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 Tax Credit Interest Rates

Low-Income Housing Tax Credit Rates (LIHTC)

The Internal Revenue Service each month publishes the credit percentages that apply to low-income housing tax credit buildings that are placed in service that month. There are two separate rates—one for the 70% present value credit (PVC), and one for the 30% present value credit. The maximum 70% rate is available for low-income new construction and substantial rehabilitation expenditures that aren't federally subsidized (e.g. funded with tax-exempt bond proceeds or with below-market federal loans). The maximum 30% rate applies to acquisition expenditures and to federally subsidized low-income new construction or substantial rehabilitation expenditures for low-income buildings.


Month

70% PVC

30% PVC

May 2008 7.80% 3.34%

April 2008

7.84%

3.36%

March 2008

7.84%

3.36%

February 2008 7.92% 3.40%
January 2008 7.93% 3.40%
December 2007 8.03% 3.44%
November 2007 8.08% 3.46%
October 2007 8.07% 3.46%
September 2007 8.15% 3.49%
August 2007 8.21% 3.52%
July 2007 8.18% 3.50%

June 2007

8.11%

3.48%

May 2007 8.11% 3.47%



Applicable Federal Rates (AFRs) May 2008


Each month, the IRS provides various prescribed rates for federal income tax purposes. These rates, known as Applicable Federal Rates, or AFRs, are regularly published as Revenue Rulings.

Short-Term AFRs


Annual

Semiannual

Quarterly

Monthly

AFR

1.64%

1.63%

1.63%

1.62%

110% AFR

1.80%

1.79%

1.79%

1.78%

120% AFR

1.97%

1.96%

1.96%

1.95%

130% AFR

2.13%

2.13%

2.12%

2.11%

Mid-Term AFRs


Annual

Semiannual

Quarterly

Monthly

AFR

2.74%

2.72%

2.71%

2.70%

110% AFR

3.01%

2.99%

2.98%

2.97%

120% AFR

3.29%

3.26%

3.25%

3.24%

130% AFR

3.57%

3.54%

3.52%

3.51%

150% AFR

4.12%

4.08%

4.06%

4.05%

175% AFR

4.82%

4.76%

4.73%

4.71%

Long-Term AFRs


Annual

Semiannual

Quarterly

Monthly

AFR

4.21%

4.17%

4.15%

4.13%

110% AFR

4.64%

4.59%

4.56%

4.55%

120% AFR

5.06%

5.00%

4.97%

4.95%

130% AFR

5.49%

5.42%

5.38%

5.36%


   

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