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federalUnited StatesLow-Income Housing Tax Creditfinancial
The applicable fraction and eligible basis must be maintained
lihtc.basis.applicable_fraction_maintained · v1.0.0
A reduction in the applicable fraction or in eligible basis below the amounts on which the credit was computed reduces the allowable credit and, if it occurs during the compliance period, can trigger recapture.
- Confidence
- high
- Effective from
- 1990-01-01
- Last reviewed
- 2026-08-22
Evidence required
- IRS Form 8609(one_per_unit)
- Owner annual certification to the allocating agency(one_per_year)
Citations
All sources verified within 1 day- Internal Revenue Code Section 42 - Low-income housing credit42(c), 42(j)
- Form 8609, Low-Income Housing Credit Allocation and CertificationIRS Form 8609 and its instructions, Part II owner certification