Instructions For Form 8609 - 2016


Instructions for Form 8609
Department of the Treasury
Internal Revenue Service
(Rev. January 2016)
Low-Income Housing Credit Allocation and Certification
Section references are to the Internal Revenue Code unless
year in which the allocation is made if the building is part of a
otherwise noted.
project in which the taxpayer's basis is more than 10% of the
project's reasonably expected basis as of the end of that
Future Developments
second calendar year; or
For the latest information about developments related to
5. The allocation is made for a project that includes more
Form 8609 and its instructions, such as legislation enacted
than one building if:
after they were published, go to
a. The allocation is made during the project period,
What's New
b. The allocation applies only to buildings placed in
service during or after the calendar year in which the
The 9% minimum applicable percentage of section 42(b)(2)
allocation is made, and
has been made permanent for certain buildings placed in
service after July 30, 2008. For details, see the instructions
c. Each building in the project to which the allocation
for Part I.
applies is identified by a separate building identification
number (BIN).
General Instructions
Regarding 4. and 5., (carryover allocations) see sections
42(h)(1)(E) and 42(h)(1)(F) and Regulations section 1.42-6.
Purpose of Form
The agency can only make an allocation to a building
Owners of residential low-income rental buildings are
located within its geographical jurisdiction. Once an
allowed a low-income housing credit for each qualified
allocation is made, the credit is allowable for all years during
building over a 10-year credit period. Form 8609 can be used
the 10-year credit period. A separate Form 8609 must be
to obtain a housing credit allocation from the housing credit
completed for each building to which an allocation of credit is
agency. A separate Form 8609 must be issued for each
building in a multiple building project. Form 8609 is also used
Multiple Forms 8609. Allocations of credit in separate
to certify certain information.
calendar years require separate Forms 8609. Also, when a
building receives separate allocations for acquisition of an
Housing credit agency. This is any state or local agency
authorized to make low-income housing credit allocations
existing building and for rehabilitation expenditures, a
within its jurisdiction.
separate Form 8609 must be completed for each credit
Building identification number (BIN). This number is
Tax-exempt bonds. No housing credit allocation is required
assigned by the housing credit agency. The BIN initially
assigned to a building must be used for any allocation of
for any portion of the eligible basis of a qualified low-income
credit to the building that requires a separate Form 8609 (see
building that is financed with tax-exempt bonds taken into
account for purposes of the volume cap under section 146 if
Multiple Forms 8609, later). For example, rehabilitation
expenditures treated as a separate new building should not
principal payments on the financing are applied within a
have a separate BIN if the building already has one. Use the
reasonable period to redeem obligations the proceeds of
which were used to provide the financing or the financing is
number first assigned to the building.
refunded as described in section 146(i)(6). An allocation is
Allocation of credit. For an owner to claim a low-income
not needed when 50% or more of the aggregate basis of the
housing credit on a building (except as explained under
building and the land on which the building is located
Tax-exempt bonds, later), the housing credit agency must
(defined below) is financed with tax-exempt bonds described
make an allocation of the credit by the close of the calendar
in the preceding sentence. However, the owner still must get
year in which the building is placed in service, unless:
a Form 8609 from the appropriate housing credit agency
1. The allocation is the result of an advance binding
(with the applicable items completed, including an assigned
commitment by the credit agency made not later than the
close of the calendar year in which the building is placed in
Land on which the building is located. This includes
service (see section 42(h)(1)(C));
only land that is functionally related and subordinate to the
2. The allocation relates to an increase in qualified basis
qualified low-income building. (See Regulations sections
(see section 42(h)(1)(D));
1.103-8(a)(3) and 1.103-8(b)(4)(iii) for the meaning of
“functionally related and subordinate.”)
3. The allocation is made to a building located in the Gulf
Opportunity (GO) Zone, Rita GO Zone, or Wilma GO Zone, if
Filing Requirement
the allocation was initially made in 2006, 2007, or 2008, and
the building is placed in service during the period beginning
Housing credit agency. Complete and sign Part I of Form
on January 1, 2006, and ending on December 31, 2011 (see
8609 and make copies of the form. Submit a copy with Form
Pub. 4492, Information for Taxpayers Affected by Hurricanes
8610, Annual Low-Income Housing Credit Agencies Report,
Katrina, Rita, and Wilma, for a list of the counties and
and keep a copy for the records. The agency must send the
parishes in these specific zones);
original, signed Form 8609 (including instructions) to the
building owner.
4. The allocation is made for a building placed in service
no later than the second calendar year following the calendar
Feb 01, 2016
Cat. No. 52385A


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