Partnership may correct housing-credit start-year elections

Plain-English summary

A partnership intended to begin the ten-year low-income housing credit period for several buildings in the year after they were placed in service. It filed Forms 8609 but inadvertently failed to make the required elections under IRC § 42(f)(1). The IRS found that the partnership met the standards for regulatory-election relief under Treas. Reg. §§ 301.9100-1 and 301.9100-3. It granted 120 days to file amended Forms 8609 checking the correct box for the later start year. The partnership must also file its returns, Forms 8609-A, and Schedules K-1 consistently, and the ruling does not decide whether the buildings otherwise qualify for the credit.

Ruling snapshot

• Question: May the partnership amend Forms 8609 to elect the intended later start of the low-income housing credit periods?
• Outcome: Approved, with amended Forms 8609 due within 120 days
• Key authorities: IRC §§ 42(f)(1), 42(l)(1), 42(l)(2); Treas. Reg. §§ 1.42-1(h), 301.9100-1, 301.9100-3, 301.9100-8

Full text (IRS public release)

Internal Revenue Service Department of the Treasury
Washington, DC 20224

Number: 202537003 Third Party Communication: None
Release Date: 9/12/2025 Date of Communication: Not Applicable
Index Number: 9100.01-00, 42.00-00
Person To Contact:
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---------------------------- Refer Reply To:
CC:ECE:B01
In Re: PLR-105401-25
--------------------------- Date:
June 17, 2025

LEGEND

Taxpayer = ----------------------------------------------------------------------------------------------
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Year 1 = ------------------------------------------------------
Year 2 = ------------------------------------------------------
BINs = ----------------------------------------------------------------------------------------------
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Dear --------------:

This letter responds to Taxpayer’s authorized representative’s letter dated February 27,
2025, submitted on behalf of Taxpayer, requesting an extension of time to make
elections under § 42(f)(1) of the Internal Revenue Code pursuant to § 301.9100-1 and
§ 301.9100-3 of the Procedure and Administration Regulations, to file amended Forms
8609, Low-Income Housing Credit Allocation and Certification, with respect to elections
under § 42(f)(1) of the Internal Revenue Code made for certain buildings in a housing
project intended to be a low-income housing project under § 42.

According to the information submitted and representations made, Taxpayer, a
partnership for federal income tax purposes, placed the buildings identified by BINs in
service in Year 1. Taxpayer intended, as reflected by contemporaneous and other
documents, to begin the credit period for the buildings identified by BINs in Year 2.
However, Taxpayer inadvertently failed to make timely elections under § 42(f)(1) to
begin the credit period for the buildings identified by BINs in Year 2. After filing the

PLR-105401-25 2

Forms 8609 with the Internal Revenue Service, Taxpayer discovered the inadvertent
error.

Section 42(f)(1) defines the credit period of any building as the period of 10 taxable
years beginning with the taxable year in which the building is placed in service, or at the
taxpayer’s irrevocable election, the succeeding taxable year, but in either case only if
the building is a qualified low-income building at the close of the first year of the credit
period.

Section 301.9100-8(b) provides that the election under § 42(f)(1) generally must be
made for the taxable year in which the project is placed in service, or the succeeding
taxable year if the § 42(f)(1) election is made to defer the start of the credit period, and
must be made in the certification required to be filed pursuant to § 42(l)(1) and (2).

Section 301.9100-8(a)(4)(i) provides that the election under § 42(f)(1) is irrevocable.
Specifically, the election under § 42(f)(1) is made pursuant to the certification
requirement of § 42(l)(1)(E), which provides that following the close of the first taxable
year in the credit period with respect to any qualified low-income building, the taxpayer
shall certify to the Secretary (at such time and in such form and in such manner as the
Secretary prescribes) such other information as the Secretary may require.

Section 1.42-1(h) of the Income Tax Regulations provides that a completed Form 8609,
Low-Income Housing Credit Allocation and Certification, must be filed by the building
owner with the IRS. The requirements for completing and filing Form 8609 are
addressed in the instructions to the form. Completion of the relevant portions of Form
8609 satisfy the certification requirement of § 42(l)(1) and (2).

The instructions to Form 8609 provide that the building owner must make a one-time
submission of Form 8609 to the Low-Income Housing Credit (LIHC) Unit at the IRS
Philadelphia campus. The building owner must file the original of the Form 8609 with
the LIHC Unit no later than the due date (including extensions) of its first tax return with
which it is filing Form 8609-A, Annual Statement for Low-Income Housing Credit.

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 a regulation, revenue ruling, revenue procedure,
notice, or announcement published in the Internal Revenue Bulletin.

PLR-105401-25 3

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 subtitles 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 the
grant of relief will not prejudice the interests of the government.

In the instant case, based solely on the facts submitted and the 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 file amended Forms 8609 for
the buildings identified by BINs for the sole purpose of checking the correct box on line
10a of the form to begin the credit period for the buildings in Year 2. The amended
Forms 8609 must be filed within 120 days from the date of this letter. The amended
Forms 8609 (along with a copy of this letter) must be filed with the LIHC Unit at the
following address provided in the instructions to Form 8609:

                 Department of the Treasury
                 Internal Revenue Service Center
                 Philadelphia, PA 19255-0549

By making the election under § 42(f)(1) for the buildings identified by BINs, Taxpayer is
electing to begin the credit period for the buildings identified by BINs in Year 2.
Accordingly, Taxpayer must file its Federal income tax returns, including the Forms
8609-A and the Schedules K-1, for Year 1 and all subsequent years as is necessary to
reflect the proper amount of § 42 credits.

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 buildings
identified by BINs otherwise qualify for the low-income housing credit under § 42.

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

The ruling contained in this letter is based on the information submitted and
representations made by Taxpayer and accompanied by a penalty of perjury statement
executed by an appropriate party. While this office has not verified any of the material
submitted in support of the request for ruling, it is subject to verification on examination.

PLR-105401-25 4

In accordance with the provisions of a Power of Attorney currently on file with this office,
a copy of this letter is being sent to Taxpayer’s authorized representatives.

                                              Sincerely,

                                              Associate Chief Counsel
                                              (Energy, Credits, & Excise Tax)

                                               /s/ Dillon J. Taylor

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

Enclosure:
Copy for § 6110 purposes

CC:

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