Bloomberg Tax
Oct. 29, 2020, 12:59 PMUpdated: Oct. 29, 2020, 5:07 PM

IRS Issues Rules for Low-Income Housing Credit Test (2)

Sam McQuillan
Sam McQuillan

The IRS offered examples of rental units that can qualify for the low-income housing tax credit in new proposed rules.

The rules (REG-119890-18; RIN 1545-BO92), released Thursday, fall under Section 42. To qualify as a low-income housing project, a certain percentage of units must be rent-restricted. The IRS in the proposed rules addressed projects that have a mix of low-income and market-rate units.

“In situations where multiple units are over-income at the same time in an average-income project that has a mix of low-income and marketrate units, these regulations provide that a taxpayer need not comply ...