IRS Announces Higher LIHTC Ceiling

On Oct. 20, the IRS released the inflation-adjusted low-income housing tax credit and private activity bond caps for 2012. For calendar year 2012, the amount used to calculate a state's LIHTC is the greater of $2.20 per resident or $2,525,000. This represents a 5 cent per-capita increase. This year, the ceiling was fixed at $2.15 multiplied by the state population, or $2,465,000.

Each state's 2012 private activity bond cap will be the greater of $95 per capita or $284,560,000, reflecting no change from the 2011 per-capita amount and an increase from the 2011 minimum of $273,775,000. Although, the per-capita amount is unchanged since last year, the new small state minimum represents an increase of $6.7 million. The 2012 cap increases were announced in Revenue Procedure 2011-52.