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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 HOME Program: The Glue That Makes LIHTC, Other Federal Housing Programs Work Better

  • Private Sector Aims to Speed Disaster Recovery

  • Ohio Developer Honored for Post-Foreclosure Recovery Efforts

  • Northeast Leads Nation in Severely Rent Burdened Households

  • Focus On: Spokane, Washington

  • Crowning Achievement: Integrating Housing and Elder Services Preserves Independence

  • Q&A: Over Income Tenants

  • Amid Budget Concerns and Opposition, NHTF Supporters Persevere

  • Oregon Legislature Eliminates BETC, Creates Three New Tax Credits

  • Ohio Renews, Improves Historic Preservation Tax Credit

  • NMTCs Expand Bronx Charter School

  • Twinning NMTCs with SBA 7a Loans: Legal and Practical Considerations

  • NMTC Working Group Update: August 2011

  • Futuristic Office Building Benefits from HTCs

  • History and the Hill: Appeals Court Ruling in the Simmons v. Commissioner a Victory for Preservation Easements

  • Q&A:Costs Incurred by a Lessee

  • What's on Top? Rooftops on Historic Tax Credit Projects

  • Inspector General to Release Audits of Section 1603 Projects

  • Industry Profile: Dennis V. McGinn

  • Q&A: Roof Repairs in Lieu of Rent Payments

 




Home / Journal / 2011 / 08
August 2011, Volume II, Issue VIII Published By Novogradac & Company LLP

Changes on the Horizon for Banks

By Michael J. Novogradac, CPA

As the economy slowly recovers, and with it the tax credit investment market, it is important to be aware of forthcoming regulatory changes that will affect banks and other financial institutions, that are some of the largest tax credit investors. In their own ways each of these changes have the potential to impact banks' investment decisions in all tax credits, including low-income housing tax credits, new markets tax credits, historic tax credits and renewable energy tax credits.

 

 

 

See a brief video slideshow of the ASM International headquarters renovation project, which is featured on the cover of this month's Journal. The renovation was made possible through state and federal historic tax credits. To read the full story, see the print version of the Journal.

Treatment of Fees Payable to a Removed General Partner

By Lisa Pekkala and Tom Stephens, SNR Denton

This article is the second in a series of articles discussing the removal of a general partner (GP) and other associated issues. Last month's article discussed the various grounds for a GP removal and recommendations for drafting partnership agreements that clearly delineate the partners' respective expectations with respect to the triggers and consequences of removal.

 

New Markets Tax Credits

Annualizing Employment Income

By Amanda Talbot, HCCP, Novogradac & Company LLP

The lack of specific federal guidance for low-income housing tax credit (LIHTC) properties on how to annualize employment income can cause significant differences in income calculations from one file to the next. Property management companies across the country have adopted policies and procedures that attempt to create some consistency between calculations included in each file, but there will never be a set formula that can be used in every situation, and guidance often varies between state agencies.

 


Q&A: Is the NMTC Compliance Period Seven Years? Or Nine?

By Owen P. Gray, CPA, Novogradac & Company

Question: How long is the new markets tax credit (NMTC) compliance period?

Answer: According to Internal Revenue Code (IRC) Section 45D and the Treasury Regulations, the NMTC is claimed over a period of six years and a day. However, the NMTC compliance period is seven years from the date of the qualified equity investment.



 

Renewable Energy Tax Credits

The Current: Treasury Reveals Some of What's Behind the Curtain

By Forrest David Milder, Esq., Nixon Peabody LLP

I've been referring for quite a while to the Treasury's handling of applications for Section 1603 cash grants in lieu of renewable energy tax credit as occurring "behind a curtain." And while we so-called "experts" were able to give pretty good "guesstimates" about how Treasury evaluated Section 1603 applications, we certainly had to acknowledge that we were limited to just that − guessing and estimates.

 


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News Briefs


RBC announced the $3.62 billion sale of its United States regional retail banking operations to PNC Financial Services Group.


The Ohio Housing Finance Agency (OHFA) issued a memo last month in response to inquiries regarding upcoming deadlines for the agency's experience and capacity review.


President Barack Obama appointed Carol Galante to serve as acting commissioner of the Federal Housing Administration (FHA).


Connecticut expanded its historic preservation tax credit (HTC) program to include nonresidential use and a broader range of property types.


The Office of the Comptroller of the Currency (OCC) has published a Community Development Investments newsletter that provides an in-depth look at bank financing for charter schools.


Reps. Aaron Schock, R-Ill., and Earl Blumenauer, D-Ore., have introduced legislation to modernize the federal historic tax credit (HTC).


The American Wind Energy Association (AWEA) announced the installation of its 2011-2012 board of directors, led by electric utility executive Ned Hall.

  

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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