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December 1, 2021

IRS publishes guidance on low-income housing credit

The IRS has issued two pieces of guidance on the low-income housing credit. Revenue Ruling 2021-20 addresses whether the 4% applicable percentage (4% floor) under IRC Section 42(b)(3) applies to certain low-income buildings. Revenue Procedure 2021-43 provides safe harbors for when an obligation described in IRC Section 42(h)(4)(A) (credit for exempt-bond financed buildings) or a low-income housing credit allocation is more than de minimis for purposes of Revenue Ruling 2021-20.

A Tax Alert is forthcoming.