IRS/Tax Issues

The Internal Revenue Service (IRS) published Notice 2021-45 advising Housing Credit allocating agencies that qualified for disaster credits authority under the Taxpayer Certainty and Disaster Tax Relief Act of 2020 of the population residing in qualified disaster zones.

The Internal Revenue Service (IRS) published an updated frequently asked questions (FAQ) document concerning the Federal Historic Tax Credit (HTC). The questions addressed what types of entities can claim the HTC, how and when the HTC can be claimed on a tax return key program definitions, qualified rehabilitation expenditures, basis and several other key aspects surrounding HTC.

Announcement 2021-10 from the Internal Revenue Service confirms that the boundaries of Designated Qualified Opportunity Zones (OZs)were established at the time they were designated and are not subject to change from the 2020 decennial Census.

On March 15, 2021, the IRS published Notice 2021-19, which advises state a local housing credit agencies and issuers of private activity bonds of the state population figures that are used to calculate the annual state allocation for the 9% LIHTC as well as the state’s private activity bond cap.

The Internal Revenue Service will hold a virtual hearing on its Average Income Test proposed rule on March 24 at noon ET. Register by March 22 by emailing publichearings@irs.gov or contacting Regina Johnson at (202) 317–5177. NH&RA submitted comments and will attend the public hearing.

Internal Revenue Service Notice 2021-12 extends the temporary relief for qualified LIHTC projects. The 10 percent test for carryover allocations and the 24-month minimum rehabilitation expenditure period are extended until September 30. The deadline for income recertifications and compliance monitoring is extended until October 1 and the placed-in-service deadline is extended to December 31.

NH&RA submitted our comments on the Internal Revenue Service (IRS) and the Department of the Treasury’s proposed rule on the average income test.

NH&RA created a customizable template letter for developers to submit comments to the Internal Revenue Service (IRS) and Department of the Treasury (Treasury) on their Average Income Test proposed rule. Comments are due by December 29 and should be submitted here.

NH&RA joined with 139 other organizations to support the National Council of State Housing Agencies’ (NCSHA) letter to the Internal Revenue Service (IRS) and Department of the Treasury calling for an extension to the temporary COVID-related LIHTC relief.

The Affordable Housing Tax Credit Coalition (AHTCC) is circulating a sign-on letter to support the National Council of State Housing Agencies’ (NCSHA) letter to the Internal Revenue Service (IRS) and Department of the Treasury calling for an extension to the temporary COVID-related LIHTC relief. The deadline to sign-on is Friday, November 20. NH&RA joined the […]

In response to the continuing COVID-19 pandemic, the Internal Revenue Service (IRS) published Revenue Procedure 2020-49, which provides temporary guidance on the statutory public approval requirement for tax-exempt qualified private activity bonds. The revenue procedure extends the time period during which telephonic hearings satisfy the public approval requirement from December 31, 2020, until September 30, […]

The Department of the Treasury and the Internal Revenue Service posted a proposed rule on the Average Income minimum set-aside election. The proposed rule would require properties electing the average income minimum set-aside to designate the imputed income limit of each low-income unit no later than the close of the first taxable year of the LIHTC period. To avoid noncompliance and recapture, owners would only be allowed to take mitigating steps with 60 days of year-end.