Notice 2024-25

Notice 2024-25

This notice advises State and local housing credit agencies that allocate low-income housing 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 2024 calendar year population-based component of the State housing credit ceiling (Credit Ceiling) under § 42(h)(3)(C)(ii); (2) the 2024 calendar year volume cap (Volume Cap) under § 146; and (3) the 2024 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 2024 calendar year is in Rev. Proc. 2023-34; 2023-48 I.R.B. 1287. Section 3.09 of Rev. Proc. 2023-34 provides that, for calendar year 2024, the amount for calculating the Credit Ceiling under § 42(h)(3)(C)(ii) is the greater of $2.90 multiplied by the State population, or $3,360,000. Further, section 3.20 of Rev. Proc. 2023-34 provides that the amount for calculating the Volume Cap under § 146(d)(1) for calendar year 2024 is the greater of $125 multiplied by the State population, or $378,230,000.

For the 50 states, the District of Columbia, and Puerto Rico, the population figures for calculating the Credit Ceiling, the Volume Cap, and the Volume Limit for the 2024 calendar year are the resident population estimates released electronically by the U.S. Census Bureau on December 19, 2023, and described in Press Release CB23-217. For American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands, the population figures for the 2024 calendar year are the 2023 midyear population figures in the U.S. Census Bureau’s International Data Base.

For convenience, these figures are reprinted below.

The principal authors of this notice are Waheed M. Olayan, Office of the Associate Chief Counsel (Passthroughs and Special Industries), and David White, Office of the Associate Chief Counsel (Financial Institutions and Products). For further information regarding this notice, please contact Waheed M. Olayan at (202) 317-4137 (not a toll-free number).