The Tax Credit Allocation Committee is required set aside 20% of all 9% federal credits for projects in rural areas. In addition, TCAC regulations require all projects in rural areas compete for credits in the rural set-aside, with certain limited exceptions. Thus, all applicants for 9% tax credits must document, to the Committee’s satisfaction, the rural or non-rural status of the project.
TCAC released a memo of February 3, 2016 to explain the methodology for determining the rural status of a project site.
