What document outlines the conditions for tax credit allocation?

The document that outlines the conditions for tax credit allocation is IRS Form 8609. This form is specifically designed for entities engaged in the Low-Income Housing Tax Credit (LIHTC) program. It serves as the application for the allocation of tax credits and details essential information such as the amount of credit allocated, the project’s compliance with program requirements, and the allocation period for the credits.

This form is crucial for both taxpayers and state housing agencies as it provides the necessary framework to ensure that credits are distributed according to federal guidelines and that projects maintain compliance over the years. IRS Form 8823, while related to the reporting of noncompliance events for LIHTC, does not establish allocation conditions. IRS Form 1040 is an individual income tax return, and State Tax Guidelines, although useful for understanding local tax laws, do not specifically document the conditions for federal credit allocation in the same formal manner as Form 8609.