The Internal Revenue Service (IRS) released Revenue Procedure 2021-45, which sets state ceilings for nine percent LIHTCs and private activity bonds (PAB). The nine percent LIHTC cap is the greater of $2.60 multiplied by the state population or $2,975,000. The PAB cap is the greater of $110 multiplied by the state population or $3235,115,000. The nine percent LIHTC is a decrease from 2021, which was the final year of the temporary 12.5 percent allocation increase from 2018 to 2021. Note that the Build Back Better Act contains an increase to the nine percent allocation and these numbers will change if the legislation is adopted.