NAHMA LIHTC Update: Low-Income Housing Tax Credit Rates for January 2021

December 16, 2020

Dear NAHMA Members,

Today, the Internal Revenue Service (IRS) issued Revenue Ruling 2021-1, 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 2021.

As provided in the ruling, Table 4 contains LIHTC Appropriate Percentages Under Section 42(b)(1) for January 2021:

  • Appropriate percentage for the 70% present value low-income housing credit: 7.21%
  • Appropriate percentage for the 30% present value low-income housing credit: 3.09%

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.