As you may be aware, Section 42 of the Internal Revenue Code has been amended to allow income averaging for tenants of low income housing tax credit properties under certain circumstances.
Projects that have already completed form 8609 are not eligible to use income averaging. IFA has determined
NOT
to allow income averaging for LIHTC projects awarded credits
prior to the 2019 round
.
Accordingly you should not select income averaging on the newly revised form 8609 for any project currently under development. Selecting the income averaging option on the revised form 8609 for Iowa projects allocated tax credits prior to 2019 could have negative consequences under future qualified allocation plans.
