LIHTC annual income is determined consistently with Section 8, through the chain section 42(g)(4) to section 142(d)(2)(B) to 24 CFR 5.609

lihtc.income_calculation.section_8_definition_governs_through_142d · v1.0.0

Section 42 does not define income. It borrows one, and the chain matters because each link is somewhere a practitioner can lose it. IRC 42(g)(4) applies paragraphs (2) — other than subparagraph (A) — (3), (4), (5), (6) and (7) of IRC 142(d) for the purpose of determining whether a project is a qualified low-income housing project and whether a unit is a low-income unit. The excluded subparagraph is (A), so subparagraph (B) IS incorporated, and 142(d)(2)(B)(i) provides that the income of individuals and area median gross income are determined in a manner consistent with determinations of lower income families under section 8 of the United States Housing Act of 1937. The section 8 determination is made under 24 CFR 5.609. So a LIHTC income determination is a 24 CFR 5.609 determination, and when 5.609 changes — as HOTMA changed it — the LIHTC determination changes with it unless the Service or the allocating agency says otherwise.

Confidence

high

Effective from

1987-01-01

Last reviewed

2026-09-05