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LIHTC Per-Capita Multiplier Remains Same for 2021; PAB Multiplier Increases

Monday, October 26, 2020 - 2:15PM

The per-capita multiplier to set a state’s 9 percent low-income housing tax credit (LIHTC) cap for 2021 will remain the same as 2020, while the private activity bond (PAB) multiplier will increase by $5 per capita, according to Revenue Procedure 2020-45, published today by the Internal Revenue Service. Rev. Proc. 2020-45 set the formula to calculate the state 9 percent LIHTC ceiling at the greater of $2.8125 multiplied by the state population or $3,245,625. While the multiplier is the same as 2020, the small-state minimum is an increase of $28,125. Rev. Proc. 2020-45 also set the state PAB cap at the greater of $110 multiplied by the state population or $324,995,000, which are both increases from the $105 multiplier and $321,775,000 small-state minimum for 2020.

Applying for LIHTCs and the crunch for PABs will be among the topics discussed at the Novogradac 2020 Tax Credit Housing Finance Virtual Conference, Dec. 3-4.

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