Section 42; Low-Income Housing Credit

Internal Revenue Service Department of the Treasury
Washington, DC 20224
Number: 202540006
Release Date: 10/3/2025
Index Number: 42.00-00, 9100.00-00,
9100.01-00
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In Re: ---
Third Party Communication: None
Date of Communication: Not Applicable
Person To Contact:
---, ID No. ---
Telephone Number:
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Refer Reply To:
CC:ECE:B01
PLR-107846-25
Date:
July 08, 2025
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 onetime 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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