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IRS PROPOSES CHANGES TO UTILITY ALLOWANCE RULES

Monday, August 6, 2012 - 7:00AM

The Internal Revenue Service (IRS) today released for public inspection a notice containing proposed updates to low-income housing tax credit (LIHTC) utility allowance regulations. The proposed regulations clarify that utility costs paid by a tenant based on actual consumption in a submetered rent-restricted unit are treated as paid by the tenant directly to the utility company. Use of a ratio utility billing system (RUBS) would still be disallowed. The notice also outlines topics to be discussed at a November 27 public hearing on the proposed regulations. The official notice is scheduled to be published in the August 7 Federal Register. Click here for more information on utility allowances.

Find out what this proposed rulemaking and other regulatory changes could mean for your LIHTC development at the 19th Annual Affordable Housing Conference on September 20-21 in San Francisco, Calif.

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