IRS Publishes Notice 2008-106 with respect to Housing Credit Applicable Percentage under Section 3002(A)(1) of the Housing Assistance Tax Act of 2008

Earlier today, the Internal Revenue Service (IRS) issued Notice 2008-106, which clarifies that the 9 percent applicable percentage floor for non-federally subsidized new buildings that are placed in service after July 30, 2008, and before December 31, 2013, enacted pursuant to Section 3002 of the Housing Assistance Tax Act of 2008 (Pub. L. No. 110-289), applies notwithstanding an irrevocable election by the taxpayer under former tax code Section 42(b)(2)(A)(ii) made on or before July 30, 2008.

This is one of the items arising out of the Housing Assistance Tax Act of 2008 for which the Affordable Housing Tax Credit Coalition had previously requested guidance from the IRS.  For a complete list of the requested guidance visit www.taxcreditcoalition.org.

If you have questions concerning Notice 2008-106 please contact Coalition legal counsel Richard S. Goldstein (202-585-8000 or rgoldstein@nixonpeabody.com).