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federalUnited StatesLow-Income Housing Tax Creditutility_allowance
Utility consumption estimates and their supporting data are part of the taxpayer's 1.6001-1(a) records
lihtc.ua.record_retention_of_consumption_estimates · v1.0.0
The building owner must retain any utility consumption estimates and supporting data as part of the taxpayer's records for purposes of 26 CFR 1.6001-1(a). That is a tax record-retention standard rather than a housing one: the records must be sufficient to establish the credit claimed and must be kept available for inspection so long as their contents may become material in administering the Code, which reaches beyond the compliance period. An allowance figure with no retained derivation behind it is treated by the IRS as an allowance that cannot be established at all.
Distinct from the section 42 compliance-monitoring retention in 1.42-5, which runs on the credit period plus six years. This one has no stated end date.
- Confidence
- high
- Effective from
- 2008-07-29
- Last reviewed
- 2026-08-31
Evidence required
- Utility allowance documentation(one_per_year)
Citations
All sources verified within 1 day- Utility allowances26 CFR 1.42-10(d)
- Guide for Completing Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance or Building DispositionPub. 5913 (1-2024), Category 11m, C(5)