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.