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This information was published in the Novogradac Journal of Tax Credits. The complete version is available by paid subscription only. Click here for more information on subscribing.

Also in this Issue

  • The Remarkable Resurgence and Resilience of the LIHTC

  • The LIHTC's Long Shadow

  • Report Examines Ways to Build Sustainable Housing Developers

  • LIHTCs Build a Safe Place for Domestic Violence Survivors

  • Adding Value Through Resident Services

  • Focus On: Des Moines, Iowa

  • IRS Guidance May Add Layer of Risk to Common Financing Structure

  • Q&A: Uncommon Gift Income

  • Texas Leads Multifamily Property Weatherization Ramp-Up

  • Restored Hotel Earns Indiana Preservation Honors

  • NMTCs Allow Inupiat Eskimo Elders to Come Home

  • Let's Do The Math: Tax Credits Add Up To More Benefits For Charter Schools

  • NMTCs Preserve 280 Manufacturing Jobs in Rural Vermont

  • Industry Profile: Elaine Martin

  • NMTC Working Group Update: May 2011

  • Q&A: Replacement LIC Representatives

  • How to Fit Contemporary Office Space into Historic Buildings

  • Q&A: Working with the National Park Service – How to Qualify a Building for the Historic Tax Credit

  • The Current: Bonus Depreciation – A Few More Things

  • Q&A: State Taxation of 1603 Grants – Focus on California

Home / Journal / 2011 / 05
May 2011, Volume II, Issue V Published By Novogradac & Company LLP

Debt Limit Leads Off Series of Spending, Tax Deliberations

By Michael J. Novogradac, CPA

Shortly before midnight on April 8, lawmakers cut a deal that slashed $38.5 billion from fiscal year (FY) 2010 funding levels—the largest annual spending cut in history. A week later, on April 15, the House voted 235 to 193 in favor of the 2012 budget resolution written by House Budget Committee Chairman Paul Ryan, R-Wis. The bill, pronounced dead on arrival in the Senate, is one of the first salvos in the next round of debate over federal spending.

 

 


New Markets Tax Credits

Supporting LIHTCs: As Simple As Show and Tell

By Jennifer Hill, Staff Writer, Novogradac & Company LLP

On a sunny, brisk March day in Clare, Mich., Rep. Dave Camp, chairman of the Ways and Means Committee, took a tour of ClareCastle Senior Apartments, a low-income housing tax credit (LIHTC) financed property in his district. The tallest building in downtown Clare, the apartment community stands on the former site of Thayer's Dairy, an old ice cream factory with which the chairman was familiar.

 

Renewable Energy Tax Credits

IRS Updates 8823 Guide

By Jennifer Dockery, Assignment Editor, Novogradac & Company LLP

The Internal Revenue Service (IRS) on March 25 released an updated version of its Guide for Completing Form 8823: Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition (8823 Guide). The guide provides standardized definitions for the noncompliance categories listed on Form 8823, so that the state agencies can act consistently in interpreting and applying Section 42 of the Internal Revenue Code (IRC) and in its reporting of noncompliance.

 


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Managing the Exit Tax Burden of the QALICB
Part Two of Two

By Neil D. Kimmelfield, Lane Powell PC

Part One of this article explained that when a new markets tax credit (NMTC) investor exercises a put option (the exit transaction) in a leveraged transaction at the end of the seven-year compliance period, it is possible that the qualified active low-income community business (QALICB) will not recognize any cancellation of indebtedness (COD) income. Part One also explained that if COD income is recognized, the amount of income should be the difference between the issue price of the "B loan" and the fair market value of the B loan when the put is exercised.

 

New Markets Tax Credits

History and the Hill: Fourth Circuit Decision Will Have Significant Impact on the Value of Allocated State HTCs

By John Leith-Tetrault, National Trust Community Investment Corporation

By now you may have read and heard more than you ever wanted to know about the legal and accounting implications of the March 29 4th U.S. Circuit Court of Appeals reversal of December 2009 Tax Court decision in Virginia Tax Credit Fund v. Commissioner 2001. This column will focus instead on the possible market impacts of this decision in terms of state historic tax credit (HTC) supply, pricing and the net value of these credits to historic rehabilitation transactions.

 


News Briefs


Tax credit syndicators are now the largest owners of apartments in the United States, according to the National Multi Housing Council's (NMHC's) 2011 NMHC 50, an annual ranking of the 50 largest apartment owners and 50 largest managers.


The National Affordable Housing Management Association (NAHMA) launched an online database of Communities of Quality (COQ), multifamily affordable properties that have received NAHMA recognition for their physical, financial and social conditions.


The U.S. Department of Housing and Urban Development (HUD) announced the fiscal year 2011 Contract Rent Annual Adjustment Factors (AAFs) in a March 16 Federal Register notice.


New York's Independent Democratic Conference (IDC) called for the reinstatement of the state's Historic Rehabilitation Tax Credit (HRTC) program.


Advantage Capital Partners invested $5.7 million in manufacturing company Barton Nelson through the federal new markets tax credit (NMTC) and Missouri New Markets Development programs.


The National Park Service (NPS) released its annual report for fiscal year (FY) 2010 on the historic tax credit (HTC) program.


The Internal Revenue Service (IRS) announced the allocation of nearly $190.8 million in volume cap authority for 13 projects eligible to be financed with tax credit bonds under the New Clean Renewable Energy Bonds (New CREBs) program.

  

The Novogradac  Journal of Tax Credits offers news, opinions and features about affordable housing, community development and renewable energy tax credit industries. The complete version is available by paid subscription only. Click here for more information on receiving a monthly print subscription.

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