The Internal Revenue Service has announced an increase in the low-income housing tax credit (LIHTC) and private-activity bond volume caps for 2023.
The amounts used to calculate the state credit ceiling for 9% LIHTCs will be the greater of $2.75 multiplied by the state population or $3,185,000. That’s a notable increase of 15 cents for the state multiplier. The small state minimum is an increase from $2,975,000.
The bond volume cap will be the greater of $120 multiplied by the state population or $358,845,000 next year, according to IRS Rev. Proc. 2022-38. That’s an increase from the $110 per capita amount and the $335,115,000 small state minimum this year.
In another move, the IRS said it will allocate more than $5.4 million of unused LIHTCs to 27 states. California is set to receive the largest single carryover amount of $982,548 this year.
