Building owner may correct housing credit period election

Plain-English summary

A building owner intended to begin a low-income housing building's ten-year credit period in the year after the building was placed in service. Its preparer instead checked “No” on line 10a of Form 8609, indicating that the period began in the placed-in-service year. The IRS found that the owner acted reasonably and in good faith and that relief would not prejudice the government. It granted 120 days to file an amended Form 8609 making the intended election under IRC § 42(f)(1). The owner must also file its federal returns, including Forms 8609-A and Schedules K-1, consistently for the placed-in-service year and later years. The ruling did not determine whether the building otherwise qualified for the low-income housing credit.

Ruling snapshot

• Question: May the building owner correct Form 8609 to begin the credit period in the year after the building entered service?
• Outcome: Approved, with 120 days to file the amended Form 8609
• Key authorities: IRC § 42(f), (l); Treas. Reg. §§ 1.42-1(h), 301.9100-1, 301.9100-3, 301.9100-8

Full text (IRS public release)

Internal Revenue Service Department of the Treasury
Washington, DC 20224

Number: 202540006 Third Party Communication: None
Release Date: 10/3/2025 Date of Communication: Not Applicable
Index Number: 42.00-00, 9100.00-00,
9100.01-00 Person To Contact:
--------------------, ID No. -----------------
----------------- Telephone Number:
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------------------------------------ Refer Reply To:
------------- CC:ECE:B01
---------------------------- PLR-107846-25
-------------------------------------- Date:
July 08, 2025
In Re: ------------------------------

LEGEND

Taxpayer = -----------------------------

Address = ----------------------------------------------------------------------------

BIN = -------------------

Year 1 = -------

Year 2 = -------

Dear ------------:

  This letter responds to your authorized representative’s letter dated March 28,

2025, and subsequent correspondence, submitted on behalf of Taxpayer, requesting an
extension of time, pursuant to §§ 301.9100-1 and 301.9100-3 of the Procedure and
Administration Regulations, to file an amended Form 8609, Low-Income Housing Credit
Allocation and Certification, with respect to the election related to § 42(f)(1) of the
Internal Revenue Code (Code).

   According to the information submitted and representations made, Taxpayer

owns and operates a building housing project located at Address. The building
identification number associated with the project is BIN. Taxpayer placed the project in
PLR-107846-25 2

service in Year 1. Taxpayer intended to start the credit period for the project in Year 2,
the year following the year the building was placed in service. However, the person
preparing Taxpayer’s Form 8609 inadvertently checked the “No” box on line 10a of the
Form 8609 for the building, thus erroneously indicating that the credit period for the
building was to begin in Year 1, the year the building was placed in service. After filing
the Form 8609 with the Internal Revenue Service, Taxpayer discovered the error.
Consistent with its intent, Taxpayer seeks an extension of time to make an election
under § 42(f)(1) to start the credit period for the building in Year 2.

   Section 42(f)(1) defines the credit period of any building as the period of 10

taxable years beginning with the taxable year in which the building is placed in service,
or at the taxpayer’s irrevocable election, the succeeding taxable year, but in either case
only if the building is a qualified low-income building at the close of the first year of the
credit period. The election, once made, is irrevocable.

  Section 301.9100-8(b) provides that the election under § 42(f)(1) generally must

be made for the taxable year in which the project is placed in service, or the succeeding
taxable year if the § 42(f)(1) election is made to defer the start of the credit period, and
must be made in the certification required to be filed pursuant to § 42(l)(1) and (2).

    Section 301.9100-8(a)(4)(i) provides that the election under § 42(f)(1) is

irrevocable. Specifically, the election under § 42(f)(1) is made pursuant to the
certification requirement of § 42(l)(1)(E), which provides that following the close of the
first taxable year in the credit period with respect to any qualified low-income building,
the taxpayer shall certify to the Secretary (at such time and in such form and in such
manner as the Secretary prescribes) such other information as the Secretary may
require.

  Section 1.42-1(h) of the Income Tax Regulations provides that a completed Form

8609, Low-Income Housing Credit Allocation and Certification, must be filed by the
building owner with the IRS. The requirements for completing and filing Form 8609 are
addressed in the instructions to the form. Completion of the relevant portions of Form
8609 satisfy the certification requirement of § 42(l)(1) and (2).

  The instructions to Form 8609 provide that the building owner must make a one-

time submission of Form 8609 to the Low-Income Housing Credit (LIHC) Unit at the IRS
Philadelphia campus. The building owner must file the original of the Form 8609 with
the LIHC Unit no later than the due date (including extensions) of its first tax return with
which it is filing Form 8609-A, Annual Statement for Low-Income Housing Credit.

  Sections 301.9100-1 through 301.9100-3 provide the standards the

Commissioner will use to determine whether to grant an extension of time to make an
election.
PLR-107846-25 3

  Section 301.9100-1(b) defines the term “regulatory election” as including an

election whose due date is prescribed by a regulation, revenue ruling, revenue
procedure, notice, or announcement published in the Internal Revenue Bulletin.

  Under § 301.9100-1(c), the Commissioner has discretion to grant a reasonable

extension of time under the rules set forth in §§ 301.9100-2 and 301.9100-3 to make a
regulatory election, or a statutory election (but no more than six months except in the
case of a taxpayer who is abroad), under all subtitles of the Code except subtitles E, G,
H, and I.

  Section 301.9100-2 provides automatic extensions of time for making certain

elections. Section 301.9100-3 provides extensions of time for making elections that do
not meet the requirements of § 301.9100-2.

  Requests for relief under § 301.9100-3(a) will be granted when the taxpayer

provides evidence to establish that the taxpayer acted reasonably and in good faith, and
the grant of relief will not prejudice the interests of the government.

   In the instant case, based solely on the facts submitted and the representations

made, we conclude that the requirements of §§ 301.9100-1 and 301.9100-3 have been
met. Accordingly, Taxpayer is granted an extension of time to make the § 42(f)(1)
election on Form 8609 to treat the credit period for the building located at Address and
identified by BIN, as beginning in Year 2. The election must be made by filing within
120 days from the date of this letter an amended Form 8609 that includes the intended
election. The amended Form 8609 (along with a copy of this letter) must be filed with
the LIHC Unit at the following address provided in the instructions to Form 8609:

                Department of the Treasury
                Internal Revenue Service Center
                Philadelphia, PA 19255-0549

   By making the election under § 42(f)(1) for the building identified by BIN,

Taxpayer is electing to begin the credit period for the building identified by BIN in Year

2. Accordingly, Taxpayer must file its Federal income tax returns, including the Forms
   8609-A and the Schedules K-1, for Year 1 and all subsequent years as is necessary to
   reflect the proper amount of § 42 credits.

   No opinion is expressed or implied regarding the application of any other
   provisions of the Code or regulations. Specifically, we express no opinion on whether
   the building identified by BIN otherwise qualifies for the low-income housing credit under
   § 42.

   The ruling contained in this letter is based on the information submitted and
   representations made by Taxpayer and accompanied by a penalty of perjury statement
   PLR-107846-25 4

executed by an appropriate party. While this office has not verified any of the material
submitted in support of the request for ruling, it is subject to verification on examination.

 This ruling is directed only to the taxpayer who requested it. Section 6110(k)(3)

provides that it may not be used or cited as precedent.

 In accordance with a power of attorney on file with this office, we are sending a

copy of this letter to Taxpayer’s authorized representative.
Sincerely,

                                                  Associate Chief Counsel
                                                  (Energy, Credits, and Excise Tax)



                                          By:
                                                  Dillon Taylor
                                                  Senior Technician Reviewer, Branch 1
                                                  Office of Associate Chief Counsel
                                                  (Energy, Credits, and Excise Tax)

Enclosure:
Copy for section 6110 purposes

cc:
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