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

Alabama                             126,203

California                            982,548

Connecticut                           90,287

Delaware                              25,126

Florida                                 545,418

Georgia                                270,430

Illinois                                  317,304

Indiana                                 170,428

Maine                                      34,362

Massachusetts                       174,903

Michigan                               251,681

Minnesota                          142,918

Missouri                             154,457

Montana                              27,652

Nebraska                             49,172

New Mexico                          52,983

New York                            496,708

North Carolina                     264,210

Ohio                                    294,981

Oregon                                106,327

Pennsylvania                        324,631

Rhode Island                          27,435

South Dakota                         22,421

Vermont                                 16,166

Virginia                                 216,410

Washington                            193,783

West Virginia                            44,647