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federalUnited StatesLow-Income Housing Tax Creditincome_eligibility
Household income at initial occupancy must not exceed the applicable limit
lihtc.income.initial_eligibility · v1.0.0
A unit qualifies as a low-income unit only if the household's annual income, determined at initial occupancy under the Section 8 income definition, is at or below the income limitation applicable to that unit's designation for the household's actual size.
LIHTC eligibility uses ANNUAL income, not adjusted income. Applying the Section 8 deductions here is a common and material error.
- Confidence
- high
- Effective from
- 1990-01-01
- Last reviewed
- 2026-08-22
Evidence required
- Tenant Income Certification(exactly_one)
- Third-party employment verification(one_per_income_source)
- Asset verification(one_per_asset)
- Published income and rent limit schedule in effect(exactly_one)
Citations
All sources verified within 1 day- Internal Revenue Code Section 42 - Low-income housing credit42(g)(1), 42(g)(4)
- Section 8 and Public Housing - Occupancy Requirements, Income and Family Payment5.609
- Guide for Completing Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance or Building DispositionChapter IV, 11a - Household Income Above Income Limit Upon Initial Occupancy, section A. Definition, printed p. 48