IRS Publishes Population Figures Used to Calculate 2023 LIHTCs

The IRS recently published Notice 2023-22 with the population figures used to calculate the calendar year 2023 LIHTC and private activity bond limits for all 50 states; Washington D.C.; and U.S. territories. According to the data, the population figures increased 0.4 percent from 2022 to 2023. However, the 2023 national 9 percent LIHTC allocation increased 6.2 percent from 2022.

The jump in allocation amount is due to the increase in per-capita multipliers. IRS Revenue Procedure 2022-38, released in October, set each state’s ceiling for 9 percent LIHTCs as the greater of $2.75 multiplied by the state population or $3,185,000. The 9 percent LIHTC per-capita multiplier increase of 15 cents per capita from $2.60 to $2.75 from 2022 to 2023 is the largest increase without a legislative cause since the LIHTC began being adjusted for inflation in 2003.

As a result, Alaska, Delaware, Montana, North Dakota, Rhode Island, South Dakota, Vermont, Wyoming, the District of Columbia, and the territories will all receive $3,185,000 in 9 percent LIHTC allocation, while other states will receive $2.75 multiplied by their population.