A. J. Johnson will be conducting a one-hour live webinar on January 6, 2022, on The 4 Percent LIHTC Floor – IRS Revenue Ruling 2021-20. The Webinar will be held from 1:00 PM to 2:00 PM Eastern time.
On December 27, 2020, the FY 2021 Omnibus Spending and COVID-19 Relief Bills became law. One provision of that law was setting the 4% LIHTC at a floor of 4 percent. The provision was effective for acquisition tax credits allocated after December 31, 2020, and for bond-financed properties placed in service and receiving a bond issue after December 31, 2020.
The IRS has now issued Revenue Ruling 2021-20, providing clarity on when taxpayers may claim the fixed four percent credit for acquisition and bond projects. The ruling addresses three separate issues relating to the 4% credit: (1) Does the minimum 4% applicable percentage (4% floor) apply to buildings that are financed in part with a draw-down of tax-exempt bonds that were issued in 2020 but had drawn downs of the proceeds in 2021; (2) Does the minimum 4% applicable percentage (4% floor) apply to buildings that were financed with tax-exempt bonds issued in 2020 but then had a “de minimis” bond issue after 2020; and (3) Does the minimum 4% applicable percentage (4% floor) apply to buildings that received an allocation of credits in 2020 and a “de minimis” additional allocation after 2020?
This one-hour live webinar will provide a detailed overview of the Revenue Ruling, with specific examples relating to each of the three issues. At the end of the webinar, which will have plenty of time for Q&A, participants will have a full understanding of when the 4% credit may (and may not) be claimed.
Those interested in participating in the Webinar may register on the A. J. Johnson Consulting Services website (www.ajjcs.net) under “Training Schedule.”