SECTION 3. BACKGROUND

01 Section 42(h)(3)(D)(i) provides generally that the unused housing credit carryover of a state for any calendar year shall be assigned to the Secretary of the Treasury or his delegate (Secretary) for allocation among qualified states for the succeeding calendar year. The allocation of credits to qualified states is to be made from a national pool of unused credit authority (National Pool) consisting of all of the unused housing credit carryovers assigned to the Secretary..

02 Section 42(h)(3)(D)(ii) provides that the unused housing credit carryover of a state for any calendar year is the excess (if any) of—

(I) the unused state housing credit ceiling for the preceding calendar year (as referenced in § 42(h)(3)(C)(i) and defined in the flush language of § 42(h)(3)(C)); over

(II) the aggregate housing credit dollar amount allocated for the calendar year..

03 Section 42(h)(3)(D)(iv) provides generally that the term “qualified state” means, with respect to the current calendar year, any state that has allocated its entire state housing credit ceiling for the preceding calendar year and for which a request is made (not later than May 1 of the current calendar year) to receive an allocation of credit from the National Pool for the current calendar year..

04 Section 42(h)(3)(D)(iii) describes the formula for allocation of unused housing credit carryovers from the National Pool to qualified states. The amount to be allocated to a qualified state for any calendar year must bear the same ratio to the aggregate unused housing credit carryovers of all states for the preceding calendar year as that state’s population for the calendar year bears to the population of all qualified states for the calendar year. A state’s population, for this purpose, is determined in accordance with § 146(j) of the Code..

05 Section 146(j) provides generally that determinations of the population of any state are made with respect to any calendar year on the basis of the most recent census estimate of the resident population of that state released by the Bureau of the Census before the beginning of that calendar year..

Bulletin No. 2019–48 1215 November 25, 2019

ryovers that are available for allocation to qualified states from the current year National Pool.