8609-A Annual Statement for Low-Income Housing Credit

Form

8609-A

OMB No. 1545-0988

Annual Statement for Low-Income Housing Credit

(Rev. December 2007)
Department of the Treasury
Internal Revenue Service

©

Name(s) shown on return

Part I

Attachment
Sequence No.

File with owner’s federal income tax return.

36

Identifying number

Compliance Information
Yes No

A
B

©

Building identification number (BIN)
This Form 8609-A is for (check the box)
section 42(e) rehabilitation expenditures

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a newly constructed or existing building

C

Do you have in your records the original Form 8609 (or a copy thereof) signed and issued by the housing credit
agency for the building in A?
If “No,” see the instructions and stop here—do not go to Part II.
D Did the building in A qualify as a part of a qualified low-income housing project and meet the requirements of
section 42 as of the end of the tax year for which this form is being filed?
If “No,” see the instructions and stop here—do not go to Part II.
E Was there a decrease in the qualified basis of the building in A for the tax year for which this form is being
filed?
If “Yes,” see the instructions. If “No,” and the entire credit has been claimed in prior tax years, stop here—do
not go to Part II.
Computation of Credit
Part II
1
1 Eligible basis of building
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

Low-income portion (smaller of unit fraction or floor space fraction) (if first year of the credit
period, see instructions)
Qualified basis of low-income building. Multiply line 1 by line 2 (see instructions for exceptions)
Part-year adjustment for disposition or acquisition during the tax year
Credit percentage
Multiply line 3 or line 4 by the percentage on line 5
Additions to qualified basis, if any
Part-year adjustment for disposition or acquisition during the tax year
Credit percentage. Enter one-third of the percentage on line 5
Multiply line 7 or line 8 by the percentage on line 9
Section 42(f)(3)(B) modification
Add lines 10 and 11
Credit for building before line 14 reduction. Subtract line 12 from line 6
Disallowed credit due to federal grants (see instructions)
Credit allowed for building for tax year. Subtract line 14 from line 13, but do not enter more than
the amount shown on Form 8609, Part I, line 1b
Taxpayer’s proportionate share of credit for the year (see instructions)
Adjustments for deferred first-year credit (see instructions)
Taxpayer’s credit. Combine lines 16 and 17. Enter here and on Form 8586

General Instructions
Section references are to the Internal
Revenue Code unless otherwise noted.
Note. Some of the line numbers on the
December 1988, March 1991, and November
2003 revisions of Form 8609, Low-Income
Housing Credit Allocation Certification, and
December 2005, December 2006, and
December 2007 revisions of Form 8609,
Low-Income Housing Credit Allocation and
Certification, differ from other revisions. In
these cases, the line references are shown in
parentheses in these instructions.

Purpose of Form
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. After 2004, 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 you on Schedule K-1.

For Paperwork Reduction Act Notice, see instructions.

Cat No. 38841T

2
3
4
5
6
7
8
9
10
11
12
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14

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15
16
17
18

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.

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.

Form 8609-A (Rev. 12-2007)

Form 8609-A (Rev. 12-2007)

Specific 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.
Caution. Any building owner claiming a credit
without receiving a completed Form 8609 that
is signed and dated by an authorized official of
the housing credit agency and submitting the
completed Form 8609 (Part I and Part 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.

Part II—Computation of Credit
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 7b (Part II, line 1b, on the
1988 and 1991 revisions; line 7 on the 2003,
2005, 2006, and 2007 revisions).
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)(C).
Gulf Opportunity (GO) Zone, Rita GO Zone,
and Wilma GO Zone. The housing credit agency
may increase the eligible basis of buildings in
these specific zones if the buildings receive
allocations in 2006, 2007, or 2008 and the
buildings are placed in service during the period
beginning on January 1, 2006, and ending on
December 31, 2010. See section 1400N(c)(3) for
more information. See Pub. 4492, Information for
Taxpayers Affected by Hurricanes Katrina, Rita,
and Wilma, for a list of the counties and parishes
in these specific zones.
For revisions of Form 8609 beginning in
1991, the agency shows the increased
percentage of the eligible basis in Part I, line
3b. The eligible basis entered on Form 8609
should reflect the percentage increase.
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. The amount of eligible
basis entered on Form 8609 does not include

Page

2

the cost of land, the amount of any federal
grant received for the building during the first
year of the credit period, or any portion of a
building’s adjusted basis for which an election
was made prior to November 5, 1990, under
section 167(k). 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 7b (Part II, line 1b, on the 1988 and 1991
revisions; line 7 on the 2003, 2005, 2006, and
2007 revisions).

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 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 lowincome 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.

● The deep rent skewed test (15-40 test)
elected for the project on Form 8609, line 10d
(Part II, line 5c, on the 1988 revision; Part II,
line 5d, on the 1991 revision), 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 national
nonmetropolitan median gross income, when
applicable).

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 .1250 on line 2 ([.5 1 .5 1 .5]
4 12 = .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.
Because the first year credit is not
determined solely by reference to the qualified
basis at the close of the year, any

Line 3. Generally, multiply line 1 by line 2 to
figure the portion of the eligible basis of the
building attributable to the low-income
residential rental units.
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 (Part II,
line 5c, on the 1991 and earlier revisions), is
not met, or the entire building is out of
compliance with the requirements under
section 42.

● You disposed of the building or your entire
interest therein during the tax year. If you did
not post a bond or pledge securities under
section 42(j)(6), 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, regardless of
whether or not the seller posted a bond or
pledged securities.
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).
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
posted a bond or pledged securities under
section 42(j)(6), 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.

Form 8609-A (Rev. 12-2007)

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.

Page

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 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 (Part II, line 2a, on the
1988 and 1991 revisions)) 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.
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.

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.

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 in the
line 4 instructions; and, wherever line 3 and
line 4 are referenced, substitute line 7 and
line 8, respectively.

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 carried out to at least four places
(for example, 8.13% would be shown on line 5
as .0813).
Note. If you were allocated a 70% present value
credit percentage for a building that was not
federally subsidized 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)(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. See section 42(i)(2).
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 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 .0813, one-third of that
percentage would be expressed as .0271).
See section 42(f)(3).

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.

Pass-through entities. If the building is
owned by a pass-through entity, see
Pass-through entities in the line 4 instructions;
and, wherever line 4 is referenced, substitute
line 8 instead.

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 taxable year. To
determine this adjustment amount, complete
the worksheet on page 4.

3

Line 14. The eligible basis on line 1 must be
reduced by the amount of any federal grant
for the building, or the operation thereof,
during the 15-year compliance period. If this
reduction does not apply because this is the
first year of the credit period (line 1 already
reflects the reduction) or no federal grant is
received, enter zero on line 14. Otherwise,
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. Express the result
as a decimal carried out to at least four
places.
Note. If the eligible basis on line 1 of this
Form 8609-A was increased by a percentage
allowable under section 42(d)(5)(C) (and
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.
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.

Form 8609-A (Rev. 12-2007)

Page

Special rules. If a taxpayer is subject to
recapture because of failure to post a bond
or pledge securities upon the disposition of a
building or interest therein (see De minimis
recapture rule, later), no credit is allowed to
the taxpayer for that 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. 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 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 post a bond or pledge
securities, 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 posts a bond or pledges
securities upon the disposition of the
building or an interest therein, 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
posting a bond or pledging securities, 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 posts a bond or pledges
securities 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 posts a bond or
pledges securities, 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 Service 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 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.
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 on page 2.
If this is the 11th year, enter .8750 times
the eligible basis of the building (line 1)
times the credit percentage (line 5). The

factor .8750 is 1.0000 minus .1250, the
modified percentage figured for year one in
the example.
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: 7 hr., 38 min., Learning
about the law or the form: 1 hr., 47 min.,
Preparing and sending the form to the
IRS: 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.

Line 11 Worksheet (Keep for Your Records)
1
2

Enter the qualified basis of the building from line 3 of this tax year’s Form 8609-A
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 (Part II, line 2a
on the 1988 and 1991 revisions), 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. Instead, enter
-0- on line 11 of Form 8609-A and go to line 12.

4

5
6
7

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 .5000 remained at .5000 for the
first 9 months of this tax year and then increased to .7500 for October, November, and December,
then subtract .5000 from .7500 to get an increase of .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, .2500 1 .2500 1 .2500 = .7500, divided by 12 = .0625.))
Increased qualified basis entitled to reduced credit. Multiply line 4 above by Form 8609-A, line 1
Increased qualified basis not entitled to reduced credit. Subtract line 5 above from line 3 above
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

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