The Internal Revenue Service has issued proposed amendments to the utility allowance regulations concerning the low income housing tax credit in Code Section 42.
The proposed regs,
The proposed regulations update the utility allowance regulations to clarify that utility costs paid by a tenant based on actual consumption in a submetered rent-restricted unit are treated as paid by the tenant directly to the utility company.
The regs affect owners of low-income housing projects that claim the credit, the tenants in those low-income housing projects, and the state and local housing credit agencies that administer the credit.
