Housing Tax Credits
Housing Tax Credit Process
How Does it Work?
Housing tax credits are a way of encouraging developers to create affordable housing. In return for setting aside a percentage of units in your rental development for low-income tenants, you receive tax credits which help offset the cost of construction.
The process of how we distribute the tax credits is outlined in our Qualified Allocation Plan (QAP).
Housing Tax Credit Programs
9% Housing Tax Credits
We accept applications for 9% Housing Tax Credits once a year, usually in mid-March. The process is competitive and applications are ranked according to scoring criteria outlined in our Qualified Allocation Plan (QAP).
The scores in the pools are used to subdivide the available per capita credits. Reservations are then made to developments in order of rank, as long as credits are available within the given pools.
4% Housing Tax Credits
Developments financed with tax-exempt bonds are eligible to apply for housing tax credits on a rolling basis and do not need to compete for credits. These applications must meet the minimum requirements of the QAP to be eligible for Housing Tax Credits, however they do not contain the same placed-in-service time restraints as the competitive 9% Housing Tax Credits.
Housing Tax Credit Application Process
Learn how the application process works for both the 4% and 9% Housing Tax Credits and how to apply for each.
Housing Tax Credit Applications Archive
We provide access to all competitive and non-competitive Housing Tax Credit reservation applications and market studies for your review.
IRS Form 8609 Process
IRS Form 8609 Application
Owners of residential low-income rental buildings are allowed a housing credit for each qualified building over a 10-year credit period. A separate Form 8609 must be issued for each building in a multiple building project.
Calendar and Reference Materials
Apply via the event calendar for any sessions provided by Virginia Housing related to our Housing Credit Allocation programs.
The Resource and Reference Materials page contains additional information about the Housing Tax Credit program, such as videos, forms, guidelines, requirements and more.