IRS Publishes 2019 State Housing Credit and Private Activity Bond Cap Amounts

Today, IRS issued Revenue Procedure 2018-57, providing 2019 per-capita and small state minimum volume cap amounts for the Low Income Housing Tax Credit (Housing Credit) and Private Activity Bonds (PABs). The 2019 cost of living increases are based on the Chained Consumer Price Index (chained CPI) rather than the Consumer Price Index for All Urban Consumers (CPI-U), which had been the inflation determinant prior to passage of the 2017 Tax Cuts and Jobs Act. Chained CPI provides a lower increase than CPI-U.

The Housing Credit ceiling for 2019 is the greater of roughly $2.76 (specifically, $2.75625) multiplied by the state population or $3,166,875. This is a $.05 increase over the 2018 per-capita amount and an increase of $61,875 for the state minimum.

The state ceiling for PABs volume will be the greater of $105 multiplied by the state population or $316,745,000. The per-capita figure is unchanged from 2018, but the state minimum is increased by $6.035 million.