The IRS issued Revenue Procedure 2025-32 to reflect the 12 percent Housing Credit allocation boost enacted through the One Big Beautiful Bill Act, after an earlier notice did not account for the change.
For the Housing Credit, the IRS confirmed a per-capita multiplier of $3.416 and a small-state minimum of $3,953,600. These figures reflect two important changes:
– A permanent 12% increase enacted through this summer’s federal reconciliation bill, and
– The continuation of the nickel-rounding rule, which now produces a non-rounded final figure once the 12% boost is applied.
For the Private Activity Bond (PAB) program, the per-capita multiplier will be $135 (a $5 increase from 2025), and the small-state minimum will rise to $397,625,000, an increase of more than $8.8 million.
In addition, the per-unit rehabilitation minimum for LIHTC developments will increase to $8,700, up $200 from 2025.
Why It Matters for Texas: While the per-capita change may appear modest, it compounds across the state’s large population—adding millions in Housing Credit authority and expanding the state’s bond cap. This permanent increase strengthens TDHCA’s ability to advance high-impact developments, reduce the number of unfunded applications, and plan for future rounds with greater financial flexibility.