IRS Form 8610 – The Low-Income Housing Tax Credit (LIHTC) program is a vital federal initiative designed to encourage the development of affordable rental housing for low-income households across the United States. Administered by the Internal Revenue Service (IRS) in partnership with state housing credit agencies, the program allocates tax credits to developers who build or rehabilitate qualifying properties. At the heart of this program’s reporting requirements lies IRS Form 8610, the Annual Low-Income Housing Credit Agencies Report. This form ensures transparency and accountability in how credits are distributed each year.
In this SEO-optimized article, we’ll explore everything you need to know about IRS Form 8610, including its purpose, who must file it, filing deadlines, penalties for non-compliance, key sections, and recent updates as of 2026. Whether you’re a housing agency administrator, tax professional, or stakeholder in affordable housing, understanding this form is essential for compliance with federal regulations.
What Is IRS Form 8610 and Its Purpose?
IRS Form 8610 serves as an annual summary report for state housing credit agencies to document their allocation of low-income housing tax credits during the calendar year. Specifically, it is used to:
- Report the total dollar amount of housing credits allocated to qualified projects.
- Transmit copies of Form 8609 (Low-Income Housing Credit Allocation and Certification) issued to project owners.
- Submit Schedule A (Form 8610) for any carryover allocations, which allow unused credits from one year to be carried forward.
This form acts as a transmittal and reconciliation document, helping the IRS track the distribution of LIHTC credits nationwide. By requiring agencies to file Form 8610, the IRS ensures that allocations align with federal guidelines under Section 42 of the Internal Revenue Code, promoting the effective use of credits to address housing shortages.
The LIHTC program, established in 1986, provides incentives for private investment in affordable housing. State agencies allocate credits based on a per-capita formula, and Form 8610 is the mechanism for reporting these activities back to the federal government.
Who Must File IRS Form 8610?
Form 8610 is exclusively filed by state housing credit agencies (also known as allocating agencies or HCAs). These are typically state departments or quasi-public entities responsible for administering the LIHTC program within their jurisdiction. Examples include the California Tax Credit Allocation Committee or the New York State Division of Housing and Community Renewal.
Project owners, developers, or investors do not file this form directly. Instead, they receive Form 8609 from the agency, which certifies their eligibility for credits. The agency then aggregates and reports all such allocations via Form 8610.
If your organization is a state HCA, filing this form is mandatory for each calendar year in which credits are allocated, even if no new allocations were made.
When and How to File IRS Form 8610?
Form 8610 covers allocations made during the calendar year (January 1 to December 31) and must be filed annually. The due date is February 28 (or February 29 in leap years) of the following year. For example:
- For 2025 allocations, the form is due by February 28, 2026.
- Agencies should mail the completed form, along with attached Forms 8609 and Schedule A, to the IRS Service Center in Philadelphia, PA 19255-0549.
Electronic filing is not currently available for Form 8610; it must be submitted via paper mail. Agencies should retain copies of all submitted documents for their records.
In addition to allocation reporting, Form 8610 is used to report compliance monitoring activities, ensuring that projects maintain their low-income status throughout the 15-year compliance period.
Key Sections and How to Complete IRS Form 8610
Form 8610 is relatively straightforward but requires accurate data aggregation from the agency’s records. Here’s a high-level overview of its structure and key lines, based on the 2025 revision:
- Part I: Reconciliation of Forms 8609 Issued – Report the total number of Forms 8609 issued and the aggregate credit amount allocated.
- Part II: Reconciliation of Carryover Allocations – Summarize carryover amounts using attached Schedule A (Form 8610).
- Part III: Compliance Monitoring Reporting – Detail the agency’s activities in monitoring project compliance, as required under IRC Section 42.
Schedule A (Form 8610) is attached for each carryover allocation and includes details like the building identification number (BIN), allocation date, and credit amount. Carryovers must meet the 10% basis test by the end of the year to be valid.
When completing the form:
- Use the state’s population component to calculate the credit ceiling: For 2025, it’s the greater of $3.00 per capita or $3,455,000.
- Ensure all amounts are in whole dollars.
- Sign the form under penalties of perjury.
For detailed line-by-line guidance, refer to the specific instructions embedded in the form itself, as separate instruction booklets may not be available.
Penalties for Non-Compliance or Errors on Form 8610
Failing to file Form 8610 on time incurs a $100 penalty under IRC Section 6652(j). This is a flat fee per year, regardless of the number of underlying projects. Additionally:
- An inaccurate or incomplete form, even if filed timely, can result in another $100 penalty.
- Repeated non-compliance may lead to further IRS scrutiny, including audits of the agency’s allocation processes.
To avoid penalties, agencies should double-check all attachments and calculations before submission.
Recent Updates and Changes to Form 8610 in 2026
As of January 2026, the latest revision of Form 8610 is for the 2025 tax year, published on January 9, 2026. Key updates include adjustments to the state housing credit ceiling based on IRS Revenue Procedure 2025-32, which outlines 2026 volume caps.
There are no major structural changes reported, but agencies should monitor IRS announcements for any inflation adjustments or procedural tweaks. For instance, unused credits from prior years may be carried over via the National Pool, impacting state allocations.
Why Form 8610 Matters for Affordable Housing?
Form 8610 plays a crucial role in maintaining the integrity of the LIHTC program, which has financed over 3 million affordable housing units since its inception. By requiring detailed reporting, the IRS ensures that credits are used efficiently to support low-income communities. For agencies, timely filing not only avoids penalties but also demonstrates effective stewardship of federal resources.
If you’re involved in LIHTC administration, consult the official IRS Form 8610 PDF for the most current version. For personalized advice, contact a tax professional or your state’s housing agency.
This guide is based on trusted IRS sources and is intended for informational purposes. Always verify with the IRS for the latest requirements.