Housing Credit Percentages

Each month, the Internal Revenue Service publishes housing credit percentages that apply to
buildings placed in service each month under the Housing Credit Program.

There are two separate rates:

Maximum 70% present value credit (PVC) rate
For new construction and substantial rehabilitation expenditures that are not federally subsidized.

Maximum 30% present value credit (PVC) rate
For property acquisition expenditures and federally subsidized new construction or substantial
rehabilitation expenditures.

NOTE:  Under Section 42(b)(2), the applicable percentage for non-federally subsidized new buildings
placed in service after July 30, 2008, and before December 31, 2013, shall not be less than 9%.
For more information, see IRS Notice 2008-106, which provides guidance on applying the new 9% floor,
or the Housing and Economic Recovery Act of 2008, which set the 9% minimum tax credit percentage
rate for the 70% credit.