Form DTF-625: Low-Income Housing Credit Allocation and Certification (2026)
Last reviewed: 2025-10-29
Use the New York Tax Form Calculator Form DTF-625 — Low-Income Housing Credit Allocation and Certification as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 New York state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.
Form DTF-625 is issued by the New York State Division of Housing and Community Renewal (DHCR) to allocate and certify the Low-Income Housing Credit for qualified residential rental buildings under Public Housing Law Article 2-A. The allocation authorizes the credit amount and assigns a Building Identification Number (BIN) to each certified project. The credit cannot be claimed without this allocation.
Building owners must have a fully executed and signed DTF-625 before filing any credit claim using Form DTF-624. The allocation defines the qualified basis, credit percentage, and total credit ceiling applicable to the building’s compliance period.
- Eligibility: Buildings must meet the low-income occupancy requirements and rent restrictions consistent with IRC §42. Eligible projects include new construction and qualified rehabilitation located in New York State and subject to DHCR approval.
- Allocation process: DHCR allocates the credit by issuing DTF-625 in the year the building is placed in service or within an approved extension period. The form specifies the credit amount, applicable percentage, and qualified basis used for subsequent filings.
- Owner elections: The owner must make irrevocable elections on Part I of DTF-625, including the start of the credit period, applicable fraction, and whether the building is part of a multiple-building project. Any change after submission requires DHCR consent.
- First-year certification: Part II is completed by the building owner to certify that the project meets all low-income requirements for the first year of the credit period. This section confirms eligibility for the 10-year credit and initiates the 15-year compliance period.
- Filing obligations: File DTF-625 with the Department of Taxation and Finance by the due date of the first tax return claiming the credit. Subsequent annual claims are made on DTF-624 using the details provided in the original allocation.
| Part 1 – Allocation of credit – Completed by New York State Division of Housing and Community Renewal (DHCR) (see instructions) | |||||
| 1a | a Date of allocation (mm-dd-yyyy) | 1b | 1b | ||
| 2 | 2 | ||||
| 3a | 3a | ||||
| 3b | Mark an X in the box | 3b | |||
| 4 | 4 | ||||
| 5 | Date building placed in service (mm-dd-yyyy) | ||||
| 6 | Mark an X in the boxes that describe the allocation for the building (mark all that apply): | ||||
| Newly constructed and federally subsidized | IRC section 42(e) rehabilitation expenditures not federally subsidized | ||||
| Newly constructed and not federally subsidized | Allocation subject to nonprofit set-aside under IRC section 42(h)(5) | ||||
| Existing building | |||||
| IRC section 42(e) rehabilitation expenditures federally subsidized | |||||
| Part 2 – First-year certification – Completed by building owner with respect to the first year of the credit period (see instructions) | |||||
| 7a | Date building placed in service (mm-dd-yyyy) | 7b | 7b | ||
| 8a | 8a | ||||
| 8b | Are you treating this building as part of a multiple building project for purposes of IRC section 42? | ||||
| 9a | If box 6a or box 6d is marked, do you elect to reduce eligible basis under IRC section 42(i)(2)(B)? | ||||
| 9b | For market-rate units above the average quality standards of low-income units in the building, do you elect to reduce the eligible basis by disproportionate costs of non-low-income units (IRC section 42(d)(3)(B))? | ||||
| 10 | Mark the appropriate box for each election: | ||||
| Caution: Once made, the following elections are irrevocable. | |||||
| a Elect to begin credit period the first year after the building is placed in service (IRC section 42(f)(1)) | |||||
| b Elect not to treat large partnership as taxpayer (IRC section 42(j)(5)) | |||||
| c Elect minimum set-aside requirement (IRC section 42(g)) 40-60 | |||||
| d Elect minimum set-aside requirement (Public Housing Law, section 21(5)(b)) | |||||
| e Elect deep-rent-skewed project (IRC section 142(d)(4)(B)) | |||||
How the Allocation Works
The DTF-625 allocation determines the annual and total credit allowable for each qualified building. Credits are typically claimed over a 10-year period, with a 15-year compliance requirement. Owners use this certification as the foundation for their annual SLIHC credit filings.
Example: A building placed in service in 2025 receives an eligible basis of $6,000,000 and a 9 % credit percentage. The maximum credit is $540,000, claimed evenly at $54,000 per year for 10 years, provided compliance conditions remain satisfied. DHCR assigns a BIN to track the building through the compliance and credit periods.
Failure to maintain qualifying occupancy or rent restrictions can trigger recapture of previously claimed credits. Recapture is reported on Form DTF-626 and must include recalculated basis information and supporting documentation.
To remain compliant, maintain current tenant income certifications, lease files, and building eligibility data throughout the entire 15-year period. DHCR or the Department of Taxation and Finance may audit these records at any time.
Last reviewed: 2025-10-29: If you believe this form requires an update, please contact us.
Compliance and Strategic Planning
Coordinate with DHCR early in project development to ensure allocations align with construction completion and credit deadlines. Submit all required elections and certifications before the project is placed in service to avoid delays or disqualification.
Track ownership and financing changes that could affect eligibility. Transfers, refinancing, or re-syndication during the compliance period must be reported promptly to avoid credit suspension or recapture. Maintain detailed records of each building’s BIN, eligible basis, and qualified basis adjustments.
When planning financing, consider pairing the SLIHC program with federal LIHTC or other state housing initiatives for optimized tax efficiency. Always retain the DTF-625, allocation correspondence, and supporting schedules in your permanent records for the duration of the compliance period plus three years beyond.
Quick Access Tools
Frequently Asked Questions
Does IT-203-ATT replace IT-112-R or IT-112-C?
No. Those forms calculate credits for taxes paid to other jurisdictions, and their totals are then entered onto IT-203-ATT where indicated.
How much income can be excluded on IT-221?
You may exclude up to $5,000 ($10,000 for joint filers) of qualifying disability income, reduced by any NY pension or annuity exclusion previously claimed.
Can part-owners of a property claim IT-119?
Yes — if the notice issued reflects the property key and entity ownership, each owner must enter their share of the underpayment on IT-119 and may attach separate forms as required.
Can I use IT-203-B to claim the NY College Tuition Deduction?
Yes. Part 2 of IT-203-B calculates the allowable college tuition itemized deduction or credit, depending on your AGI and tuition amounts paid.
Are HSA contributions deductible for New York tax?
No—unlike the federal system, New York does not allow an HSA deduction.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.