U.S. Income Tax Return for Estates and Trusts

Instructions for Form 8609-A (Rev. December 2025)

U.S. Income Tax Return for Estates and Trusts

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TREASURY/IRS AND OMB USE ONLY DRAFT

Instructions for Form 8609-A
(Rev. December 2025)

Annual Statement for Low-Income Housing Credit
Section references are to the Internal Revenue Code unless
otherwise noted.

on the rules for posting or pledging, see Rev. Rul. 90-6,0 1990-2
C.B. 3, and Rev. Proc. 99-11, 1991-1 C.B. 275.

Future Developments

Note: You may discontinue maintaining a bond or pledging
eligible U.S. Treasury securities by making the election
described in Rev. Proc. 2008-60, 2008-43 I.R.B. 1006, and if it is
reasonably expected that the building will continue to be
operated as a qualified low-income building for the remainder of
the building’s compliance period. See Rev. Proc. 2008-60 for the
details on making the election.
Building dispositions after July 30, 2008. Disposing of a
building or an interest therein will generate a credit recapture,
unless it is reasonably expected that the building will continue to
be operated as a qualified low-income building for the remainder
of the building’s compliance period.
See section 42(j) and Notice 2021-12, section IV.D, as
amended by Notice 2022-5, section IV.D for more information.

For the latest information about developments related to Form
8609-A and its instructions, such as legislation enacted after
they were published, go to IRS.gov/Form8609A.

What’s New
Line 3. We added a new subsection: Limitation due to Form
8609, line 3a, computation.

General Instructions
Form 8609-A is filed by a building owner to report compliance
with the low-income housing provisions and calculate the
low-income housing credit. Form 8609-A must be filed by the
building owner for each year of the 15-year compliance period.
File one Form 8609-A for the allocation(s) for the acquisition of
an existing building and a separate Form 8609-A for the
allocation(s) for rehabilitation expenditures.
If the building owner is a partnership, S corporation, estate, or
trust (pass-through entity), the entity will complete Form 8609
and Form 8609-A. The entity will attach Form 8609-A to its tax
return. If you are a partner, shareholder, or beneficiary in the
pass-through entity that owns the building, file only Form 8586,
Low-Income Housing Credit, to claim the credit using the
information that the entity furnishes to you on Schedule K-1.

Recapture of Credit

If the qualified basis of the building has decreased from the
qualified basis at the close of the previous tax year, you may
have to recapture parts of the credits allowed in previous years.
See Form 8611, Recapture of Low-Income Housing Credit.
If the close of the first year of the credit period with

TIP respect to a building is on or after April 1, 2020, and

Sep 26, 2025

Sale of Building

Upon a change of ownership, the seller should give the new
owner a copy of the Form 8609 (Parts I and II complete). This
form allows the new owner to substantiate the credit.

Specific Instructions
Item and Line Instructions
Part I—Compliance Information
Item A. Enter the building identification number (BIN) from Part
I, item E, of Form 8609.
Item B. You need to file one Form 8609-A for a newly
constructed or existing building. You need to file a separate Form
8609-A for section 42(e) rehabilitation expenditures because
such expenditures are treated as creating a new building.
Item C. In order to claim the credit, you must have an original,
signed Form 8609 (or copy thereof) issued by a housing credit
agency assigning a BIN for the building. This applies even if no
allocation is required (as in the case of a building financed with
tax-exempt bonds). Check “Yes” to certify that you have the
required Form 8609 in your records.
Any building owner claiming a credit without receiving a
completed Form 8609 that is signed and dated by an
CAUTION authorized official of the housing credit agency and
submitting the completed Form 8609 (Parts I and II) to the IRS is
subject to having the credit disallowed.

Item D. If “No,” stop here and see Form 8611 to find out if you
have to recapture part of the credit allowed in prior years.
Item E. If “Yes,” see the instructions for line 2 to figure the
reduced qualified basis. Also, see Form 8611 to find out if you
have to recapture part of the credit allowed in prior years.
If “No,” and the entire credit has been claimed in prior tax
years (generally, this can occur after the 11th year for which the
credit has been claimed for the building), do not complete Part II.

Instructions for Form 8609-A (Rev. 12-2025) Catalog Number 52335U
Department of the Treasury Internal Revenue Service www.irs.gov

DRAFT

Purpose of Form

TREASURY/IRS AND OMB USE ONLY DRAFT
Part II—Computation of Credit

Note: This increase cannot cause the credit on line 15 to
exceed the credit amount allocated on line 1b, Part I, of Form
8609.
Basis reductions for buildings placed in service before
July 31, 2008. The amount of eligible basis entered on Form
8609 does not include the cost of land or the amount of any
federal grant received for the building during the first year of the
credit period. Do not reduce the eligible basis on line 1 by the
amounts of any federal grants received after the first year of the
credit period. The calculation for line 14 will reduce the credit by
the amount of any federal grants received during the compliance
period that did not reduce the eligible basis during the first year
of the credit period.
For more details on determining eligible basis, see the
instructions for Form 8609, line 7.
Basis reductions for buildings placed in service after
July 30, 2008. The amount of eligible basis entered on Form
8609 does not include the cost of land or the amount of any
costs financed with the proceeds of a federally funded grant. Do
not reduce the eligible basis on line 1 by the amounts of any
federal grants received after the first year of the credit period.
The calculation for line 14 will reduce the credit for any costs
financed with the proceeds of a federal grant.
For more details on determining eligible basis, see the
instructions for Form 8609, line 7.
Line 2. Only the portion of the basis on line 1 attributable to the
low-income rental units in the building at the close of the tax year
qualifies for the credit. This is the smaller of the fractional
amount of low-income units to all residential rental units (the “unit
fraction”) or the fractional amount of floor space of the
low-income units to the floor space of all residential rental units
(the “floor space fraction”). This fraction must be shown on line 2
as a decimal carried out to at least four places (for example,
50/100 = .5000). Low-income units are units occupied by
qualifying tenants, while residential rental units are all units,
whether or not occupied.
Generally, a unit is not treated as a low-income unit unless it
is suitable for occupancy, used other than on a transient basis,
and occupied by qualifying tenants. Section 42(i)(3) provides for
certain exceptions (for example, units that provide transitional
housing for the homeless may qualify as low-income units). See
section 42(i)(3) for more details. Also, see section 42(g)(2)(D)
regarding the available unit rule and Regulations section
1.42-5(c)(1)(ix) regarding the vacant unit rule.
If individuals are medical personnel or other essential workers
(as defined by state or local governments) who provided
services during the COVID-19 pandemic, then, for purposes of
emergency housing provided from April 1, 2020, to December
31, 2022, owners of low-income housing projects may treat
these individuals as if they were “displaced individuals.” That is,
owners could have provided emergency housing for these
individuals during this period pursuant to the provisions of Rev.
Proc. 2014-49, 2014-37 I.R.B 535 (at IRS.gov/pub/irs-drop/
rp-14-49.pdf), and Rev. Proc. 2014-50, 2014-37 I.R.B. 540 (at
2

If the close of the first year of the credit period with

TIP respect to a building is on or after April 1, 2020, and

before 2023, then, for purposes of section 42(f)(3)(A)(ii),
the qualified basis for the building for the first year of the credit
period is calculated by taking into account any increase in the
number of low-income units by the close of the 6-month period
following the close of that first year. See Notice 2021-12,
section IV.E, as clarified by Notice 2021-17, and as amended by
Notice 2022-5, section IV.E.
Because the first-year credit is not determined solely by
reference to the qualified basis at the close of the year, any
reduction in credit resulting from the application of the first-year
adjustment may be claimed in the 11th year. See the instructions
for line 17.
Line 3. Generally, the qualified basis of the low-income building
(the amount on line 3) is the product of lines 1 and 2. It is the
portion of the eligible basis of the building attributable to the
low-income residential rental units.
Limitation due to Form 8609, line 3a, computation. In
figuring the maximum qualified basis on Form 8609, line 3a, the
housing credit agency may have used only the amount of eligible
basis necessary to result in a qualified basis that, when
multiplied by the credit percentage on Form 8609, line 2, equals
the credit amount on Form 8609, line 1b. If that is the case, then
Form 8609-A, line 3, is limited to the maximum qualified basis
shown on Form 8609, line 3a.
Imputed qualified basis of zero. However, the qualified
basis of the building (line 3) is zero if any of the following
conditions apply.
• The minimum set-aside requirement elected for the project on
Form 8609, line 10c, is not met, or the entire building is out of
compliance with the requirements under section 42.
• The deep rent skewed test (15-40 test) elected for the project
on Form 8609, line 10d, is violated. The 15-40 test is not an
additional test for satisfying the minimum set-aside requirements
of section 42(g)(1). The 15-40 test is an election that relates to
the determination of a low-income tenant’s income. If this test is
elected, at least 15% of all low-income units in the project must
be occupied at all times during the compliance period by tenants
whose income is 40% or less of the area median gross income
(or, when applicable, national non-metropolitan median gross
income or national non-metropolitan median income).
Instructions for Form 8609-A (Rev. 12-2025)

DRAFT

Line 1. Generally, the eligible basis of a building for its entire
15-year compliance period is the amount of eligible basis
entered on Form 8609, line 7.
Basis increases for buildings in certain high-cost areas.
In order to increase the credit for buildings in certain high-cost
areas, the housing credit agency may increase the eligible basis
of buildings located in these areas (after adjustments, if any, for
federal subsidies and grants). The agency may make this
increase under the high-cost area provisions of section 42(d)(5)
(B). For buildings placed in service before July 31, 2008, the
high-cost area provisions under former section 42(d)(5)(C) apply.

IRS.gov/pub/irs-drop/rp-14-50.pdf), as applicable. See Notice
2021-12, section V.E, as amended by Notice 2022-5,
section V.E.
If you dispose of the building, or your entire interest in the
building, before the close of the tax year, the low-income portion
must be determined on the date you disposed of the building. If
you dispose of less than your entire interest in the building, the
low-income portion must be determined at the close of the tax
year.
First-year modified percentage. For the first year of the
credit period, you must use a modified percentage on line 2 to
reflect the average portion of a 12-month period that the units in
a building were occupied by low-income individuals. Figure the
low-income portion as of the end of each full month that the
building was in service during the year. Add these percentages
together and divide by 12. Enter the result on line 2. For
example, if a building was in service for the last 3 full months of
your tax year, and was half occupied by low-income tenants as
of the end of each of those 3 months, then assuming the smaller
fractional amount was the unit fraction, you would enter 0.1250
on line 2 ([0.5 + 0.5 + 0.5] / 12 = 0.1250).
This first-year adjustment does not affect the amount of
qualified basis on which the credit is claimed in the next 9 tax
years. In general, the credit is claimed in those years by
reference to the qualified basis at the close of each tax year.

TREASURY/IRS AND OMB USE ONLY DRAFT

• You disposed of the building or your entire interest therein
during the tax year and did not follow the procedures (described
earlier under Recapture and building dispositions) to prevent
recapture. In addition to using an imputed basis of zero on line 3,
you may have to recapture a portion of credits previously taken.
File Form 8611 to figure and report the recaptured amount. This
paragraph affects only those taxpayers who dispose of the
building or their entire interest therein. Those acquiring the
building (or any interest therein) are not affected and, if the
minimum set-aside requirements are otherwise satisfied, they
may take a credit for the fraction of the year the building is owned
by them.

Line 4. If you owned the building (or an interest therein) for the
entire year, enter zero on line 4 and go to line 5.
Disposal of building or interest therein. If you disposed of
a building or your entire interest therein during the tax year and
you followed the procedures (described earlier under Recapture
and building dispositions) to continue to claim the credit, you
may claim a credit based only on the number of days during the
tax year for which you owned the building or an interest therein.
Similarly, if you previously had no interest in the building, but
you acquired the building or an interest therein during the tax
year, you may claim a credit based only on the number of days
during the tax year for which you owned the building or an
interest therein.
The owner who has owned the building for the longest period
during the month in which the change in ownership occurs is
deemed to have owned the building for that month. If the seller
and new owner have owned the building for the same amount of
time during the month of disposition, the seller is deemed to
have owned the building for that month.
Example. Both the buyer and the seller are calendar-year
taxpayers. The sale takes place on May 25 of a 365-day
calendar year. The qualified basis of the low-income building is
$20,000. The seller and buyer will each complete a separate
Form 8609-A and enter $20,000 on line 3.
In this situation, the seller is deemed to have owned the
building for all 31 days of May. Therefore, the seller owned the
building for 151 days of the 365-day tax year, and the buyer
owned the building for the remaining 214 days. The seller will
multiply $20,000 by 151/365 to get $8,274. The seller will enter
$8,274 on line 4 of his Form 8609-A. The buyer will multiply
$20,000 by 214/365 to get $11,726. The buyer will enter $11,726
on line 4 of her Form 8609-A.
Pass-through entities. If the building is owned by a
pass-through entity, the entity does not need to make any
adjustment on line 4, unless the entity either disposes of the
building or its entire interest therein, or acquires the building or
an interest therein during the tax year (and the entity previously
had no interest in the building). Do not make an adjustment on
line 4 for changes in the interests of the members of the
pass-through entity during the tax year. Instead, the entity must
reflect these changes in the amount of credit it passes through to
its members.

A minimum applicable credit percentage of:

CAUTION

• 4% is in effect for new federally subsidized buildings, and for

existing buildings, placed into service after 2020. For the
minimum 4% rate to apply, a building must also receive an
allocation of housing credit dollar amount after 2020 or have a
portion of the building financed with an obligation described in
section 42(h)(4)(A) that is issued after 2020. If these
circumstances apply, don’t enter less than 4% on line 2. See
section 42(b)(3) and the Taxpayer Certainty and Disaster Tax
Relief Act of 2020, section 201. But see the Note next.
• 9% is in effect for new non-federally subsidized buildings
placed in service after July 30, 2008. The 9% minimum applies
to new non-federally subsidized buildings even if the taxpayer
made an irrevocable election under former section 42(b)(1)(A)
(ii). If this circumstance applies, don’t enter less than 9% on
line 2. See section 42(b)(2).

Note: As a result of Rev. Rul. 2021-20 (at IRS.gov/pub/irs-drop/
rr-21-20.pdf), as clarified by Rev. Proc. 2021-43 (at IRS.gov/pub/
irs-drop/rp-21-43.pdf), the 4% floor in section 42(b)(3) does not
apply to:
• A building that is financed in part with a draw-down exempt
facility bond issue that was issued in 2020 and on which one or
more draws are taken after 2020;
• A building that is financed in part with proceeds of an exempt
facility bond issue that was issued in 2020 and in part with
proceeds of a different exempt facility bond issue that was
issued in a minimal amount after 2020; or
• A building that receives an allocation of housing credit dollar
amount in 2020 and a minimal additional allocation after 2020.
Line 6. If you owned the building, or had an interest therein, for
the entire tax year, multiply line 3 by line 5. If you had no
ownership interest in the building for a portion of the tax year,
multiply line 4 by line 5.

Line 5. If the agency has made an allocation on Form 8609,
enter on line 5 the credit percentage shown on Form 8609, Part I,
line 2. This percentage must be shown on line 5 as a decimal
Instructions for Form 8609-A (Rev. 12-2025)

DRAFT

Note: If the qualified basis of the building is zero, or if the
building has an imputed qualified basis of zero, you may not
claim a credit for the building for the tax year. You must enter
zero on lines 3 and 16, and skip lines 4 through 15, 17, and 18.
At-risk limitation for individuals and closely held
corporations. The basis of property may be limited if you
borrowed against the property and are protected against loss, or
if you borrowed money from a person who has other than a
creditor interest in the property. See section 42(k).

carried out to at least four places (for example, 8.13% would be
shown on line 5 as 0.0813).
Buildings placed in service before July 31, 2008. If you
were allocated a 70% present value credit percentage for a
building that was not federally subsidized (as defined on the date
the building was placed in service) and the building later
receives a federal subsidy, your credit percentage is reduced to
the 30% present value credit that was in effect during the month
the building was placed in service or for the month elected under
former section 42(b)(2)(A)(ii), whichever applies. The 30%
present value credit applies to the building for the year the
federal subsidy was received and for the remainder of the
compliance period, whether or not the federal subsidy is repaid.
For the definition of federal subsidy that was in effect before July
31, 2008, see section 42(i)(2) (as in effect before July 31, 2008).
Buildings placed in service after July 30, 2008. If you
were allocated a 70% present value credit percentage for a
building that was not federally subsidized (as defined on the date
the building was placed in service) and the building later
receives a federal subsidy, your credit percentage is reduced to
the 30% present value credit that was in effect during the month
the building was placed in service or for the month elected under
section 42(b)(1)(A)(ii), whichever applies. The 30% present
value credit applies to the building for the year the federal
subsidy was received and for the remainder of the compliance
period, whether or not the federal subsidy is repaid. For the
definition of federal subsidy that was in effect after July 30, 2008,
see section 42(i)(2) (as in effect after July 30, 2008).

TREASURY/IRS AND OMB USE ONLY DRAFT
Lines 7 Through 12
If you are not claiming a credit for additions to qualified basis on
line 7, skip lines 7 through 12 and go to line 13.

CAUTION

You may claim a credit for an addition to qualified basis
only if the credit amounts have been allocated by the
housing credit agency to cover these additions.

Line 8. The determinations and calculations you make on line 8
follow the instructions for line 4. Therefore, if you owned the
building (or an interest therein) for the entire year, enter zero on
line 8 and go to line 9.
Disposal of building or interest therein. If you disposed of
a building or your entire interest therein during the tax year, see
Disposal of building or interest therein under Line 4, earlier; and,
wherever line 3 and line 4 are referenced, substitute line 7 and
line 8, respectively.
Pass-through entities. If the building is owned by a
pass-through entity, see Pass-through entities under Line 4,
earlier; and, wherever line 4 is referenced, substitute line 8
instead.
Line 9. The credit for additions to the building’s qualified basis is
determined using two-thirds of the credit percentage allowable
for the building’s original qualified basis. Therefore, one-third of
the credit percentage (expressed as a decimal carried out to at
least four places) on line 5 is not allowed. Enter on line 9
one-third of the amount shown on line 5. This amount must be
reported on line 9 as a decimal carried out to at least four places
(for example, if the credit percentage entered on line 5 is 0.0813,
one-third of that percentage would be expressed as 0.0271).
See section 42(f)(3).
Line 10. If you owned the building, or had an interest therein, for
the entire tax year, multiply line 7 by line 9. If you had no
ownership interest in the building for a portion of the tax year,
multiply line 8 by line 9.
Line 11. Additions to qualified basis must be adjusted to reflect
the average portion of the year that the low-income units relating
to the increase were occupied. This adjustment is required if the
increase in qualified basis of the building exceeds the qualified
basis (including additions to qualified basis) of the building in any
prior tax year. To determine this adjustment amount, complete
the Line 11 Worksheet at the end of these instructions.

Lines 13 Through 18
Line 13. If you are not claiming a credit for additions to qualified
basis on line 7, skip lines 7 through 12 and enter the amount
from line 6 on line 13.
Line 14. The eligible basis on line 1 must be reduced by federal
grants received. If a reduction does not apply because this is the
first year of the credit period (line 1 already reflects the reduction
4

Note: If the eligible basis on line 1 of this Form 8609-A was
increased by a percentage allowable under section 42(d)(5)(B)
(former section 42(d)(5)(C) for buildings placed in service before
July 31, 2008), and the increased percentage is reflected on
line 3b of Form 8609, then increase the total amount of all
federal grants in Step 1 by this percentage increase and divide
this amount by the eligible basis on line 1 of this Form 8609-A.
For example, if the percentage increase is 130% and all federal
grants total $11,000, multiply $11,000 by 1.3000 and divide the
result ($14,300) by the eligible basis on line 1.
Step 2. Multiply the decimal amount determined in Step 1 by
the credit on line 13. Enter this result on line 14.
Line 16. To determine the amount to enter on line 16, see the
information that follows in (1), (2), (3), and Special rules, later.
1. If the building is owned completely by one taxpayer, enter
the line 15 credit (after adjustment for any applicable special rule
below) on line 16.
2. If the building is owned by more than one taxpayer, and
those taxpayers are not members of a pass-through entity, then
the line 15 credit (after adjustment for any applicable special rule
below) must be distributed according to each taxpayer's
respective ownership interest in the building. For example, if a
building is owned by individuals A and B (60% by A and 40% by
B), each would complete a separate Part II as follows. Lines 1
through 15 would be the same for each, assuming no part-year
adjustments are necessary. However, A would enter 60% of
line 15 on line 16, and B would enter 40% of line 15 on line 16.
Therefore, enter on line 16 your share of the line 15 credit for the
building that relates to your interest in the building. If your
interest increases or decreases during the tax year, the change
must be taken into account in determining your share of the
line 15 credit.
Note: The aggregate credit claimed by the owners of the
building cannot exceed the line 15 credit amount for the building.
3. If a pass-through entity is completing Form 8609-A as the
sole owner of the building, enter the line 15 credit (after
adjustment for any applicable special rule below) on line 16.
Special rules. If a taxpayer is subject to recapture upon the
disposition of a building or interest therein because the taxpayer
did not follow the procedures (described earlier under Recapture
and building dispositions) to prevent recapture, no credit is
allowed to the taxpayer for that percentage of the interest
disposed of by the taxpayer. (However, see De minimis
recapture rule, later.) The credit allowed to the taxpayer for the
tax year is determined by reference to the taxpayer’s remaining
interest in the building at the close of the tax year. For example,
assume that a taxpayer owns 100% of a building for 273 days in
a 365-day calendar tax year and 40% of the building for the
Instructions for Form 8609-A (Rev. 12-2025)

DRAFT

Line 7. An addition to qualified basis results when there is an
increase in the number of low-income units or an increase in the
floor space of the low-income units over that which existed at the
close of the first year of the credit period (before application of
the modified percentage calculation). Credits for an addition to
qualified basis are claimed at the reduced credit percentage of
two-thirds of the credit percentage (expressed as a decimal
carried out to at least four places) on line 5 through the end of
the 15-year compliance period.
If you are claiming a credit for additions to qualified basis, you
must subtract the original qualified basis of the building at the
close of the first year of the credit period (see Form 8609,
line 8a) from the building’s qualified basis entered on line 3.
Enter the result on line 7. If the result is zero or less, skip lines 8
through 12 and enter the credit from line 6 on line 13.

or noninclusion of a federal grant), or no federal grant was
received, enter zero on line 14. Otherwise, follow the instructions
that apply for the date the building was placed in service.
Buildings placed in service before July 31, 2008.
Reduce the eligible basis on line 1 by the amount of any federal
grant for the building, or the operation thereof, received during
the 15-year compliance period.
Buildings placed in service after July 30, 2008. Reduce
the eligible basis on line 1 by the amount of any costs financed
by the proceeds of a federal grant.
Regardless of the date the building was placed in service,
figure the reduction as follows.
Step 1. Divide the total amount of all federal grants received
for the building during the compliance period that did not already
reduce the amount of the eligible basis (reported on line 1) by
the eligible basis on line 1 of this Form 8609-A. Enter the result
as a decimal carried out to at least four places.

remaining 92 days in the tax year (the taxpayer disposed of a
60% interest on the last day of September). If the taxpayer does
not follow the procedures to prevent recapture, the taxpayer’s
credit on line 16 would be based on 40% of the line 15 credit for
the building. Similarly, although a taxpayer might not be subject
to recapture upon a disposition of a de minimis portion
(explained later) of the taxpayer’s interest in the building, no
credit is allowed to the taxpayer for the percentage of the interest
disposed of by the taxpayer. The credit allowed to the taxpayer
for the tax year is determined by reference to the taxpayer’s
remaining interest in the building at the close of the tax year.
If the taxpayer follows the procedures to prevent recapture,
the taxpayer is allowed credit for the year both with respect to the
ownership interest disposed of by the taxpayer and the interest
retained by the taxpayer. For example, again assume that a
taxpayer owns 100% of a building for the first 273 days in a
365-day calendar tax year and 40% of the building for the last 92
days of the year. After following procedures, the taxpayer’s credit
on line 16 would be based upon 273/365 of 100% (or 74.79%) of
the line 15 credit for the building plus 92/365 of 40% (or 10.08%)
of the line 15 credit amount.
If a taxpayer follows the procedures to prevent recapture upon
the disposition of the building or upon a disposition of the
taxpayer’s entire interest in the building, the taxpayer’s line 16
credit amount is determined by multiplying the line 15 credit
amount by the percentage interest in the building disposed of by
the taxpayer. For example, if a building is owned by individuals A
and B (60% by A and 40% by B) and on the last day of the fifth
month of the tax year, C buys A’s 60% interest in the building and
A follows the procedures, then A would enter 60% of line 15 on
line 16. (Lines 4 and 8 have already taken into account the 5
months of the tax year that A held an interest in the building.)
De minimis recapture rule. For administrative purposes, the
IRS has adopted a de minimis rule that applies to partners in
partnerships (other than partnerships to which section 42(j)(5)
(B) applies) owning interests in qualified low-income buildings.
The rule allows a partner to elect to avoid or defer recapture
resulting from a disposition of interest in a partnership without
posting bond (in a situation where it was necessary to post bond
to avoid or defer recapture) until the partner has disposed of
more than 331/3% of the partner’s greatest total interest in the
qualified low-income building through the partnership. See Rev.
Rul. 90-60, 1990-2 C.B. 3, for more information on the de
minimis rule.
Upon application by the building owner, the IRS may waive
any recapture of the low-income housing credit for any de
minimis error in complying with the minimum set-aside
requirements.

Instructions for Form 8609-A (Rev. 12-2025)

Line 17. The first-year credit may have been reduced based on
the number of full months the building was in service. The
deferred balance of the credit for the first year is allowed in the
11th year. Include it on line 17 as a positive amount.
For example, see the example under First-year modified
percentage, earlier. If this is the 11th year, enter 0.8750 times the
eligible basis of the building (line 1) times the credit percentage
(line 5). The factor 0.8750 is 1.0000 minus 0.1250, the modified
percentage figured for year 1 in the example.
Line 18. Report this amount on line 3 of Form 8586. For
buildings placed in service after December 31, 2007, the credit
is not limited by the alternative minimum tax rules.
Paperwork Reduction Act Notice. We ask for the information
on these forms to carry out the Internal Revenue laws of the
United States. You are required to give us the information. We
need it to ensure that you are complying with these laws and to
allow us to figure and collect the right amount of tax.
You are not required to provide the information requested on
a form that is subject to the Paperwork Reduction Act unless the
form displays a valid OMB control number. Books or records
relating to a form or its instructions must be retained as long as
their contents may become material in the administration of any
Internal Revenue law. Generally, tax returns and return
information are confidential, as required by section 6103.
The time needed to complete and file this form will vary
depending on individual circumstances. The estimated burden
for individual taxpayers filing this form is approved under OMB
control number 1545-0074 and is included in the estimates
shown in the instructions for their individual income tax return.
The estimated burden for all other taxpayers who file this form is:
Recordkeeping . . . . . . . . . . . . . . . . .
Learning about the law or the form . . . . .
Preparing and sending the form to the IRS

. . . .
. . . .
. . . .

7 hr., 38 min.
1 hr., 47 min.
1 hr., 59 min.

If you have comments concerning the accuracy of these time
estimates or suggestions for making this form simpler, we would
be happy to hear from you. You can write to the Internal Revenue
Service at the address listed in the instructions for the tax return
with which this form is filed.

DRAFT

TREASURY/IRS AND OMB USE ONLY DRAFT

TREASURY/IRS AND OMB USE ONLY DRAFT
Line 11 Worksheet (Keep for Your Records)
1

2 Multiply the amount on line 1 of the previous year’s Form 8609-A by the amount on line 2 of that Form 8609-A . . . . . . . . . . . . .

3 Increased qualified basis. Subtract line 2 above from line 1 above. But if line 2 above is more than zero but less than the original
qualified basis of the building entered on Form 8609, line 8a, then enter the amount from line 7 of this Form 8609-A instead.
Note. If line 3 above is zero or less, do not complete the rest of this worksheet. Enter -0- on line 11 of Form 8609-A . . . . . . . . .

4 Modified percentage. For each month during the tax year, figure the increase, if any, in the low-income portion of the building for
that month over the low-income portion of the building at the close of the previous tax year (the amount on line 2 of the previous tax
year’s Form 8609-A). For example, if the previous tax year’s low-income portion of 0.5000 remained at 0.5000 for the first 9 months
of this tax year and then increased to 0.7500 for October, November, and December, then subtract 0.5000 from 0.7500 to get an
increase of 0.2500 for each month. Add these amounts together, divide by 12, and enter the result. (This amount must be shown
as a decimal carried out to at least four places (for example, 0.2500 + 0.2500 + 0.2500 = 0.7500, divided by 12 =
0.0625.)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5 Increased qualified basis entitled to reduced credit. Multiply line 4 above by Form 8609-A, line 1 . . . . . . . . . . . . . . . . . . . . . .

6 Increased qualified basis not entitled to reduced credit. Subtract line 5 above from line 3 above . . . . . . . . . . . . . . . . . . . . . . .

7 Line 11 modification. Multiply line 6 above by two-thirds of the amount on line 5 of Form 8609-A. Enter the result here and on
line 11 of Form 8609-A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

DRAFT

1 Enter the qualified basis of the building from line 3 of this tax year’s Form 8609-A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Instructions for Form 8609-A (Rev. 12-2025)

File Type	application/pdf
File Title	Instructions for Form 8609-A (Rev. December 2025)
Subject	Instructions for Form 8609-A, Annual Statement for Low-Income Housing Credit
Author	C:DC:TS:CAR:MP
File Modified	2025-09-26
File Created	2025-09-26