Population Growth, Inflation Adjustments Add Up to More than $20 Million in Additional LIHTC Authority

Published by ACTION Campaign, Michael Novogradac on Tuesday, February 25, 2014 - 12:00am

In Notice 2014-12, the Internal Revenue Service (IRS) released the 2014 calendar year resident population figures, which show that the nation’s total population grew by 1 percent. As set in Revenue Procedure 2013-35, each state’s LIHTC ceiling in 2014 is equal to the greater of $2.30 multiplied by the state population or $2.635 million; a state’s tax-exempt bond volume cap will be the greater of $100 multiplied by the state population or $296,825,000.

Using these population figures to determine states’ 2014 low-income housing tax credit (LIHTC) ceilings and tax-exempt private activity bond caps reveals interesting insights.

  1. Total per capita LIHTCs increased. The nation’s 1 percent population growth, in addition to the inflations adjustments provided under Rev. Proc. 2013-35, means an increase in LIHTC authority. The new national total amount of LIHTCs available, including the small state minimums, is $753,217,430 for 2014, up $20,901,230 from 2013’s total of $732,316,200. This is a 2.85 percent increase in LIHTC allocation authority.
    Blog Graph New Capita Credits Available Each Year

     

  2. Total tax –exempt bond caps increased. The new national total of available tax-exempt bond authority, including the small state minimums, is $36,080,996,500 for 2014, up $1,743,244,075 from 2013’s total of $34,337,752,425. This is a 5.08 percent increase.
  3. Mississippi is no longer a small state for purposes of calculating tax-exempt bond cap. The sum of multiplying Mississippi’s population by $100 exceeded $2.635 million this year, pushing the total past the small state minimum marker for the first time since 2011.
  4. Texas experienced the largest absolute increase in population. Texas’ population increased by 388,990 residents. The state’s population grew from 26,059,203 to 26,448,193 residents.
  5. Colorado experienced the largest relative increase in population. Colorado’s population increased by 1.6 percent. The state’s population increased from 5,187,582 to 5,268,367 residents.
  6. To learn more about the state of the LIHTC market and what these changes mean for your business, join us at the Novogradac Affordable Housing Tax Credit Conference in New Orleans on May 15-14.