IRS Releases 2020 LIHTC, Private Activity Bond Volume Caps

The IRS recently published Revenue Procedure 2019-44, which provides the per capita and small state minimum levels for the LIHTC and Private Activity Bonds (PABs). These volume cap figures are adjusted annually for inflation. And, for the LIHTC, the volume cap includes the temporary 12.5 percent increase called for when Congress passed the FY2018 omnibus spending bill.

In 2020, the minimum credit amount increases to $3,217,500. States will receive the greater of $2.81 per capita or the minimum credit amount. The caps for the LIHTC are slight increases over the 2019 levels of $2.76 per capita or $3,166,875. The per capita PAB volume cap will be $105 per capita, the same amount as in 2019, but the small state minimum for PAB volume cap will increase to $321,775,000 from $316,745,000, a $5,030,000 increase over this year, according to Revenue Procedure 2019-44.