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federalUnited StatesLow-Income Housing Tax Creditaffordability_period

Compliance must be maintained throughout the fifteen-year compliance period

lihtc.compliance_period.recapture_exposure · v1.0.0

The compliance period for each building is fifteen taxable years beginning with the first year of the credit period. Noncompliance during that period exposes the taxpayer to recapture of accelerated credit; noncompliance after it, during the extended use period, is enforced through the recorded agreement rather than through recapture.

Materially changes how a finding should be reported. In the extended use period the state agency still files Form 8823 for many categories, but recapture is generally no longer the exposure.
Confidence
high
Effective from
1990-01-01
Last reviewed
2026-08-22

Citations

All sources verified within 1 day
  • Internal Revenue Code Section 42 - Low-income housing credit
    42(i)(1), 42(j)
    statuteSource ↗verified 1d ago