Form 8609: Low Income Housing Credit Allocation And Certification

Form 8609, titled "Low-Income Housing Credit Allocation and Certification," plays a crucial role in the Low-Income Housing Tax Credit (LIHTC) program. This program incentivizes the development and maintenance of affordable housing for low-income residents by offering tax credits to owners of qualified buildings.

What's the Purpose of Form 8609?

Form 8609 serves two primary purposes:

A. Obtaining a Housing Credit Allocation: This form is used by the owner of a residential low-income rental building to apply for a housing credit allocation from the designated state or local housing credit agency.

B. Certifying Information: It also serves as a certification document for the owner to report specific details about the building, such as its occupancy, rent restrictions, and compliance with income targeting requirements.

Who Needs to File Form 8609?

The responsibility to file Form 8609 falls on the owner of a residential rental building seeking to claim the Low-Income Housing Credit. This typically applies to developers, property management companies, or individuals who own and operate qualified low-income housing projects.

When do I need to file Form 8609?

The timing for filing Form 8609 can vary slightly depending on your state's specific procedures. However, it's generally submitted during the early stages of project development, often before construction begins. You should consult your state's housing credit agency for exact deadlines.

Where can I get Form 8609?

You can download the Form 8609 attached below.

Do I need to file additional forms besides Form 8609?

Yes, claiming the LIHTC typically involves filing additional forms beyond Form 8609. The most common companion form is Form 8609-A, the "Annual Statement for Low-Income Housing Credit." This form is filed annually to report on the project's ongoing compliance with program requirements and calculate the actual low-income housing credit amount for tax purposes.

What happens after I file Form 8609?

Once you submit Form 8609, your state's housing credit agency will review your application. If approved, they will issue a formal allocation certification document, confirming the amount of housing credit your project is eligible for. This document becomes crucial when claiming the credit on your tax return.