IRS Publishes Population Figures for Calculating 2024 LIHTCs

The IRS recently published Notice 2024-12 with the population figures used to calculate the calendar year 2024 LIHTC and private activity bond limits for all 50 states; Washington D.C.; and U.S. territories.

By statute, a state receives an allocation of LIHTCs on a per-capita basis. In other words, the pool of 9 percent credits in any given year is limited. And for each state, the annual volume cap for 9 percent tax credits is measured as the product of a fixed per-capita rate multiplied by the state’s population. The credits are allocated by state housing credit agencies through a competitive process. Federal law requires each state housing agency to have a qualified allocation plan (QAP), which sets out the state’s priorities and eligibility criteria for awarding 9 percent tax credits as well as state tax-exempt private activity bonds.

Last November, the IRS released Revenue Procedure 2023-34, which provides the 2024 per-capita and small-state minimum levels for the LIHTC and private activity bonds. As a result, for this year, the amount used to calculate the 9 percent LIHTC state ceiling is the greater of $2.90 multiplied by the state population or $3,360,000. On the private activity bond side, the amounts used to calculate the state ceiling is the greater of $125 multiplied by the state population, or $378,230,000.

With the recently published population figures, eight states, the District of Columbia, and the U.S. territories except Puerto Rico will receive the small-state minimum allocation for 9 percent LIHTCs. Alaska, Delaware, Montana, North Dakota, Rhode Island, South Dakota, Vermont, Wyoming, the District of Columbia, and the territories will all receive $3,360,000 in 9 percent LIHTC allocation, while other states will receive $2.90 multiplied by their population. And those states plus Hawaii, Idaho, Kansas, Maine, Mississippi, Nebraska, New Hampshire, New Mexico, and West Virginia will receive the small-state minimum PAB cap of $378,230,000, while the other states will receive $125 multiplied by their population figure.