New IRS Private Letter Ruling and Inclusion of Offsite Infrastructure

Owners and developers of low-income housing tax credit projects that incur costs associated with offsite improvements will be pleased to learn of a recently-issued IRS Private Letter Ruling (PLR 200916007). The PLR (which can not be cited as legal precedent, but does provide significant guidance as to how the IRS will likely view the issues presented in the PLR) concludes that the costs of certain offsite infrastructure improvements can be included in the eligible basis of residential buildings that quality for low-income housing tax credits.

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