The 2024 Instructions for Low-Income Housing Tax Credit Allocation and Certification are the booklet from the District of Columbia Office of Tax and Revenue (OTR) that explains how owners of eligible rental projects document the DC Low-Income Housing Tax Credit (DC LIHTC) and how credit holders report transfers and claim it. The booklet contains Form D-8609, District of Columbia Low-Income Housing Tax Credit Allocation and Certification. It serves building owners, credit transferors and credit recipients (transferees). On this page you can fill out the form online on FillingPDF and download or print the completed PDF; the booklet and the procedures belong to OTR.
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What is D-8609?
The 2024 Instructions for Low-Income Housing Tax Credit Allocation and Certification are the District of Columbia Office of Tax and Revenue (OTR) booklet that shows how to view available DC LIHTC, report credit transfers and claim the credit. It contains Form D-8609.
Form D-8609, District of Columbia Low-Income Housing Tax Credit Allocation and Certification, is completed by the building owners of an eligible project and signed by an authorized official of the Department of Housing and Community Development (DHCD). It has Part IA, Credit, a section marked to be completed by DHCD, and Part IB, Owner Certification.
The DC Low-Income Housing Tax Credit rests on D.C. Law 23-149, §7201, and D.C. Law 25-550, §2161. An eligible project is a District rental development with more than 5 housing units, with units affordable at no more than 80% of the median family income in the Washington Metropolitan Statistical Area. The credit applies against income tax, franchise tax and insurance premium tax, is claimed in equal parts over 10 years or 120 months, and is not refundable. Unused credit can be carried forward to the remaining subsequent years of the 10-year period.
The booklet also covers registration with OTR, the MyTax.DC.gov walk-through for viewing credit and entering transfers, sales, assignments and allocations, and the return lines for claiming the credit. It is separate from federal Form 8609A, Annual Statement for Low-Income Housing Credit, a copy of which accompanies the D-8609 filing.
Who needs to file D-8609?
Building owners of an eligible project that qualifies for the DC LIHTC complete Form D-8609, obtain the DHCD eligibility statement and submit the executed form to OTR.
Other parties use the booklet as follows:
- Credit transferors (owners, transferees, purchasers, assignees or taxpayers holding credit) who want to transfer, sell, assign or allocate all or part of it report the amount and the recipient to OTR through MyTax.DC.gov.
- Credit recipients (transferees) can see and claim their credit only after the transferor has entered the transaction.
- Partnerships, LLCs, S corporations and other pass-through entities may allocate credit to partners, members or shareholders under their agreement.
- Insurance companies outside DC that use the credit for insurance premium tax filed with the DC Department of Insurance, Securities and Banking (DISB) must still be registered with OTR, as a Nonresident LIHTC Recipient.
All parties, including owners, transferors and transferees, must be registered with OTR and have a MyTax.DC.gov username. The credit cannot be taken against tax dedicated to the Healthy DC and Health Care Expansion Fund. Credit routed to DISB is tracked by DISB and does not appear in OTR's tracking system.
When to file D-8609
The triggering event is the DHCD signature: once an authorized DHCD official has signed Form D-8609, the building owners provide the executed form and its supporting copies to OTR. The booklet prints no calendar due date for this step.
No credit may be claimed on a District tax return for a given year until the appropriate information has been submitted to OTR. A transferor must enter each transfer, sale, assignment or allocation on its MyTax.DC.gov account before the recipient can see its portion. Before filing a return that claims the credit, log in and check the available amount; claiming more than the available amount may result in denial of the credit for that year.
The credit is spread equally over 10 years or 120 months, and a project cannot qualify for DC LIHTC for more than 11 taxable years, with the exceptions the booklet describes.
Documents you need
- Copy of the executed Form D-8609, signed by an authorized DHCD official, sent to OTR by building owners at initial filing.
- Copy of the eligibility letter issued by DHCD, sent to OTR with the executed D-8609.
- Copy of federal Form 8609A, Annual Statement for Low-Income Housing Credit, sent to OTR with the executed D-8609.
- Copy of the executed D-8609 for each credit recipient, when any part of the credit is transferred, sold, assigned or allocated.
- Taxpayer ID number (FEIN or SSN) and name of the credit recipient, exactly as registered with OTR, needed to enter a transfer.
- NAIC number, only if the recipient will use the credit for insurance premium tax filed with DISB.
- Documentation supporting the transfer, uploaded with "Add Attachment"; for an allocation, the screen asks for certain information as an attachment.
- Summary of credit transfer, attached to the insurance premium tax return when claiming with DISB.
How to fill out D-8609
Register with OTR and MyTax.DC.gov
All parties must be registered with OTR using Form FR-500 at MyTax.DC.gov, then sign up for a username. A transferee with no DC tax nexus registers as a Nonresident LIHTC Recipient and enters the project's Building ID Number (BIN) first.
Obtain the DHCD eligibility letter
The owner of an eligible project must get an eligibility statement from DHCD. Contact DHCD at (202) 442-7200 for the approval process.
Enter building and owner details
Form D-8609 asks for the building address (line 1), building owner name (2a) and address (2b), owner taxpayer ID (3) and federal Building Identification Number (4).
Review the credit section for DHCD
Part IA, Credit, is marked as the section to be completed by DHCD. It carries the maximum allowable credit (line 5), allocation date (6), placed-in-service date (7), the election box (8), the amount for each of the 10 credit years and the signature of the authorized DHCD official.
Complete the owner certification
In Part IB, indicate whether the building's qualified basis decreased for the tax year, then sign, enter the taxpayer ID number and date, and print the name. The certification is made under penalties of perjury.
Send the filing package to OTR
Email the executed D-8609, the DHCD eligibility letter and federal Form 8609A to [email protected]. Give each credit recipient a copy of the executed D-8609.
Check your credit in MyTax.DC.gov
Log in, click "More…" and select "View Your DC LIHTC Credit Information." The schedule is organized by BIN and shows the Claimed, Allocated/Transferred and Available columns.
Enter transfers or allocations
Transferors select "Allocate/Transfer Your DC LIHTC Credit," enter the recipient exactly as registered, answer the insurance premium question, enter the amount and add attachments such as the executed D-8609.
Verify and submit the transaction
Review the summary, click "Submit" and enter your password. If the recipient is an insurance company, give it the printed summary to file with DISB.
Claim the credit on your return
Enter the amount on D-40 Schedule U Line 5, D-41 Line 16, D-20 Schedule UB Line 8 or D-30 Schedule UB Line 19, and do not exceed the tax due.
Review, sign and download the PDF
Check every entry on Form D-8609, then download or print the completed PDF from FillingPDF and send it through the channels described under How to submit.
How to submit D-8609
The instructions use three channels: email to OTR for the initial filing, the MyTax.DC.gov portal for transfers and credit information, and the District tax return or DISB filing for claiming.
- Email to OTR: send a copy of the executed D-8609, a copy of the DHCD eligibility letter and a copy of federal Form 8609A to [email protected]. Give a copy of the executed D-8609 to every credit recipient.
- MyTax.DC.gov: register with OTR (Form FR-500, available at MyTax.DC.gov), sign up for a username, then use "More…" and the "Low-Income Housing Tax Credit" panel to view credit or to select "Allocate/Transfer Your DC LIHTC Credit." Attachments such as an executed D-8609 can be uploaded; after you submit, you cannot modify the transaction and must contact OTR.
- Claiming with OTR: enter the credit on D-40 Schedule U Line 5, D-41 Line 16, D-20 Schedule UB Line 8 or D-30 Schedule UB Line 19.
- Claiming with DISB: attach the summary of credit transfer to the insurance premium tax return.
Help: OTR e-Services Call Center at (202) 759-1946, 9:00 a.m. to 4:00 p.m., Monday through Friday (for Form FR-500 and MyTax.DC.gov sign-up); [email protected]; or a web message under "More…" in your MyTax account. DHCD answers project approval questions at (202) 442-7200.
FillingPDF lets you fill out and download the PDF; submission follows the channels above.
Common mistakes to avoid
- Claiming DC LIHTC on a District return before the information has been submitted to OTR; no credit may be claimed until it has.
- Claiming more credit than the available amount shown in MyTax.DC.gov, which may result in denial of the credit for the year.
- Entering the transferee as a "Business" with a trade name when its ID type is an SSN; select "Individual" and enter first and last name.
- Entering a transferee ID or name different from the one registered with OTR; more than three errors lock you out for 60 minutes.
- Answering the insurance premium question incorrectly; "Yes" requires an FEIN and the NAIC number, and sends the credit to DISB, not OTR.
- Clicking "Submit" on a transfer without verifying the transferee and amount; the transaction cannot be modified afterward.
- Letting claimed non-refundable credits exceed the tax due instead of adjusting the DC LIHTC on the claim line.
- Not giving credit recipients a copy of the executed D-8609 when credit is transferred, sold, assigned or allocated.
- Looking for DISB-bound credit in OTR's tracking system; it does not appear there, so contact DISB to confirm the amount.
Frequently asked questions
What is Form D-8609 for DC LIHTC?
Form D-8609, District of Columbia Low-Income Housing Tax Credit Allocation and Certification, is completed by building owners of an eligible project and signed by an authorized DHCD official. The executed form goes to OTR with the DHCD eligibility letter and a copy of federal Form 8609A.
Can the DC LIHTC be used against DC property tax?
The booklet says the DC LIHTC can be taken against income tax, franchise tax and insurance premium tax; it does not list property tax. It also cannot be taken against tax dedicated to the Healthy DC and Health Care Expansion Fund.
How do I transfer or allocate DC LIHTC to another party?
Log in to MyTax.DC.gov, click "More…" and select "Allocate/Transfer Your DC LIHTC Credit." Enter the recipient exactly as registered with OTR, the amount and any attachments, then submit. The recipient sees the credit only after you enter it.
Which lines do I use to claim the DC LIHTC?
Use D-40 Schedule U Line 5, D-41 Line 16, D-20 Schedule UB Line 8 or D-30 Schedule UB Line 19. The credit is non-refundable, so total non-refundable credits should not exceed the tax due; adjust the DC LIHTC if they would.
Do I need to register with OTR if I don't pay DC taxes?
Yes. Even without DC nexus, you must be registered with OTR for your credit to be recorded. OTR offers a registration as a Nonresident LIHTC Recipient, which also gives a MyTax.DC.gov login; you enter the project's BIN before you start.
Is the DC LIHTC refundable, and can I carry it forward?
It is not refundable. Any amount above the tax due for a taxable year can be carried forward to any of the 10 remaining subsequent taxable years. The credit is claimed equally over 10 years or 120 months.
What if my credit amount in MyTax.DC.gov looks wrong?
Contact your credit transferor first, because transferors report allocations and transfers to you. If you are the building owner, contact the OTR LIHTC team at [email protected] or through a web message in your MyTax account.
Can I fill out Form D-8609 online on FillingPDF?
Yes. FillingPDF lets you fill out the PDF online and download or print it. FillingPDF is an independent service, not affiliated with OTR, and does not file or send anything; you submit the form to OTR by the channels in the instructions.
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