Revenue Ruling 2020-04 clarifies the manner to properly compute the income limits applicable to the low-income housing credit under § 42 of the Internal Revenue Code.  The Consolidated Appropriations Act of 2018 added a new minimum set-aside test, the average income test (§ 42(g)(1)(C)), to the existing minimum set-aside tests available to owners of a low-income housing project.  This revenue ruling addresses the additional income limits available in the average income test.

Revenue Ruling 2020-04 will be in IRB:  2020-8, dated February 18, 2020.