The Internal Revenue Service (IRS) published Revenue Ruling 2024-5, which provides guidance on the treatment of returned disaster Housing Credits for the 11 states and Puerto Rico that received disaster credit authority in the Taxpayer Certainty and Disaster Tax Relief Act of 2020. The guidance clarifies that, if a state receives a return of credits after 2022 from an allocation to a development in one of the qualified disaster zones specified in the act, the returned credits will become part of the overall returned credit component of the State’s Housing Credit ceiling in the year of the return, and reallocation of that authority is not restricted to projects located in qualified disaster zones.