The Internal Revenue Service has announced an increase in the private-activity bond volume cap while the low-income housing tax credit (LIHTC) multiplier will remain the same in 2021.
The amounts used to calculate the state credit ceiling for 9% LIHTCs will be the greater of $2.815 multiplied by the state population or $3,245,625. There is no change to the multiplier, but the small state minimum is an increase of $28,125 from $3,217,500 this year.
For private-activity bonds, the amounts used to calculate the state ceiling next year is the greater of $110 multiplied by the state population or $324,995,000, according to Revenue Procedure 2020-45. That’s an increase from the $105 multiplier and $321,775,000 minimum in 2020.