IRS/Tax Issues


IRS Publishes 2023 Population Figures to Calculate LIHTC, PAB

In Notice 2023-22, the Internal Revenue Service (IRS) published the 2023 resident population figures, which are used to calculate the population-based component of LIHTCs and Private Activity Bonds (PABs).


IRS Publishes Initial Guidance on Energy Projects for Low-Income Communities and Energy Project Credits from Inflation Reduction Act

Earlier this week, the Internal Revenue Service (IRS) released Notice 2023-17: Initial Guidance Establishing Program to Allocate Environmental Justice Solar and Wind Capacity Limitation Under Section 48(e) and Notice 2023-18: Initial Guidance Establishing Qualifying Advanced Energy Project Credit Allocation Program Under Section 48C(e).


IRS Sets 2023 PAB, LIHTC Per-Capita Multiplier and Small-State Minimums; Allocates $5.4 Million to Unused Pool

IRS Revenue Procedure 2022-38 sets the per-capita multiplier for nine percent LIHTCs ($2.75) and the small state minimum ($3,185,000), as well as the private bond multiplier ($120) and the small state minimum ($358,845,000).


IRS Extends Placed-in-Service, Other LIHTC Deadlines

The IRS also issued Notice 2022-52, which extends placed-in-service (PIS) deadlines by one year for allocations starting in 2019.


IRS Issues Average Income Test Final Regulations

The Internal Revenue Service (IRS) and the U.S. Department of the Treasury issued new final regulations on the average income test (AIT).


Bipartisan Group of Lawmakers Call for Expedited Final Rule on Income Averaging

Last week, a bipartisan group of lawmakers sent a letter to the Department of Treasury and Internal Revenue Service urging the expedited release of a final rule on income averaging under the LIHTC program.


IRS Seeks Comments on Priority Guidance Plan 

The Internal Revenue Service (IRS) published Notice 2022-21, inviting public comment on recommendations for items that should be included in their 2022-2023 Priority Guidance Plan. 


IRS Permanently Allows Virtual Bond, QAP Hearings

In Revenue Procedure 2022-20, the Internal Revenue Service provides permanent authority to conduct telephonic public hearings for tax-exempt private activity bonds and QAPs.


IRS Publishes 2022 Population Figures

The Internal Revenue Service published Internal Revenue Bulletin No. 2022-12, which contains calendar year 2022 resident population figures to calculate state allocations of the nine percent LIHTC and private activity bond cap.


Treasury IG Report Concludes IRS Oversight of Housing Credit Program Can Be Improved

The Treasury Inspector General for Tax Administration (TIGTA) recently released a report on IRS oversight of the LIHTC program calling for improvements.


IRS Sets Threshold for Four Percent Floor Eligibility

Last week, the Internal Revenue Service published Revenue Ruling 2021-20, which limits the LIHTC buildings that are eligible for the fixed four percent floor.


IRS Publishes 2022 LIHTC, PAB Caps

The Internal Revenue Service released Revenue Procedure 2021-45, which sets state ceilings for nine percent LIHTCs and private activity bonds (PAB).

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