IRS Publishes 2018 Housing Credit and Bond Caps, Unused Credits Announcement

The IRS recently published Revenue Procedure 2017-58. It announced the 2018 inflation-adjusted amounts for the low-income housing tax credit and private activity bond caps. The state LIHTC ceiling in 2018 will be the greater of $2.40 multiplied by the state population or $2,765,000, which is an increase of $55,000 over this year’s cap. The multiplier had been $2.35 in 2017. The state ceiling for the private activity bond volume cap will be the greater of $105 times the state population or $311,375,000. With regard to the current year’s pool of LIHTCs, the IRS in Revenue Procedure 2017-54 also announced that 32 states have $2.75 million of additional LIHTCs to allocate in 2017. These additional LIHTCs are the result of unused credits from 2016 being placed in the national pool and reallocated in 2017 to other states.

The amounts of national pool LIHTCs reallocated to states range from a low of $6,789 for Vermont to a high of $426,613 for California. The five states to receive the most unused LIHTC allocation from the national pool in 2017 were California ($426,613), Texas ($302,842), Florida ($224,039), New York ($214,614), and Illinois ($139,141).