IRS to Publish Final Regulations Concerning Utility Charges Paid to Building Owner
The Internal Revenue Service will publish in Monday’s Federal Register final utility allowance regulations for low-income housing tax credit (LIHTC) properties. The final regulations make permanent the temporary rules under which charges for utilities are treated as paid to the utility company in situations where tenants pay the building owner for utilities based on actual consumption and the building owner pays the utility company. The final regulations extend those principles to renewable energy sources that are not purchased from a utility company. The regulations affect owners, tenants and housing agencies that administer the LIHTC. The final regulations will be effective Monday.