Notice 2021-19

This notice advises State and local housing credit agencies that allocate low-income housing tax credits under § 42 of the Internal Revenue Code, and States and other issuers of tax-exempt private activity bonds under § 141, of the population figures to use in calculating: (1) the 2021 calendar year population-based component of the State housing credit ceiling (Credit Ceiling) under § 42(h)(3)(C)(ii); (2) the 2021 calendar year volume cap (Volume Cap) under § 146; and (3) the 2021 volume limit (Volume Limit) under § 142(k)(5).

Generally, the population-based component of both the Credit Ceiling and the Volume Cap are determined under § 146(j), which requires determining the population figures for any calendar year on the basis of the most recent census estimate of the resident population of a State (or issuing authority) released by the U.S. Census Bureau before the beginning of the calendar year. Similarly, § 142(k)(5) bases the Volume Limit on the State population.

Sections 42(h)(3)(H) and 146(d)(2) require adjusting for inflation the population-based component of the Credit Ceiling and the Volume Cap. The Credit Ceiling adjustment for the 2021 calendar year is in Rev. Proc. 2020-45, 2020-46 I.R.B 1016. Section 3.10 of Rev. Proc. 2020-45 provides that, for calendar year 2021, the amount for calculating the Credit Ceiling under § 42(h)(3)(C)(ii) is the greater of $2.8125 multiplied by the State population, or $3,245,625. Further, section 3.21 of Rev. Proc. 2020-45 provides that the amount for calculating the Volume Cap under § 146(d)(1) for calendar year 2021 is the greater of $110 multiplied by the State population, or $324,995,000.

For the 50 states, and the District of Columbia, the population figures for calculating the Credit Ceiling, the Volume Cap, and the Volume Limit for the 2021 calendar year are the resident population estimates released electronically by the U.S. Census Bureau on December 22, 2020, and described in Press Release CB20-TPS.104. For Puerto Rico the population figure for the 2021 calendar year is the resident population estimate released electronically by the U.S. Census Bureau on December 30, 2019 and described in Press Release CB19-198. For American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands, the population figures for the 2021 calendar year are the 2020 midyear population figures in the U.S. Census Bureau’s International Data Base (IDB). The last announced update of the IDB by the U.S. Census Bureau in 2020 was electronically announced on December 15, 2020, in Press Release CB20-TPS.96.

For convenience, these figures are reprinted below.

The principal authors of this notice are Michael J. Torruella Costa, Office of the Associate Chief Counsel (Passthroughs and Special Industries), and Lewis Bell, Office of the Associate Chief Counsel (Financial Institutions and Products). For further information regarding this notice, please contact Mr. Torruella Costa at (202) 317-4137 (not a toll-free number).