What Is Form 8609-A for the Low-Income Housing Credit?

Form 8609-A, Annual Statement for Low-Income Housing Credit, is a tax form completed annually by building owners to calculate and claim their yearly Low-Income Housing Tax Credit (LIHTC). It is distinct from the initial Form 8609, Low-Income Housing Credit Allocation and Certification, which is issued by a state Housing Credit Agency (HCA) only once to certify the building at the beginning of the project.

Each year of the 15-year LIHTC compliance period, the building owner must complete and file Form 8609-A. This document uses figures from the initial Form 8609 and current-year operational data to confirm that the building continues to meet the requirements of Internal Revenue Code Section 42 and to calculate the credit.

Understanding the Information on Form 8609-A

Interpreting the details for Form 8609-A is a direct process, as the owner populates it using their own records and the initial Form 8609. The form is structured to present a clear summary of the building’s status and the credit details for the tax year.

Part I of the form, titled “Compliance Information,” identifies the specific property and owner. This section includes the owner’s Taxpayer Identification Number (TIN) and the building’s full address. It also contains the Building Identification Number (BIN), a unique identifier assigned by the HCA on Form 8609. This BIN is used on all filings for the entire 15-year compliance period to ensure the IRS can track the project.

Part II, “Computation of Credit,” contains the financial data to determine the tax credit amount. This section includes the building’s eligible basis, the total cost of the building that qualifies for the credit, excluding land costs. It also uses the qualified basis, derived by multiplying the eligible basis by the percentage of the building occupied by low-income tenants. The applicable percentage used to calculate the credit is determined by the HCA and recorded on the initial Form 8609.

The placed-in-service date, established on the original Form 8609, marks the official start of the building’s operational life for tax purposes. The first year of the credit period begins the 10-year window over which the credit is claimed and the 15-year compliance period. These dates dictate the schedule for claiming credits and the duration of the owner’s compliance responsibilities.

Using Form 8609-A to Claim the Credit

Once a building owner completes Form 8609-A, the next step is to use it to formally claim the Low-Income Housing Credit. This procedure involves transferring the calculated credit amount from Form 8609-A to Form 8586, Low-Income Housing Credit. Form 8586 consolidates the credits from all of an owner’s qualified buildings and is submitted with their primary federal income tax return.

If an owner has multiple buildings that qualify for the LIHTC, they must complete a separate Form 8609-A for each one. The total of the credit amounts from all individual Forms 8609-A is then summed and entered on the single Form 8586 that is filed for the tax year.

For building owners who are pass-through entities, such as partnerships or S corporations, the entity itself completes Form 8609-A and Form 8586. The entity then provides a Schedule K-1 to each partner or shareholder. This Schedule K-1 reports each individual’s share of the housing credit, which they then claim on their personal tax returns.

A copy of each completed Form 8609-A must be attached to Form 8586 when the tax return is filed. This provides the IRS with the necessary documentation to verify the credit being claimed. The original Form 8609 is filed only once with the first year’s tax return; for all subsequent years, only the annual Form 8609-A is required.

Record-Keeping and Compliance Responsibilities

Ownership of a low-income housing project carries long-term responsibilities beyond the annual tax filing. The IRS mandates strict record-keeping for the full 15-year period. Owners must retain a copy of Form 8609-A for each building for every year. Records for a given tax year must be kept for at least six years after the filing due date for that year. However, records for the first year of the credit period must be retained for at least six years after the 15-year compliance period has ended.

This extensive retention requirement is linked to the risk of credit recapture. If a building fails to meet low-income occupancy requirements or is sold improperly, the IRS can demand repayment of a portion of the tax credits claimed in previous years. This is known as recapture, and the IRS uses Form 8611, Recapture of Low-Income Housing Credit, to calculate the amount owed. A complete file of past Forms 8609-A provides the documentation to prove historical compliance and defend against potential recapture.

These records, including tenant income certifications and annual compliance reports submitted to the HCA, support the data reported on Form 8609-A. Should the IRS or the state HCA conduct an audit, the owner must be able to produce these documents to validate the credits claimed throughout the project’s life.

Correcting Errors on Form 8609-A

Since the building owner is responsible for completing and filing Form 8609-A, they are also responsible for its accuracy. If an owner discovers an error on a Form 8609-A after filing their tax return, the standard procedure is to file an amended return. This involves submitting a new, corrected Form 8609-A along with the amended return to ensure the IRS has the accurate information.

The process for correction depends on the source of the error. If the mistake was a calculation or data entry error made by the owner, the owner can correct it directly on a new version of the form. However, if the error on Form 8609-A is due to incorrect information on the original Form 8609 issued by the HCA—such as an incorrect Building Identification Number (BIN)—the owner must first contact the HCA. The HCA will review the information and, if it agrees, issue a corrected Form 8609, which the owner then uses to prepare and file an accurate Form 8609-A.