IRS Publishes the Unused Housing Credit Carryovers for 2023

The IRS has published the unused low-income housing tax credit (LIHTC) carryovers for calendar year 2023. The IRS has allocated $3.245 million from the national pool to 28 qualified states. (Rev Proc 2023-32, 2023-41 IRB 1064)

For any calendar year, a state’s unused LIHTC carryover is the excess (if any) of:

1. the unused state housing credit ceiling for the prior year (i.e., the unused carryforward component of the state LIHTC ceiling for the calendar year), over
2. the total LIHTC dollar amount allocated to the state for that calendar year.

A state’s unused low-income housing credit carryover for a calendar year is assigned to the IRS for inclusion in a national pool of unused housing credit carryovers (the national pool). State agencies make the assignment using Form 8610, Annual Low-Income Housing Credit Agencies Report.

The IRS then reallocates the amounts assigned to the national pool among qualified states in the succeeding calendar year. Each year the IRS publishes the amount of unused housing credit carryovers allocated to qualified states from the national pool.

For calendar year 2023, the three states with the largest allocations from the national pool are:

• Texas $450,294,
• Florida $333,529, and
• New York $295,030

The three states with the lowest allocation from the national pool are:

• Vermont $9,702,
• South Dakota $13, 641, and
• Delaware $15,269.

Rev Proc 2023-32 is effective for allocations of housing credit dollars attributable to the national pool component of a qualified state’s housing credit ceiling for calendar year 2023.

For more information about determining unused low-income housing tax credit carryovers, see Checkpoint’s Federal Tax Coordinator ¶ L-16007.