The Internal Revenue Service (IRS) issued Revenue Ruling 2021-5, 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 March 2021.
As provided in the ruling, Table 4 contains LIHTC Appropriate Percentages Under Section 42(b)(1) for March 2021:
- Appropriate percentage for the 70% present value low-income housing credit: 7.26%
- Appropriate percentage for the 30% present value low-income housing credit: 3.11%
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 attached revenue ruling from the IRS online, please click here.