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Binding Commitment Doesn't Allocate LIHTC, IRS Says in Information Letter

Wednesday, January 9, 2002 - 1:45AM

A binding commitment, such as a carryover resolution, does not allocate § 42 credit and therefore it should not be treated as an allocation, according to Internal Revenue Service (IRS) Information Letter 2001-0292. This means a state’s housing credit ceiling is reduced only in the year the credit is allocated - not in the year in which the carryover resolution was made. Accordingly, credit agencies completing Form 8610 should not treat carryover resolutions as allocations; only actual LIHC allocations should be listed. For more information, click here.

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