IRS Releases Population Figures for Calculating 2019 LIHTCs, PABs

The IRS recently released 2019 population figures indicating that the 2019 LIHTC ceiling and tax-exempt private activity bond (PAB) cap for all states will increase. From 2018–2019, the U.S. population increased by 1,448,256 people to 327,167,434 in total, representing a 0.4 percent gain. U.S. territories lost more than 140,000 people, a 3.8 percent decrease. The FY 2018 omnibus appropriations bill provided a 12.5 percent increase in LIHTC allocations from 2018–2021. For 2019–2021, annual inflation adjustments would be applied to the new 2018 allocation amounts.

Under Revenue Procedure 2018-57, each state’s 2019 LIHTC ceiling is the greater of $2.75625 multiplied by the state population or $3,166,875. The 2019 PAB volume cap is the greater of $105 multiplied by the state population or $316,745,000. With the increase in per-capita allowances, states that lost population but don’t qualify for the small-state minimum, won’t be seeing a decrease in their LIHTC and PAB cap. In 2018, the state LIHTC cap was the greater of $2.70 per resident or $3,105,000, and state bond caps were the greater of $105 per resident or $310,710,000.

According to IRS Notice 2019-19, Arizona and Idaho experienced the fastest growth. The states grew by more than 2 percent each, with total population changes of 155,376 and 37,265, respectively. States that lost population include: Alaska, Connecticut, Hawaii, Illinois, Kansas, Louisiana, Maryland, New Jersey, New York, Rhode Island, West Virginia, and Wyoming. Territories that lost population are American Samoa, Puerto Rico, and the U.S. Virgin Islands.

New York saw the largest numeric decrease with a 307,190 population decline, representing a nearly 1.6 percent drop. The largest percent decrease is Puerto Rico, with a loss of nearly 4.3 percent of its population or 142,024 residents. The 2019 population figures for American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands are the 2018 midyear population figures in the U.S. Census Bureau’s International Database and therefore don’t reflect the impact of the 2018 hurricane season.

Because their populations are below the small state minimum, these states will receive LIHTC allocations of $3.167 million and not the population-based LIHTC allocation: Alaska, Delaware, the District of Columbia, Montana, North Dakota, Rhode Island, South Dakota, Vermont, and Wyoming. U.S. territories are American Samoa, Guam, Northern Marian Islands, and the U.S. Virgin Islands. This list of small-state recipients remains unchanged from 2016, 2017, and 2018.