The Internal Revenue Service released the Low-Income Housing Tax Credit and Private Activity Bond caps for 2016.
For calendar year 2016, the amount used to calculate the state housing credit ceiling for the low-income housing credit is the greater of $2.35 multiplied by the state population, or $2,690,000. This is up from $2.30 and $2,680,000 in 2015.
In 2016, the amounts used to calculate the state ceiling for the volume cap for private activity bonds is the greater of $100 multiplied by the state population, or $302,875,000. The multiplier remains the same as 2015, but the lump sum is up from $301,515,000.
The notice also indicates that rehabilitation expenditures will be treated as a separate new building for CY 2016. Accordingly, the per low-income unit qualified basis amount under is $6,700. In 2015, the amount was $6,600.
