service (IRS) published a notice today providing a 1.2049 inflation adjustment factor for Internal Revenue Code (IRC) Section 45Q carbon oxide sequestration credits. The Notice 2021-35 inflation adjustment means the credit for calendar year 2021 is $24.10 per metric ton of qualified carbon oxide under IRC Section 45Q(a)(1) and $12.05 per metric ton of qualified carbon oxide under IRC Section 45Q(a)(2).
The U.S. Department of Housing and Urban Development’s (HUD’s) Office of Multifamily Housing published a mortgagee letter Wednesday moving all of its Multifamily Accelerated Processing (MAP) lenders to an electronic application submission process. FHA Catalyst: Multifamily Applications Module will take effect Dec. 10 for all electronic MAP submissions. Mailed hard copies, USB drives or emailed cloud-storage service links will no longer be accepted or required as of that date.
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