Low-income housing credit
Who is eligible?
You are entitled to this nonrefundable credit if you or your business:
- has a residential rental building in a low-income housing project that meets one of the minimum set-aside tests, and
- a signed and completed Form DTF-625, Low-Income Housing Credit Allocation and Certification, from the New York State Division of Housing and Community Renewal (DHCR) for each building for which you are claiming a credit for.
How much is the credit?
- The credit is a percentage of the building’s qualified basis and is allocated by the Commissioner of DHCR on Form DTF-625 (required).
- The credit is allowed each year for a 10-year period.
Is the credit transferable?
- For tax years beginning on or after January 1, 2019, Public Housing Law section 22(8)(a) allows a taxpayer (owner) of a building that received an allocation of low-income housing credit on or after May 12, 2018, to transfer the credit, in whole or in part, to another person or entity (transferee). Transfer of the credit will not affect the period for claiming the credit.
- A transferee may not transfer any portion of its credit.
- Transfer of the credit must be pre-authorized by DHCR. Any credit claimed without proper authorization for the transfer will be denied in full.
- Form DTF-624, Claim for Low-Income Housing Credit, and its instructions.
- Form DTF-625, Low-Income Housing Credit Allocation and Certification, and its instructions.
- Form DTF-625-ATT, Low-Income Housing Credit Annual Statement, and its instructions.