Treasury announces states' housing credit carryovers

The Treasury Department has released Rev. Proc. 2026-9, which contains the amounts of unused housing credit carryovers allocated to qualified states under Section 42(h)(3)(D) of the Internal Revenue Code for calendar year 2025.

The notice, which will be published in the Internal Revenue Bulletin on Jan. 20, provides guidance to state housing credit agencies of qualified states on the procedure for requesting an allocation of unused housing credit carryovers under Sec. 42(h)(3)(D).

The amount represents the unused housing credit carryovers allocated to qualified states for a calendar year from a national pool of unused credit authority. The carryovers range from $2.4 million in California and $1.9 million in Texas to $44,851 in Alaska and $39,297 in Vermont.

Because of the timing of the publication of the revenue procedure, any amount of unused housing credit carryover that a qualified state fails to allocate before the close of 2025 will not be considered in determining whether that state qualifies for an allocation of unused housing credit carryover for calendar year 2026.