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양식 8609, 낮은 소득 주택 신용 할당 및 인증 지침

2월 2022일

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  • 양식 8609 - 낮은 소득 주택 신용 할당 및 인증
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Department of the Treasury  
Internal Revenue Service  
Instructions for Form 8609  
Low-Income Housing Credit Allocation and Certification  
(Rev. February 2022)  
Section references are to the Internal Revenue Code unless  
otherwise noted.  
Allocation of credit. For an owner to claim a low-income  
housing credit on a building (except as explained under  
Tax-exempt bonds, later), the housing credit agency must  
make an allocation of the credit by the close of the calendar  
year in which the building is placed in service, unless:  
1. The allocation is the result of an advance binding  
commitment by the housing credit agency made not later  
than the close of the calendar year in which the building is  
placed in service (see section 42(h)(1)(C));  
Future Developments  
For the latest information about developments related to  
Form 8609 and its instructions, such as legislation enacted  
after they were published, go to IRS.gov/Form8609.  
What’s New  
Minimum credit rate. The Taxpayer Certainty and Disaster  
Tax Relief Act of 2020 set a new minimum applicable credit  
percentage of 4% for certain buildings. See Line 2 and  
Line 9a, later.  
Qualified disaster zones. The Taxpayer Certainty and  
Disaster Tax Relief Act of 2020 extends the deadlines for  
meeting the 10% and placed-in-service requirements under  
section 42(h)(1)(E) for designated buildings located in a  
qualified disaster zone. See Line 5b, and also Allocation of  
credit under Purpose of Form, later.  
Notice 2021-12. The instructions have been updated  
throughout, as needed, to reflect the temporary relief  
provided in Notice 2021-12, 2021-6 I.R.B. 828 (at  
IRS.gov/pub/irs-drop/n-21-12.pdf), as clarified by Notice  
2021-17, 2021-14 I.R.B. 984 (at IRS.gov/pub/irs-drop/  
n-21-17.pdf), and as amended by Notice 2022-5, 2022-5  
2. The allocation relates to an increase in qualified basis  
(see section 42(h)(1)(D));  
3. The allocation is made for a building placed in service  
no later than the second calendar year following the calendar  
year in which the allocation is made if the building is part of a  
project in which the taxpayer's basis as of the date which is 1  
year after the date that the allocation was made is more than  
10% of the project’s reasonably expected basis as of the end  
of that second calendar year (for certain calendar year 2021  
or 2022 allocations to buildings in qualified disaster areas  
replace "second calendar year" with "third calendar year" and  
"1 year" with "2 years" (see your housing credit agency and  
the Taxpayer Certainty and Disaster Tax Relief Act of 2020,  
sections 301(2) and 305(a)(3), for more information)) (also  
see the TIP below for other extensions); or  
4. The allocation is made for a project that includes more  
than one building if:  
a. The allocation is made during the project period,  
Revenue Ruling 2021-20. As a result of Revenue Ruling  
2021-20, 2021-51 I.R.B. 875 (at IRS.gov/pub/irs-drop/  
rr-21-20.pdf) as clarified by Revenue Procedure 2021-43,  
2021-51 I.R.B. 882 (at IRS.gov/pub/irs-drop/rp-21-43.pdf),  
the 4% floor in section 42(b)(3) does not apply to certain  
arrangements. See Line 2, later.  
b. The allocation applies only to buildings placed in  
service during or after the calendar year in which the  
allocation is made, and  
c. Each building in the project to which the allocation  
applies is identified by a separate building identification  
number (BIN).  
General Instructions  
Regarding (3) and (4) (carryover allocations), see sections  
42(h)(1)(E) and 42(h)(1)(F); Taxpayer Certainty and Disaster  
Act of 2020, sections 301(2) and 305(a)(3); and Regulations  
section 1.42-6.  
The agency can only make an allocation to a building  
located within its geographical jurisdiction. Once an  
allocation is made, the credit is allowable for all years during  
the 10-year credit period. A separate Form 8609 must be  
completed for each building to which an allocation of credit is  
made.  
Purpose of Form  
Owners of residential low-income rental buildings are  
allowed a low-income housing credit for each qualified  
building annually over a 10-year credit period. Form 8609  
can be used to obtain a housing credit allocation from the  
housing credit agency. A separate Form 8609 must be  
issued for each building in a multiple building project. Form  
8609 is also used to certify certain information.  
Housing credit agency. This is any state or local agency  
authorized to make low-income housing credit allocations  
within its jurisdiction.  
See the Note next for details on deadlines.  
TIP  
Building identification number (BIN). This number is  
assigned by the housing credit agency. The BIN initially  
assigned to a building must be used for any allocation of  
credit to the building that requires a separate Form 8609 (see  
Multiple Forms 8609, later). For example, rehabilitation  
expenditures treated as a separate new building shouldn't  
have a separate BIN if the building already has one. Use the  
number first assigned to the building.  
Note. Regarding (3) (carryover allocations), if the last day for  
an owner of a building with a carryover allocation to meet the  
10% test is:  
On or after April 1, 2020, and on or before December 31,  
2021, the deadline is extended to the original deadline plus 2  
years;  
On or after January 1, 2021, and before December 31,  
2022, the deadline is extended to December 31, 2022.  
Feb 15, 2022  
Cat. No. 52385A  
   
For buildings meeting the 10% test, if the original  
placed-in-service deadline for the building is:  
Note. The housing credit agency may require you to submit  
a copy of Form 8609 with a completed Part II to the agency.  
You should contact the agency to obtain agency filing  
requirements.  
Also, file Form 8609-A for each year of the 15-year  
compliance period. The credit is claimed on Form 8586,  
Low-Income Housing Credit. See the forms for filing  
instructions.  
December 31, 2020, the last day for the owner to place the  
building in service is December 31, 2022;  
December 31, 2021, and the original deadline for the 10%  
test in section 42(h)(1)(E)(ii) was before April 1, 2020, the  
new placed-in-service deadline again is December 31, 2022;  
December 31, 2021, and the original deadline for the 10%  
test in section 42(h)(1)(E)(ii) was on or after April 1, 2020,  
and on or before December 31, 2020, then the new  
placed-in-service deadline is December 31, 2023;  
Building Owner's Recordkeeping  
Keep the following items in your records for three years after  
the due date (including extensions) of the owner's tax return  
for the tax year that includes the end of the 15-year  
compliance period.  
December 31, 2022 (and thus the original deadline for the  
10% test was in 2021), then the new placed-in-service  
deadline is December 31, 2023.  
See Notice 2021-12, section IV.A and C, as amended by  
Notice 2022-5, section IV.A and C.  
A copy of the original Form 8609 received from the  
housing agency and all related Forms 8609-A (or  
predecessor Schedules A (Form 8609)), Forms 8586, and  
any Forms 8611, Recapture of Low-Income Housing Credit.  
Multiple Forms 8609. Allocations of credit in separate  
calendar years require separate Forms 8609. Also, when a  
building receives separate allocations for acquisition of an  
existing building and for rehabilitation expenditures, a  
separate Form 8609 must be completed for each credit  
allocation.  
Tax-exempt bonds. No housing credit allocation is required  
for any portion of the eligible basis of a qualified low-income  
building that is financed with tax-exempt bonds taken into  
account for purposes of the volume cap under section 146 if  
principal payments on the financing are applied within a  
reasonable period to redeem obligations the proceeds of  
which were used to provide the financing, or the financing is  
refunded as described in section 146(i)(6). An allocation isn't  
needed when 50% or more of the aggregate basis of the  
building and the land on which the building is located  
(defined below) is financed with tax-exempt bonds described  
in the preceding sentence. However, the owner must still get  
a Form 8609 from the appropriate housing credit agency  
(with the applicable items completed, including an assigned  
BIN).  
If the maximum applicable credit percentage allowable on  
line 2 reflects an election under section 42(b)(1)(A)(ii), (or  
former section 42(b)(2)(A)(ii), for buildings placed in service  
before July 31, 2008), a copy of the election statement.  
If the binding agreement specifying the housing credit  
dollar amount is contained in a separate document, a copy of  
the binding agreement.  
If the housing credit dollar amount allocated on line 1b  
reflects an allocation made under section 42(h)(1)(E) or  
section 42(h)(1)(F), a copy of the allocation document.  
Specific Instructions  
Part I—Allocation of Credit  
Completed by Housing Credit Agency Only  
Addition to qualified basis. Check this box if an allocation  
relates to an increase in qualified basis under section 42(f)  
(3). Enter only the housing credit dollar amount for the  
increase. Don't include any portion of the original qualified  
basis when determining this amount.  
Amended form. Check this box if this form amends a  
previously issued form. Complete all entries and explain the  
reason for the amended form. For example, if there is a  
change in the amount of initial allocation before the close of  
the calendar year, file an amended Form 8609 instead of the  
original form.  
Item A. Identify the building for which this Form 8609 is  
issued when there are multiple buildings with the same  
address (e.g., BLDG. 6 of 8).  
Line 1a. Generally, where Form 8609 is the allocating  
document, the date of the allocation is the date the Form  
8609 is completed, signed, and dated by an authorized  
official of the housing credit agency during the year the  
building is placed in service and mailed to the owner of the  
qualified low-income building.  
However, if an allocation is made under section 42(h)(1)  
(E) or 42(h)(1)(F), the date of allocation is the date the  
authorized official of the housing credit agency completes,  
signs, and dates the section 42(h)(1)(E) or 42(h)(1)(F)  
document used to make the allocation. If no allocation is  
required (i.e., 50% or greater tax-exempt bond financed  
building), leave line 1a blank.  
Land on which the building is located. This includes  
only land that is functionally related and subordinate to the  
qualified low-income building. (See Regulations sections  
1.103-8(a)(3) and 1.103-8(b)(4)(iii) for the meaning of  
“functionally related and subordinate.”)  
Filing Requirement  
Housing credit agency. Complete and sign Part I of Form  
8609 and make copies of the form. Submit a copy with Form  
8610, Annual Low-Income Housing Credit Agencies Report,  
and keep a copy for the records. The agency must send the  
original, signed Form 8609 (including instructions) to the  
building owner.  
Building owner. You must make a one-time submission of  
Form 8609 to the Low-Income Housing Credit (LIHC) Unit at  
the IRS Philadelphia campus address below. After making a  
copy of the completed original Form 8609, file the original of  
the form with the unit no later than the due date (including  
extensions) of your first tax return with which you are filing  
Form 8609-A, Annual Statement for Low-Income Housing  
Credit.  
Where to file Form 8609. Send the properly completed  
and signed form(s) to:  
Department of the Treasury  
Internal Revenue Service Center  
Philadelphia, PA 19255-0549  
Line 1b. Enter the housing credit dollar amount allocated to  
the building for each year of the 10-year credit period. The  
-2-  
Instructions for Form 8609 (2-2022)  
     
amount should equal the percentage on line 2 multiplied by  
the amount on line 3a. The housing credit agency is required  
to allocate only the amount necessary to assure project  
feasibility. To accomplish this, the agency can, to the extent  
permitted by the Code and regulations, lower the percentage  
on line 2 and the amount on line 3a. See Line 2 next and  
Line 3a, later, for the limits that apply. For tax-exempt bond  
projects for which no allocation is required, enter the housing  
credit dollar amount allowable under section 42(h)(4).  
Line 2. The maximum applicable credit percentage  
allowable is determined in part by the date the building was  
placed in service. Follow the instructions pertaining to the  
date the building was placed in service.  
Enter the maximum applicable credit percentage  
allowable to the building for the month the building was  
placed in service or, if applicable, for the month determined  
under section 42(b)(1)(A)(ii). This percentage may be less  
than the applicable percentage published by the IRS monthly  
in the Internal Revenue Bulletin.  
the 70% present value credit, but don't enter less than 9%,  
unless the housing credit agency determines that a lesser  
amount is necessary to assure project feasibility. For new  
buildings that are federally subsidized, or existing buildings,  
use the applicable percentage for the 30% present value  
credit, but don’t enter less than 4% if they meet the criteria in  
Line 2 above for the 4% percentage. See Line 6, later, for the  
definition of “federally subsidized,” and the time period for  
which the definition applies. A taxpayer may elect under  
section 42(i)(2)(B) to reduce eligible basis by the proceeds of  
any tax-exempt obligation in order to obtain the higher credit  
percentage.  
Additions to qualified basis. For allocations to buildings  
for additions to qualified basis under section 42(f)(3), don't  
reduce the applicable percentage even though the building  
owner may only claim a credit based on two-thirds of the  
credit percentage allocated to the building.  
Line 3a. Enter the maximum qualified basis of the building.  
In computing qualified basis, the housing credit agency  
should use only the amount of eligible basis necessary to  
result in a qualified basis which, when multiplied by the  
percentage on line 2, equals the credit amount on line 1b.  
However, the housing credit agency isn't required to reduce  
maximum qualified basis and can lower the maximum  
applicable percentage on line 2. To compute qualified basis,  
multiply the eligible basis of the qualified low-income building  
by the smaller of:  
A minimum applicable credit percentage of:  
!
CAUTION  
4% is in effect for new federally subsidized buildings, and  
for existing buildings, placed into service after December 31,  
2020. For the minimum 4% rate to apply, a building must also  
receive an allocation of housing credit dollar amount after  
December 31, 2020, or have a portion of the building  
financed with an obligation described in section 42(h)(4)(A)  
that is issued after December 31, 2020. If these  
The fractional number of low-income units to all residential  
rental units in the building (the “unit fraction”) or  
The fractional amount of floor space of the low-income  
circumstances apply, don’t enter less than 4% on line 2. See  
section 42(b)(3) and the Taxpayer Certainty and Disaster Tax  
Relief Act of 2020, section 201. But see the Note next.  
units to the floor space of all residential rental units in the  
building (the “floor space fraction”).  
If the close of the first year of the credit period with  
9% is in effect for new non-federally subsidized buildings  
respect to a building is on or after April 1, 2020, and  
on or before December 31, 2022, then, for purposes  
TIP  
placed in service after July 30, 2008. The 9% minimum  
applies to new non-federally subsidized buildings even if the  
taxpayer made an irrevocable election under former section  
42(b)(1)(A)(ii). If this circumstance applies, don’t enter less  
than 9% on line 2. See section 42(b)(2).  
of section 42(f)(3)(A)(ii), the qualified basis for the building for  
the first year of the credit period is calculated by taking into  
account any increase in the number of low-income units by  
the close of the 6-month period following the close of that first  
year. See Notice 2021-12, section IV.E, as clarified by Notice  
2021-17, and amended by Notice 2022-5, section IV.E.  
Note. As a result of Revenue Ruling 2021-20, 2021-51  
I.R.B. 875 (at IRS.gov/pub/irs-drop/rr-21-20.pdf) as clarified  
by Revenue Procedure 2021-43, 2021-51 I.R.B. 882 (at  
IRS.gov/pub/irs-drop/rp-21-43.pdf), the 4% floor in section  
42(b)(3) does not apply to:  
Generally, the term "low-income unit" means any unit in a  
building if the unit is rent-restricted and the individuals  
occupying the unit meet the income limitation applicable to  
the project of which the building is a part. See section 42(i)(3)  
(A). Generally, a unit isn't treated as a low-income unit unless  
it's suitable for occupancy and used other than on a transient  
basis. Section 42(i)(3)(B) provides for certain exceptions  
(e.g., units that provide for transitional housing for the  
homeless may qualify as low-income units). See sections  
42(i)(3) and 42(c)(1)(E) for more information. If individuals  
are medical personnel or other essential workers (as defined  
by state or local governments) who provided services during  
the COVID-19 pandemic, then, for purposes of emergency  
housing provided from April 1, 2020, to December 31, 2022,  
owners of low-income housing projects may treat these  
individuals as if they were “displaced individuals.” That is,  
owners could have provided emergency housing for these  
individuals during this period pursuant to the provisions of  
Revenue Procedure 2014-49, 2014-37 I.R.B 535 (at  
A building that is financed in part with a draw-down exempt  
facility bond issue that was issued in 2020 and on which one  
or more draws are taken after December 31, 2020;  
A building that is financed in part with proceeds of an  
exempt facility bond issue that was issued in 2020 and in part  
with proceeds of a different exempt facility bond issue that  
was issued in a minimal amount after December 31, 2020; or  
A building that receives an allocation of housing credit  
dollar amount in 2020 and a minimal additional allocation  
after December 31, 2020.  
When requirements of Regulations section 1.42-8  
must be met. If an election was made under section 42(b)  
(1)(A)(ii) to use the applicable percentage for a month other  
than the month in which a building is placed in service, the  
requirements of Regulations section 1.42-8 must be met. The  
agency must keep a copy of the binding agreement. The  
applicable percentage is published monthly in the Internal  
Revenue Bulletin. For new buildings that aren't federally  
subsidized under section 42(i)(2)(A) and are placed in  
service after July 30, 2008, use the applicable percentage for  
IRS.gov/pub/irs-drop/rp-14-49.pdf), and Revenue Procedure  
2014-50, 2014-37 I.R.B. 540 (at IRS.gov/pub/irs-drop/  
rp-14-50.pdf), as applicable. See Notice 2021-12,  
section V.E, as amended by Notice 2022-5, section V.E.  
-3-  
Instructions for Form 8609 (2-2022)  
   
Except as explained in Line 3b next, the eligible basis for a  
new building is its adjusted basis as of the close of the first  
tax year of the credit period. For certain existing buildings,  
the eligible basis is its acquisition cost plus capital  
improvements through the close of the first tax year of the  
credit period. See Line 3b next and section 42(d) for other  
exceptions and details.  
Note. The placed-in-service date for an existing building is  
determined separately from the placed-in-service date of  
rehabilitation expenditures treated as a separate new  
building.  
Line 5b. Check this box if the date of allocation on line 1a is  
in calendar year 2021 or 2022, the building is located in a  
qualified disaster zone, and the allocation is discussed in the  
parenthetical in (3) under Allocation of credit in Purpose of  
Form, earlier.  
Line 3b. Special rule to increase basis for buildings in  
certain high-cost areas. If the building is located in a  
high-cost area (i.e., “qualified census tract” or “difficult  
development area”), the eligible basis may be increased as  
follows.  
Note. If you have checked the box on line 5b of your Form  
8609, include, on line 7a of Form 8610, the credit amount  
allocated by your Form 8609.  
For new buildings, the eligible basis may be up to 130% of  
such basis determined without this provision.  
Line 6. Not more than 90% of the state housing credit ceiling  
for any calendar year can be allocated to projects other than  
projects involving qualified nonprofit organizations. A project  
involves a qualified nonprofit organization if that qualified  
nonprofit organization owns an interest in the project (directly  
or through a partnership) and materially participates (within  
the meaning of section 469(h)) in the development and  
operation of the project throughout the compliance period.  
See section 42(h)(5) for more details.  
Generally, no credit is allowable for acquisition of an  
existing building unless substantial rehabilitation is done. See  
sections 42(d)(2)(B)(iv) and 42(f)(5) that were in effect on the  
date the allocation was made. Don't issue Form 8609 for  
acquisition of an existing building unless substantial  
rehabilitation under section 42(e) is placed in service.  
Lines 6a and 6d. A building is treated as federally  
subsidized if at any time during the tax year or prior tax year  
there is outstanding any tax-exempt bond financing, the  
proceeds of which are used (directly or indirectly) for the  
building or its operation. If a building is federally subsidized,  
then box 6a or 6d must be checked regardless of whether the  
taxpayer has informed the housing credit agency that the  
taxpayer intends to make the election under section 42(i)(2)  
(B) to reduce the eligible basis by the proceeds of any  
tax-exempt obligation.  
For existing buildings, the rehabilitation expenditures  
under section 42(e) may be up to 130% of the expenditures  
determined without regard to this provision.  
Enter the percentage to which eligible basis was  
increased. For example, if the eligible basis was increased to  
120%, enter “120.”  
Section 42(d)(5)(B)(v) permits a similar increase in basis  
for any non-federally subsidized building designated by the  
state agency to need the basis increase to be financially  
feasible as part of a qualified low-income housing project.  
See section 42(d)(5)(B) for the definitions of qualified  
census tract and difficult development area, and for  
other details.  
TIP  
Note. Before it is increased, the eligible basis must be  
reduced by any federal subsidy which the taxpayer elects to  
exclude from eligible basis. For buildings placed in service  
after July 30, 2008, the eligible basis can't include any costs  
financed with federal grant proceeds.  
Line 4. Enter the percentage of the aggregate basis of the  
building and land on which the building is located that is  
financed by certain tax-exempt bonds. If this amount is zero,  
enter -0-. Don't leave this line blank.  
Line 5a. The placed-in-service date for a residential rental  
building is the date the first unit in the building is ready and  
available for occupancy under state or local law.  
Rehabilitation expenditures treated as a separate new  
building under section 42(e) are placed in service at the  
close of any 24-month period over which the expenditures  
are aggregated, whether or not the building is occupied  
during the rehabilitation period.  
Part II—First-Year Certification  
Completed by Building Owner With Respect to  
the First Year of the Credit Period  
By completing Part II, you are certifying the date the  
building is placed in service corresponds to the date  
!
CAUTION  
on line 5a. If the Form 8609 issued to you contains  
the wrong date or no date, obtain a new or amended Form  
8609 from the housing credit agency.  
However, for purposes of section 42(e)(3)(A)(ii), if the last  
day of the 24-month period for a building is:  
On or after April 1, 2020, and before December 31, 2021,  
Line 7. Enter the eligible basis (in dollars) of the building.  
Eligible basis doesn't include the cost of land. Determine  
eligible basis at the close of the first year of the credit period  
(see sections 42(f)(1), 42(f)(5), and 42(g)(3)(B)(iii) for  
determining the start of the credit period).  
For new buildings, the eligible basis is generally the cost  
of construction or rehabilitation expenditures incurred under  
section 42(e).  
For existing buildings, the eligible basis is the cost of  
acquisition plus rehabilitation expenditures not treated as a  
separate new building under section 42(e) incurred by the  
close of the first year of the credit period.  
If the housing credit agency has entered an increased  
percentage in Part I, line 3b, multiply the eligible basis by the  
increased percentage and enter the result.  
the last day to incur the minimum rehabilitation expenditures  
for the building is postponed to the original deadline plus 18  
months;  
On or after January 1, 2022, and on or before June 30,  
2022, then that deadline is extended to June 30, 2023;  
On or after July 1, 2022, and on or before December 31,  
2022, then that deadline is extended to the original date plus  
12 months;  
On or after January 1, 2023, and on or before December  
30, 2023, then that original deadline is extended to  
December 31, 2023.  
See Notice 2021-12, section IV.B, as amended by Notice  
2022-5, section IV.B.  
-4-  
Instructions for Form 8609 (2-2022)  
       
Residential rental property may qualify for the credit even  
though part of the building in which the residential rental units  
are located is used for commercial use. Don't include the  
cost of the nonresident rental property. However, you may  
generally include the basis of common areas or tenant  
facilities, such as swimming pools or parking areas, provided  
there is no separate fee for the use of these facilities and they  
are made available on a comparable basis to all tenants in  
the project. If an amenity or common area in a low-income  
building or project was temporarily unavailable or closed  
during some or all of the period from April 1, 2020, to  
December 31, 2022, and the unavailability or closure was in  
response to the COVID-19 pandemic and not because of  
other noncompliance for section 42 purposes, then this  
temporary unavailability or closure does not result in a  
reduction of the eligible basis of the building. See Notice  
2021-12, section V.C, as amended by Notice 2022-5,  
section V.C.  
Notwithstanding a checked “Yes” box on line 8b,  
failure to attach a statement providing the above  
required information will result in each building being  
!
CAUTION  
considered a separate project under section 42(g)(3)(D). The  
minimum set-aside requirement (see Line 10c, later) is a  
project-based test.  
Two or more qualified low-income buildings may be  
included in a multiple building project only if they:  
Are located on the same tract of land (including contiguous  
parcels), unless all of the dwelling units in all of the buildings  
being aggregated in the multiple building project are rent  
restricted units (see section 42(g)(7));  
Are owned by the same person for federal tax purposes;  
Are financed under a common plan of financing; and  
Have similarly constructed housing units.  
A qualified low-income building includes residential rental  
property that is an apartment building, a single-family  
dwelling, a town house, a row house, a duplex, or a  
condominium.  
During the above period for common areas, an  
Agency may deny any application of the above  
!
CAUTION  
waiver or, based on public health criteria, may limit  
Line 9a. Follow the instructions that apply for the date the  
the waiver to partial closure, or to limited or conditional  
access of an amenity or common area. See Notice 2021-12,  
section V.C, as amended by Notice 2022-5, section V.C.  
building was placed in service.  
You may elect to reduce the eligible basis by the proceeds  
of any tax-exempt obligation and claim the 70% present  
value credit on the remaining eligible basis. However, if you  
make this election, you may not claim the 30% present value  
credit on the portion of the basis that was financed with the  
tax-exempt obligation.  
The eligible basis shall not include any costs paid by the  
proceeds of a federal grant. Also, reduce the eligible basis by  
the entire basis allocable to non-low-income units that are  
above average quality standard of the low-income units in the  
building. You may, however, include a portion of the basis of  
these non-low-income units if the cost of any of these units  
doesn't exceed by more than 15% the average cost of all  
low-income units in the building and you elect to exclude this  
excess cost from the eligible basis by checking the “Yes” box  
on line 9b. See section 42(d)(3).  
You may elect to reduce the eligible basis by the proceeds  
of any tax-exempt obligation to obtain a higher credit  
percentage. To make this election, check the “Yes” box in  
Part II, line 9a. Reduce the eligible basis by the obligation  
proceeds before entering the amount on line 7. You must  
reduce the eligible basis by such obligation proceeds before  
multiplying the eligible basis by the increased percentage in  
Part I, line 3b.  
Line 8a. Multiply the eligible basis of the building shown on  
line 7 by the smaller of the unit fraction or the floor space  
fraction as of the close of the first year of the credit period  
and enter the result on line 8a. Low-income units are units  
occupied by qualifying tenants, while residential rental units  
are all units, whether or not occupied. See Line 3a, earlier.  
Line 8b. Each building is considered a separate project  
under section 42(g)(3)(D) unless, before the close of the first  
calendar year in the project period (defined in section 42(h)  
(1)(F)(ii)), each building that is (or will be) part of a multiple  
building project is identified by attaching the statement  
described below.  
The 9% and 4% minimum applicable credit  
percentages described in Line 2, earlier, still apply.  
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CAUTION  
Line 9b. See Line 7, earlier.  
Line 10a. You may elect to begin the credit period in the tax  
year after the building is placed in service. Once made, the  
election is irrevocable.  
Note. Section 42(g)(3)(B)(iii) provides special rules for  
determining the start of the credit period for certain multiple  
building projects.  
Line 10b. Partnerships with 35 or more partners are treated  
as the taxpayer for purposes of recapture unless an election  
is made not to treat the partnership as the taxpayer. Check  
the “Yes” box if you don't want the partnership to be treated  
as the taxpayer for purposes of recapture. Once made, the  
election is irrevocable.  
Line 10c. You must meet the minimum set-aside  
requirements under section 42(g)(1) for the project by  
electing one of the following tests. Once made, the election is  
irrevocable.  
20-50 Test. Twenty percent (20%) or more of the  
residential units in the project must be both rent restricted  
and occupied by individuals whose income is 50% or less of  
the area median gross income.  
40-60 Test. Forty percent (40%) or more of the residential  
The statement must be attached to this Form 8609 and  
units in the project must be both rent restricted and occupied  
by individuals whose income is 60% or less of the area  
median gross income.  
include:  
The name and address of the project and each building in  
the project,  
Average Income Test. Forty percent (40%) or more (25%  
The BIN of each building in the project,  
or more in the case of a project described in section 142(d)  
(6)) of the residential units in the project must be both rent  
restricted and occupied by individuals whose income does  
not exceed the imputed income limitation designated by the  
taxpayer with respect to the respective unit. The average of  
The aggregate credit dollar amount for the project, and  
The credit allocated to each building in the project.  
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Instructions for Form 8609 (2-2022)  
   
the imputed income limitations designated must not be more  
than 60% of the area median gross income. The designated  
imputed income limitation of a unit can only be 20%, 30%,  
40%, 50%, 60%, 70%, or 80% of the area median gross  
income.  
be occupied at all times during the compliance period by  
tenants whose income is 40% or less of the area median  
gross income (or when applicable, national non-metropolitan  
median income). A deep rent skewed project itself must meet  
the requirements of section 142(d)(4)(B). Once made, the  
election is irrevocable.  
The average income test is only available for  
elections made after March 23, 2018.  
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Privacy Act and Paperwork Reduction Act Notice. We  
ask for the information on this form to carry out the Internal  
Revenue laws of the United States. Claiming this credit is  
voluntary; however, if you do claim the credit, sections 42,  
6001, and 6011 require you to provide this information.  
Section 6109 requires you to provide your taxpayer  
identifying number (SSN, EIN, or ITIN). We need this  
information to ensure that you are complying with the  
revenue laws and to allow us to figure and collect the right  
amount of tax. We may disclose this information to the  
Department of Justice for civil or criminal litigation, and to  
cities, states, the District of Columbia, and U.S.  
CAUTION  
Note. Owners of buildings in projects located in New York  
City may not use the 40-60 Test. Instead, they may use the  
25-60 Test. Under the 25-60 Test, 25% or more of the  
residential units in the project must be both rent restricted  
and occupied by individuals whose income is 60% or less of  
the area median gross income (see section 142(d)(6)).  
Rural projects. For purposes of the 20-50, 40-60,  
average income, and 25-60 tests, “national non-metropolitan  
median income” will be used for determining income if it  
exceeds “area median gross income,” but only for  
determinations of income made after July 30, 2008, and  
buildings with an allocation of credit. See section 42(i)(8) for  
details.  
commonwealths and possessions for use in administering  
their tax laws. We may also disclose this information to other  
countries under a tax treaty, to federal and state agencies to  
enforce federal nontax criminal laws, or to federal law  
enforcement and intelligence agencies to combat terrorism.  
Failure to provide this information may delay or prevent  
processing your claim. Providing false information may  
subject you to penalties.  
The minimum set-aside requirement is a  
project-based test and must be met by the close of  
!
CAUTION  
the first year of the credit period in order to claim any  
credit for the first year or for any subsequent years.  
You are not required to provide the information requested  
on a form that is subject to the Paperwork Reduction Act  
unless the form displays a valid OMB control number. Books  
or records relating to a form or its instructions must be  
retained as long as their contents may become material in  
the administration of any Internal Revenue law.  
Line 10d. The deep rent skewed 15-40 election isn't an  
additional test for satisfying the minimum set-aside  
requirements of section 42(g)(1). The 15-40 test is an  
election that relates to the determination of a low-income  
tenant's income. Generally, a continuing resident's income  
may increase up to 140% of the applicable income limit.  
If the 20-50, 40-60, or 25-60 test under the minimum  
The time needed to complete and file the form will vary  
depending on individual circumstances. The estimated  
average time is:  
set-aside rules described, earlier, in Line 10c has been  
elected, the applicable income limit generally is 50% or less  
or 60% or less of the area median gross income (or, when  
applicable, national non-metropolitan median income).  
Learning about the law or the form.  
Recordkeeping .  
Preparing and sending the form to the IRS.  
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4 hr., 10 min.  
10 hr., 45min.  
4 hr., 31 min.  
If the average income test in Line 10c has been elected,  
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the applicable income limit generally is the imputed income  
limitation designated by the taxpayer with respect to the  
respective unit. The average of the imputed income  
limitations designated must not exceed 60% of the area  
median gross income (or, when applicable, national  
non-metropolitan median income). Also, the designated  
imputed income limitation of any unit must be in 10%  
increments between the range of 20% and 80% of the area  
median gross income (or, when applicable, national  
non-metropolitan median income).  
If you have comments concerning the accuracy of these  
time estimates or suggestions for making these forms  
simpler, we would be happy to hear from you. You can send  
your comments from IRS.gov/FormsPubs. Click on “Help  
with Forms and Instructions” and then on “Give us feedback.”  
Or you can send your comments to the Internal Revenue  
Service, Tax Forms and Publications, 1111 Constitution Ave.  
NW, IR-6526, Washington, DC, 20224. Do not send the tax  
form to this office. Instead, see Filing Requirement, earlier.  
When the deep rent skewed election is made, the income  
of a continuing resident may increase up to 170% of the  
applicable income limit. If the deep rent skewed election is  
made, at least 15% of all low-income units in the project must  
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Instructions for Form 8609 (2-2022)