IRS Releases 2016 Inflation Adjustments for Housing Credits and Bonds
Earlier today, the Internal Revenue Service released Revenue Procedure 2015-53, which outlines the inflation adjustments for nearly 50 federal tax provisions, including the amount of Low Income Housing Tax Credit (Housing Credit) authority and Private Activity Bond (PAB) authority each state will receive.
Under the new guidelines, each state will be allocated $2.35 in Housing Credit authority multiplied by its population, or $2.69 million, whichever is greater. This is a slight increase from 2015, when states received $2.30 for every resident, and the minimum was $2.635 million.
With regard to PAB authority, states will receive $100 per resident in 2016, the same amount as in 2015. The minimum allocation for small states will be increased by just over $1 million, from $301,515,000 to $302,875,000.