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LIHTC Update: Low-Income Housing Tax Credit Rates for January, 2018

21 December 2017
 December 21, 2017
Category Industry News

The Internal Revenue Service (IRS) recently issued Revenue Ruling 2018-01, which provides various prescribed rates for federal income tax purposes, including applicable federal interest rates, adjusted applicable federal interest rates, and adjusted long-term and tax-exempt rates for January, 2018.

As provided in the ruling, Table 4 contains LIHTC Appropriate Percentages Under Section 42(b)(1) for January, 2018:

  • Appropriate percentage for the 70% present value low-income housing credit: 7.55%
  • Appropriate percentage for the 30% present value low-income housing credit: 3.24%

Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%.

To view the revenue ruling from the IRS, please click here.

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