What Is Form 8610 and Who Is Required to File It?

Form 8610, titled the Annual Low-Income Housing Credit Agencies Report, is an information return filed with the Internal Revenue Service (IRS). This form is a component of the Low-Income Housing Tax Credit (LIHTC) program, which encourages investment in affordable rental housing. It is not a form that individual taxpayers or building owners file themselves; instead, state and local housing credit agencies are responsible for submitting it. The primary function of the form is to provide the IRS with a summary of all the low-income housing tax credits the agency has allocated to buildings throughout the calendar year.

The Housing Agency’s Reporting Responsibility

State and local housing credit agencies file Form 8610 to report their allocation activities to the IRS, as mandated by Section 42 of the Internal Revenue Code. The filing deadline is the last day of February of the year following the allocation year. The agency confirms it has not awarded more credits than authorized under the state’s annual housing credit ceiling. For 2025, this ceiling is based on factors like $3.00 times the state’s population or a minimum of $3,455,000.

Part I of Form 8610 reports the dollar amount of housing credits allocated during the year, while Part II reports on compliance monitoring activities like site visits and tenant eligibility reviews. The form also acts as a transmittal for other documents, including copies of Form 8609 for each building and Schedule A for specific carryover allocations.

Key Information Reported to the IRS

When a housing agency files Form 8610, it provides the IRS with several data points for each building that receives a tax credit allocation. The agency assigns a unique Building Identification Number (BIN) to each building in a project, which is used to track the building throughout its 15-year compliance period. Another detail is the date the building was “placed in service,” which is the date it is certified as ready for occupancy. This date marks the beginning of the 10-year period during which the owner can claim the tax credits.

The agency also reports the “qualified basis” of the building, which is the total cost of the property attributable to the low-income units. The “applicable percentage” used to determine the credit is also reported. This percentage is set by the IRS and varies depending on the type of construction and if the project receives other federal subsidies. Finally, Form 8610 reports the total annual credit amount allocated to the building, which is the dollar figure the owner may claim each year.

Receiving and Understanding Schedule A

While building owners do not file Form 8610, they do receive a document from the state housing agency for projects receiving a carryover allocation. The agency issues Schedule A (Form 8610), Carryover Allocation of Low-Income Housing Credit. This schedule serves as the owner’s official notification of the tax credit commitment for their specific building and is the primary evidence of their right to claim the LIHTC.

The total amount of the credit allocated to the building and the Building Identification Number (BIN) are prominently displayed. Other details, such as the date of the allocation and the address of the property, are included to provide a complete record.

How to Use Allocation Documents for Form 8586

After receiving their allocation documents, the building owner must use the information to complete their own tax forms. The data from Schedule A is transferred to Form 8586, the Low-Income Housing Credit. This is the form building owners or their investment partners file with their federal income tax return to claim the allocated credit.

The owner takes the Building Identification Number (BIN) and the annual credit amount from Schedule A and enters them on the corresponding lines of Form 8586. To substantiate the credit claim, the owner must attach Form 8609-A, Annual Statement for Low-Income Housing Credit, to their income tax return.