IRS Form 8609-A – Annual Statement for Low-Income Housing Credit

IRS Form 8609-A – If you own or manage a low-income housing property claiming the Low-Income Housing Tax Credit (LIHTC), IRS Form 8609-A (Annual Statement for Low-Income Housing Credit) is a critical annual filing requirement. This form helps building owners report ongoing compliance with Section 42 rules and calculate the exact credit amount for each tax year during the 15-year compliance period.

In this comprehensive guide, we cover everything you need to know: what Form 8609-A is, who must file it, step-by-step completion instructions based on the latest IRS Instructions for Form 8609-A (Rev. December 2025), common pitfalls, related forms, and filing tips. All information comes directly from official IRS sources, including the form PDF you referenced and the current instructions.

Examples of LIHTC-supported affordable housing developments that rely on proper Form 8609-A filing for credit claims.

What Is IRS Form 8609-A?

Form 8609-A is the annual statement owners use to:

  • Certify that the building continues to meet low-income housing requirements (qualified low-income project and units).
  • Calculate the allowable Low-Income Housing Credit for the tax year.
  • Report any changes in qualified basis that could trigger recapture.

It must be filed for each year of the 15-year compliance period (starting from the first year of the credit period). The form pairs with Form 8609 (Low-Income Housing Credit Allocation and Certification), which establishes the initial allocation and Building Identification Number (BIN).

Current versions (as of February 2026):

  • Form 8609-A: Rev. December 2008 (no recent changes to the form layout).
  • Instructions: Rev. December 2025 (includes updates such as a new subsection on Line 3 limitation due to Form 8609, line 3a).

Download the official form here: https://www.irs.gov/pub/irs-pdf/f8609a.pdf
Latest instructions: IRS.gov Form 8609-A Instructions

Who Must File Form 8609-A?

  • Building owners (individuals, partnerships, S corporations, estates, or trusts) claiming the LIHTC.
  • Pass-through entities complete the full Form 8609-A and attach it to their return; partners/shareholders/beneficiaries receive their share via Schedule K-1 and file only Form 8586.
  • A separate Form 8609-A is required for:
    • Each building.
    • Acquisition credits vs. rehabilitation expenditures (treated as a new building under Section 42(e)).

Key requirement: You must have a properly completed, signed original (or copy) of Form 8609 (Parts I and II) from the state housing credit agency. Without it, the credit can be disallowed.

When and How to File Form 8609-A?

  • Due date: Attach to your federal income tax return (or the pass-through entity’s return) for each tax year in the 15-year compliance period.
  • First filing: Often coincides with the year you first claim the credit on Form 8586.
  • Electronic or paper: Follow your tax software or mail with your return. No separate mailing to IRS unless required for the original Form 8609 (sent once to the LIHC Unit in Philadelphia).

Recordkeeping: Keep copies of Form 8609, all 8609-A forms, Form 8586, and any recapture forms (8611) for at least 3 years after the 15-year compliance period ends.

Form 8609 vs. Form 8609-A: Key Differences

Aspect Form 8609 Form 8609-A
Purpose One-time allocation & certification by agency & owner Annual compliance & credit calculation
Filing Frequency Once (with first 8609-A) Every year for 15 years
Who Completes Agency (Part I) + Owner (Part II) Owner only
Key Output BIN, credit amount, placed-in-service date Annual credit amount for Form 8586

Step-by-Step: How to Complete IRS Form 8609-A?

Part I – Compliance Information (Certification)

  • Item A: Building Identification Number (BIN) from Form 8609, Part I, Item E.
  • Item B: Check the box for “newly constructed or existing building” or “section 42(e) rehabilitation expenditures.”
  • Item C: Certify you have the required Form 8609. Check “Yes” or stop (credit disallowed).
  • Item D: Did the building qualify as part of a qualified low-income project and meet Section 42 requirements at year-end? “No” → see Form 8611 for possible recapture.
  • Item E: Was there a decrease in qualified basis? “Yes” → calculate reduction and check for recapture.

Stop here and do not complete Part II if the project fails compliance or credit is fully claimed in prior years (typically after year 11).

Part II – Computation of Credit

Line 1: Eligible basis (from Form 8609, line 7; adjustments for high-cost areas or federal subsidies apply per instructions).

Line 2: Low-income portion (smaller of unit fraction or floor space fraction, carried to 4+ decimal places). Special first-year modified percentage rules apply.

Line 3: Qualified basis = Line 1 × Line 2. Limited to the maximum qualified basis on Form 8609 line 3a. Can be zero if minimum set-aside (20-50, 40-60, or average income test) or deep rent skewed test is violated.

Line 4: Part-year adjustment for acquisition or disposition (days owned / 365 × qualified basis). Special rules for pass-through entities and ownership changes.

Line 5: Applicable credit percentage (from Form 8609 line 2; minimum 4% or 9% floors apply in many post-2008/2020 cases; reductions for later federal subsidies).

Line 6: Tentative credit (Line 3 or 4 × Line 5).

Lines 7–12 (Additions to qualified basis only):

  • Line 7: Additional qualified basis (increase in low-income units/floor space after first year).
  • Use reduced credit percentage (⅔ of original).
  • Line 11 uses a special worksheet for modified percentage on the increase.
  • Line 12: Total additions credit (after Line 11 adjustment).

Line 13: Credit before federal grant reduction (Line 6 minus Line 12).

Line 14: Reduction for federal grants (or costs financed by federal grants).

Line 15: Allowable credit for the building (Line 13 – Line 14, but not more than Form 8609 Part I line 1b allocation).

Line 16: Your proportionate share (for pass-through entities).

Line 17: Deferred first-year credit (any reduction from first-year modified percentage, claimable in year 11).

Line 18: Total credit for this Form 8609-A → enter on Form 8586.

Recapture Note: Any decrease in qualified basis or non-compliance triggers Form 8611. Special rules apply for dispositions before/after July 31, 2008, and COVID-era emergency housing (Notices 2021-12, 2022-5).

Common Mistakes to Avoid

  • Missing the original signed Form 8609.
  • Incorrect low-income fraction calculation (unit vs. floor space).
  • Forgetting part-year proration on ownership changes.
  • Overlooking federal grant reductions on Line 14.
  • Failing to file a separate 8609-A for rehab expenditures.
  • Not tracking additions to qualified basis properly.

Pro Tip: Use tax software that supports LIHTC (many enterprise packages auto-populate from prior-year data). Always cross-check against the physical Form 8609.

  • Form 8609 — Initial allocation.
  • Form 8586 — Claim the credit on your return.
  • Form 8611 — Recapture of credit.
  • Form 8610 — Filed by housing agencies (not owners).

Frequently Asked Questions (FAQs)

Q: How long do I file Form 8609-A?
A: Every year for the full 15-year compliance period, even if the 10-year credit period has ended.

Q: What if I sell the building?
A: Seller provides copy of completed Form 8609 to buyer. Disposition may trigger recapture unless the building continues qualifying (post-2008 rules are more lenient if reasonable expectation of continued compliance).

Q: Are there any 2025/2026 updates?
A: The December 2025 instructions added clarification on Line 3 limitation and reference updated COVID relief notices. Check IRS.gov/Form8609A for future developments.

Q: Do I need a new Form 8609 every year?
A: No — one Form 8609 per building (or per allocation type) is sufficient for the entire compliance period.

Final Advice

Properly completing and filing IRS Form 8609-A ensures you maximize your Low-Income Housing Tax Credit while staying compliant and avoiding costly recapture. Because LIHTC rules are complex and fact-specific (especially with basis adjustments, federal subsidies, and ownership changes), consult a tax professional experienced in affordable housing or your state housing credit agency.

For the most current information, always refer to:

Stay compliant, claim what you’ve earned, and continue providing vital affordable housing through the LIHTC program.

Last updated February 2026 based on IRS publications available as of that date. Tax laws can change; verify with IRS.gov or a qualified advisor for your specific situation.