The Internal Revenue Service (IRS) has released it latest LIHC Newsletter, which provides a forum for information about Section 42, the Low-Income Housing Tax Credit (LIHTC), and communicating technical knowledge and skills, guidance, and assistance for developing LIHTC issues. LIHC Newsletter #51 provides guidance on impact fees, or the one-time charges imposed by a state or local government against new development or expansion of existing development to finance specific offsite capital improvements for general public use that are necessitated by the new or expanded development. Generally, impact fees are refundable (in full or in part) if the new or expanded development ultimately is not constructed as planned but this issue goes into further detail about whether impact fees should be included in Eligible Basis calculations.
This issue also provides guidance on the audit significance of credit, compliance & extended use periods and completing Form 8893 as well as summaries of the most recent IRS Administrative Procedures
Click here to read LIHC Newsletter #51.
