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IRS Expands Housing Tax Credits After California Wildfires

Sept. 17, 2019, 8:17 PM

The IRS is expanding low-income housing credit for disaster relief to California individuals affected by destructive wildfires last year in Butte, Los Angeles, and Ventura counties.

The IRS released a notice Sept. 17 which allows the state committee that administers federal and state low-income housing tax credits to extend the date of its compliance review of credits in the three counties to either Nov. 25, or one year after the date of a building’s restoration and placement back into service.

  • The notice does not indicate either the expansion cost or how many individuals could qualify for relief. The 2018 California wildfire season was the deadliest and most destructive to ever hit the state, according to the California Department of Forestry and Fire Protection. As of May 2019, insurance claims related to the fires had reached $12 billion.
  • Michael Torruella, the principal author of the notice, did not immediately respond for comment.

To contact the reporter on this story: Ryan Prete in Washington at rprete@bloombergtax.com

To contact the editors responsible for this story: Jeff Harrington at jharrington@bloombergtax.com; Kevin A. Bell at kbell@bloombergtax.com