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IRS Publishes Resident Population Figures to Calculate CY 2022 LIHTC, PAB Cap

Monday, March 21, 2022 - 12:15PM

The Internal Revenue Service (IRS) today published Internal Revenue Bulletin No. 2022-12 for calendar year 2022 resident population figures to calculate state allocations of the 9% low-income housing tax credit (LIHTC) and private activity bond (PAB) cap. Notice 2022-12 includes population figures for all 50 states as well as the District of Columbia, Puerto Rico and other U.S. territories. Nationally, 9% population-based LIHTC will decrease by 6.9% ($66.4 million). The change comes as a result of the 12.5% increase in 9% allocations that was enacted in the fiscal year 2018 omnibus spending bill that expired in December 2021 and may be retroactively addressed in reconciliation or tax extender legislation later this year. PAB allocations will increase 5.1% ($2 billion).

Based on the population figures, Alaska, Delaware, Montana, North Dakota, Rhode Island, South Dakota, Vermont, Wyoming, the District of Columbia and all U.S. territories save for Puerto Rico will receive the small-state 9% minimum of $2,975,000. Those locations plus Arkansas, Hawaii, Idaho, Kansas, Maine, Mississippi, Nebraska, New Hampshire, New Mexico and West Virginia will receive the state PAB minimum of $335,115,000. New York, New Jersey, Pennsylvania, Texas and Alabama saw the biggest gains in population; Arizona, California, North Carolina, the District of Columbia and South Carolina saw the biggest declines. The notice also details the PAB volume limit under Section 142(k).

The use of PABs and competition for LIHTCs will be among the topics at the Novogradac 2022 Affordable Housing Conference April 28-29 in San Francisco.

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