NAHMA LIHTC Update: Low-Income Housing Tax Credit Rates for January, 2017

The Internal Revenue Service (IRS) issued Revenue Ruling 2017-02, which provides various prescribed rates for federal income tax purposes, including applicable federal rates (AFR), adjusted AFR, and adjusted long-term and tax-exempt rates for January 2017.

As provided in the ruling, Table 4 contains LIHTC Appropriate Percentages Under Section 42(b)(1) for January 2017, which includes:

  • Appropriate percentage for the 70% present value low-income housing credit: 7.54%

  • Appropriate percentage for the 30% present value low-income housing credit: 3.23%

 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.