Form 8586 allows owners of qualified residential buildings in low-income housing projects to claim the low-income housing credit, which is taken over a ten year period. The credit can be claimed for each new qualified low-income building placed in service after 1986. The buildings must meet one of two minimum set-aside tests: either the 20-50 test, which states that at least 20% of the units must be rent restricted and set aside for individuals with an income less than 50% of the area median gross income, or the 40-60 test, which states that at least 40% of the units must be rent restricted and set aside for individuals of an an income less than 60% of the area median gross income. Furthermore, the amount of the credit cannot exceed the amount allocated to the building. Refer to section 42(h)(1) of the Internal Revenue Code for further details. Note that the building must continue to comply with certain requirements for a fifteen year period. If the building ceases to meet certain qualifications, you may be required to recapture (repay) part of the credit.