IRS Publishes Unused Housing Credit Carryovers for 2024

The IRS will allocate $3.8 million in unused federal low-income housing tax credits (LIHTCs) as a carryover to 29 states [Revenue Procedure 2024-41]. Last year’s carryover allocation was $11.4 million in two parts. The first was in October 2023 and second one in April 2024.

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. 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. Carryover is often due to states having too little remaining LIHTC allocation authority to issue to an affordable housing site.

For calendar year 2024, the three states with the largest allocations from the national pool are California, Texas, and Florida. The three states with the lowest allocation from the national pool are Vermont, South Dakota, and Alaska.

2024 National Pool Allocation

Qualified State                 $ Amt. Allocated

Alaska                                      10,879

California                                 577,985

Connecticut                             53,655

Delaware                                 15,306

Florida                                     335,393

Georgia                                   163,601

Illinois                                      186,154

Iowa                                        47,571

Kansas                                     43,618

Maryland                                91,674

Massachusetts                        103,854

Michigan                                 148,886

Minnesota                               85,113

Nebraska                                 29,346

New Jersey                              137,815

New Mexico                            31,363

New York                                 290,307

North Carolina                        160,727

Ohio                                        174,825

Oregon                                    62,795

Pennsylvania                           192,266

Rhode Island                           16,257

South Dakota                          13,637

Texas                                       452,467

Utah                                        50,697

Vermont                                  9,604

Virginia                                    129,283

Washington                             115,891

West Virginia                           26,256