The Internal Revenue Service (IRS) published Revenue Procedure 2020-42 announcing $3,105,001 of unused low-income housing tax credits (LIHTCs) allocated from the national pool to 33 qualified states for calendar year 2020. Allocations range from $7,450 for Vermont to $471,731 for California, with an average allocation of $94,091. The national pool in 2020 reflects an increase from the $2.7 million in unused LIHTCs in 2019.
National demand for LIHTC remains robust and unused authority should not be confused for a general lack of demand. The LIHTC allocation process sometimes results in small amounts of LIHTCs returned by affordable housing developments or otherwise remaining toward the end of the year that cannot be efficiently placed with new applications before the end of the year.