IT-HC: Certification of Georgia Housing Tax Credit (Revision 2022-06)

Who files this form

Form IT-HC certifies the Georgia Housing Tax Credit and tracks credits earned and used. Each shareholder, partner, or member receiving a proportionate share of the credit should report the amount claimed or earned each year and file the form with their income tax return or insurance premium tax return.

The building owner completes the owner certification, declaring that the building continues to qualify and indicating whether its qualified basis has decreased for the tax year. The Department of Community Affairs (DCA) completes Part IA.

What you'll need

If you are the taxpayer initiating the credit, attach these documents to the Georgia State Income Tax Return or Insurance Premium Tax Return where the credit is generated:

• A properly executed Form IT-HC, pages 1 through 3, showing the total credit claimed.
• A Georgia K-1 equivalent showing the amount of state credit allocated.
• A schedule showing the building-by-building allocation for which the credit is generated.

This documentation requirement does not apply to taxpayers receiving the credit from another source. Page 3 of Form IT-HC should also be attached to the Georgia State Income Tax Return where the credit is claimed.

Each partnership or other entity involved in marketing Georgia Housing Tax Credits must attach an assignment letter.

A Federal Form 8609 must have been issued for the property before you submit a credit claim.

How to file

1. Have DCA complete and sign Part IA, which records the building information and maximum allowable credit.
2. Complete and sign the owner certification in Part IB, including whether the building's qualified basis has decreased for the tax year.
3. Complete the owner information in Part II. Enter the federal and Georgia credit percentages if known.
4. Complete the Part III schedule to show credits earned and used and determine the credit to claim. Enter the total credit amount from all Forms IT-HC submitted with the return.
5. File the form and applicable attachments with the income tax return or insurance premium tax return. Insurance companies also complete the permission statement and signature fields on page 3.

The form does not provide a mailing address or e-filing directions.

Common mistakes

• Leaving out required attachments. The form warns that failure to attach the required documents will result in disallowance of the credit.
• Claiming a credit before Federal Form 8609 has been issued. Do not submit a claim for a property without an issued Federal Form 8609. Estimates will not be accepted.
• Missing transfer reporting. A credit transfer requires notice to the Commissioner of the Department of Revenue and/or the Commissioner of Insurance. The transferor must check the transfer box on the return following the transfer, and the transferee must check it on returns claiming the credit. The transfer checkbox does not apply to insurance companies.
• Omitting an assignment letter. Partnerships and other entities involved in marketing Georgia Housing Tax Credits must attach one.

Questions people ask

Which buildings can qualify for the credit?

The credit can only be claimed for buildings placed in service after January 1, 2001. The owner must certify that the building continues to be part of a qualified low-income housing development and meets Internal Revenue Code Section 42(g) and O.C.G.A. Section 48-7-29.6.

Can unused credits be carried forward?

Yes. The form allows a three-year carryforward of unused tax credits.

Does transferring ownership of the credit trigger recapture?

No. The form states that transfers of ownership of the credit do not trigger recapture for Georgia Housing Tax Credit purposes. However, the Commissioner of the Department of Revenue and/or the Commissioner of Insurance must be notified.

What does TIN mean?

TIN means taxpayer identification number.

Official sources

• https://dor.georgia.gov/document/form/it-hc/download