IRS Distributes Unused 2022 LIHTC Allocation
The IRS recently published the amounts of unused low-income housing tax credit carryovers for calendar year 2022. The carryover allocation is made up of LIHTCs that are not allocated by states but are added to a national pool and redistributed to qualified states that apply for the additional credits. Revenue Procedure 2022-37 details how $5.4 million of unused LIHTCs were divided among the eligible states in the national pool.
This year’s unused LIHTC allocation is less than the amount for calendar year 2021. Last year, the IRS allocated nearly $7.8 million. At the time, the large amount was presumed to be due to the COVID-19 pandemic. This year, the IRS will allocate more than $5.4 million of unused LIHTCs to 27 states, with California receiving the largest allocation of $982,548. The following table lists each state that received an allocation of the unused LIHTCs.
2022 National Pool Allocation
Qualified State $ Amt. Allocated
New Mexico 52,983
New York 496,708
North Carolina 264,210
Rhode Island 27,435
South Dakota 22,421
West Virginia 44,647