Late multiple-building housing credit election allowed

Plain-English summary

A low-income housing taxpayer intended to treat all buildings in a project as one multiple-building project but inadvertently omitted the election from Forms 8609. The IRS found that the taxpayer met the regulatory relief standards. It granted 120 days to file amended Forms 8609 and accompanying information statements making the section 42(g)(3)(D) election. The ruling does not decide whether the original forms were timely or correct, how the election affects closed years, or whether the buildings otherwise qualify for low-income housing credits.

Ruling snapshot

• Question: May the taxpayer make a late election to treat all project buildings as a single multiple-building project?
• Outcome: Approved, with 120 days to file amended Forms 8609
• Key authorities: IRC § 42(g)(3)(D); Treas. Reg. §§ 1.42-1(h) and 301.9100-1 through 301.9100-3

Full text (IRS public release)

Internal Revenue Service Department of the Treasury
Washington, DC 20224

Number: 202520008 Third Party Communication: None
Release Date: 5/16/2025 Date of Communication: Not Applicable
Index Number: 42.00-00, 9100.00-00,
9100.01-00 Person To Contact:
--------------------------, ID No. ----------------
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------------------------------------------------------------ Telephone Number:
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---------------------------------------------------------- Refer Reply To:
------------------------------- CC:ECE:B1
PLR-114864-24
Date:
February 19, 2025

LEGEND

Taxpayer = -------------------------------------------------

---------------------------------------------

Project = ---------------------------------------

BINs = -----------------------------------------------

N= -----

Agency = -----------------------------------------------------------------------

Dear -----------------:

This letter responds to Taxpayer’s authorized representative’s letter dated August 9,
2024, and subsequent correspondence, requesting an extension of time pursuant to
§ 301.9100-1 of the Procedure and Administration Regulations to elect to treat all of the
buildings in Project identified by BINs as part of a single, multiple-building project under
§ 42(g)(3)(D) of the Internal Revenue Code on Taxpayer’s IRS Forms 8609, Low-
Income Housing Credit Allocation and Certification.

According to information submitted, Taxpayer intended that Project consist of N
buildings identified by BINs. Taxpayer, through inadvertence, failed to elect to treat all N
buildings in Project identified by BINs for which Forms 8609 were issued by Agency as
part of a single, multiple-building project under § 42(g)(3)(D).

PLR-114864-24 2

Section 42(g)(3)(D) provides that a project will consist of only one building unless, prior
to the end of the first calendar year in the project period (as defined in § 42(h)(1)(F)(ii)),
each building that will comprise the project is identified in the form and the manner that
the Secretary provides.

Section 42(l)(1) sets forth the certifications for the first year of the credit period
regarding any qualified low-income building that a taxpayer must certify to the Secretary
(at such time and in such manner as the Secretary prescribes). Section 1.42-1(h) of the
Income Tax Regulations requires that a building owner (i.e., taxpayer) must file a
completed Form 8609 with the Service in accordance with the form instructions. The
election to treat under § 42(g)(3)(D) a building as part of a multiple-building project is
made on Part II of Form 8609 and requires the inclusion of an accompanying
informational statement.

Sections 301.9100-1 through 301.9100-3 provide the standards the Commissioner will
use to determine whether to grant an extension of time to make an election.
Section 301.9100-1(b) defines the term “regulatory election” as including an election
whose due date is prescribed by regulation published in the Federal Register, or a
revenue ruling, revenue procedure, notice, or announcement published in the Internal
Revenue Bulletin.

Under § 301.9100-1(c), the Commissioner has discretion to grant a reasonable
extension of time under the rules set forth in §§ 301.9100-2 and 301.9100-3 to make a
regulatory election, or a statutory election (but no more than six months except in the
case of a taxpayer who is abroad), under all subtitles of the Code, except E, G, H, and I.
Section 301.9100-2 provides automatic extensions of time for making certain elections.
Section 301.9100-3 provides extensions of time for making elections that do not meet
the requirements of § 301.9100-2.

Requests for relief under § 301.9100-3(a) will be granted when the taxpayer provides
evidence to establish that the taxpayer acted reasonably and in good faith and that
granting relief will not prejudice the interests of the government.

In the instant case, based solely on Taxpayer’s facts submitted and its representations
made, we conclude that the requirements of §§ 301.9100-1 and 301.9100-3 have been
met. Accordingly, Taxpayer is granted an extension of time to elect to treat under
§ 42(g)(3)(D) all N buildings in Project identified by BINs as part of a single, multiple-
building project by filing within 120 days from the date of this letter amended Forms
8609, and accompanying information statement(s), that include this intended election.
The amended Forms 8609 and statement(s) (along with a copy of this letter) are to be
filed with the Philadelphia Service Center at the address provided for the Service Center
in that form. A copy of this letter is enclosed for this purpose.

No opinion is expressed or implied regarding the application of any other provisions of
the Code or regulations. Specifically, we express no opinion on whether the Forms

PLR-114864-24 3

8609 for the N buildings in Project identified by BINs were timely or correctly filed, the
effect of Taxpayer’s election to treat under § 42(g)(3)(D) the N buildings as a single,
multiple-building project for any closed year, or whether the N buildings in Project
otherwise qualify for low-income housing credits under § 42.

This ruling is directed only to the taxpayer requesting it. Section 6110(k)(3) of the Code
provides that it may not be used or cited as precedent.

In accordance with the Power of Attorney on file with this office, a copy of this letter is
being sent to your authorized representative.

                                            Sincerely,


                                            Associate Chief Counsel
                                            (Energy, Credits & Excise Tax)


                                            By:_________________________
                                            Dillon J. Taylor
                                            Senior Counsel, Branch 1
                                            Office of Associate Chief Counsel
                                            (Energy, Credits and Excise Tax)

Enclosure
Copy for section § 6110 purposes

cc: ---------------------------------------------
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