Tax Credit 2025/2026 Exam Questions
with Detailed Verified Answers (100%
Correct Answers) | Already Graded A+
Eligible Basis - 🧠ANSWER ✔✔The total amount of development cost that would
be eligible for generating S42 Tax Credits if all of the housing units are used for
low-income housing
Qualified Basis definition - 🧠ANSWER ✔✔the amount of eligible basis that will
be used to generate low income housing tax credits (LIHTC)
Qualified basis is based upon the - 🧠ANSWER ✔✔proportion of the property that
will be used for affordable housing
Applicable Fraction definition - 🧠ANSWER ✔✔the %-age of a S42 property that
is dedicated to serving low-income residents.
The Applicable Fraction is the lesser of: - 🧠ANSWER ✔✔(a) affordable units as a
percentage of total units (the "unit fraction"
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 1
STATEMENT. ALL RIGHTS RESERVED
, (b) low-income housing SF as a percentage of total project SF (the "floor space
fraction")
Qualified Basis is equal to the [Eligible Basis x _______ ______] - 🧠ANSWER
✔✔Eligible Basis x Applicable Fraction
Costs that may be included in the LIHTC eligible basis must be ______ -
🧠ANSWER ✔✔depreciable
Eligible costs include all "____" costs and most depreciable "____" costs -
🧠ANSWER ✔✔Eligible costs include all "hard" costs and most depreciable "soft"
costs
"Hard" Construction Costs Examples - 🧠ANSWER ✔✔
8609s can be used to _____ and _____ - 🧠ANSWER ✔✔obtain a housing credit
allocation from the housing credit agency, and
certify certain information.
Housing Finance Committees/Associations will only accept cost certifications
prepared by an independent - 🧠ANSWER ✔✔CPA or Tax Attorney
"Soft" Costs Examples - 🧠ANSWER ✔✔-Architectural & Engineering Costs
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 2
STATEMENT. ALL RIGHTS RESERVED
with Detailed Verified Answers (100%
Correct Answers) | Already Graded A+
Eligible Basis - 🧠ANSWER ✔✔The total amount of development cost that would
be eligible for generating S42 Tax Credits if all of the housing units are used for
low-income housing
Qualified Basis definition - 🧠ANSWER ✔✔the amount of eligible basis that will
be used to generate low income housing tax credits (LIHTC)
Qualified basis is based upon the - 🧠ANSWER ✔✔proportion of the property that
will be used for affordable housing
Applicable Fraction definition - 🧠ANSWER ✔✔the %-age of a S42 property that
is dedicated to serving low-income residents.
The Applicable Fraction is the lesser of: - 🧠ANSWER ✔✔(a) affordable units as a
percentage of total units (the "unit fraction"
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 1
STATEMENT. ALL RIGHTS RESERVED
, (b) low-income housing SF as a percentage of total project SF (the "floor space
fraction")
Qualified Basis is equal to the [Eligible Basis x _______ ______] - 🧠ANSWER
✔✔Eligible Basis x Applicable Fraction
Costs that may be included in the LIHTC eligible basis must be ______ -
🧠ANSWER ✔✔depreciable
Eligible costs include all "____" costs and most depreciable "____" costs -
🧠ANSWER ✔✔Eligible costs include all "hard" costs and most depreciable "soft"
costs
"Hard" Construction Costs Examples - 🧠ANSWER ✔✔
8609s can be used to _____ and _____ - 🧠ANSWER ✔✔obtain a housing credit
allocation from the housing credit agency, and
certify certain information.
Housing Finance Committees/Associations will only accept cost certifications
prepared by an independent - 🧠ANSWER ✔✔CPA or Tax Attorney
"Soft" Costs Examples - 🧠ANSWER ✔✔-Architectural & Engineering Costs
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY 2
STATEMENT. ALL RIGHTS RESERVED
