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Super Committee Takes Center Stage

By Michael J. Novogradac, CPA

The Joint Select Committee on Deficit Reduction, also known as the Super Committee, last month began the herculean task of identifying and agreeing on $1.5 trillion in bipartisan deficit reduction measures. At the time of this writing it is considered unlikely that revenue measures will be part of the package; in fact, Republican members of the committee have signed a pledge to exclude new taxes as a part of the final deal, signaling that "net" revenue raising measures are unlikely to be considered. However, a plan could involve some tax cuts that when combined with curtailing or eliminating tax expenditure programs would result in an agreement that did not raise net new taxes. This means changes to tax expenditures such as the low-income housing tax credit (LIHTC), new markets tax credit (NMTC), historic tax credit (HTC) or renewable energy tax credit are not necessarily off the table.

 

 

Federal Budget Cuts to Housing Land with a THUD

By Peter Lawrence, Enterprise Community Partners

In September, we saw Congress finally take action on long-delayed spending bills, including the bill that funds U.S. Department of Housing and Urban Development (HUD) programs.

First up was the House of Representatives. On September 8, the House Transportation, Housing and Urban Development (THUD) Appropriations Subcommittee voted unanimously to approve the fiscal year (FY) 2012 appropriations bill.

 

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NMTC Working Group Update: October 2011

By Brad Elphick, CPA, Novogradac & Company LLP

In June, the Internal Revenue Service (IRS) released two notices regarding potential ways to encourage non-real estate investments under the New Markets Tax Credit (NMTC) program. The first notice, a notice of proposed rulemaking (NPRM), contained proposed regulations and invited comments on the proposed changes. The second notice, an advance notice of proposed rulemaking (ANPRM), invited comments on potential changes for which the IRS is considering issuing proposed regulations.

 

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The Current: Combining New Markets Tax Credits with the ITC or Section 1603 Grant Programs

By Forrest David Milder, Esq., Nixon Peabody LLP

It has taken a few years, but the idea of combining renewable energy tax credits or grants with the new markets tax credit (NMTC) has begun to take hold. In this edition of The Current, I thought it would be useful to provide an overview of how the programs work together.

Because you're reading this column, I'll presume that you understand the basics of the energy investment tax credit (ITC) and Section 1603 grant rules, but want to know more about NMTCs. (I'm leaving out the production tax credit for this discussion).

 

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Analysis: Operating Costs Higher Per Unit for LIHTC Properties than for Market Rate

By Alex Ruiz, Managing Editor, Novogradac & Company LLP

It costs approximately $55 more per unit to operate a low-income housing tax credit (LIHTC) property than it does to operate a market-rate apartment property, according to Novogradac & Company's analysis of 2010 operating expense data.

 

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News Briefs

The Internal Revenue Service (IRS) announced in a press release that it will provide tax relief to certain taxpayers in designated areas that were impacted by Hurricane Irene... READ MORE	Owners or managers whose assisted rental properties in Texas have been damaged by the recent wildfires should submit a Notice of Casualty Loss form to the Texas Department of Housing and Community Affairs (TDHCA), the agency said... READ MORE
The House Appropriations Subcommittee on Transportation, Housing and Urban Development and Related Agencies approved a fiscal year (FY) 2012 U.S. Department of Housing and Urban Development (HUD) appropriations bill... READ MORE	Oregon Gov. John Kitzhaber signed legislation to create the Oregon Low Income Community Jobs Initiative, a state new markets tax credit (NMTC) program... READ MORE
The city of Seattle, Wash.'s Office of Economic Development allocated $10 million in new markets tax credits (NMTCs) to support the INSCAPE building's renovation.... READ MORE	The Wilkes-Barre YMCA announced a $15 million project to rehabilitate its historic six-story building in downtown Wilkes-Barre, Pa... READ MORE
SolarCity unveiled a plan to double the total number of residential solar installations in the United States by installing solar systems on 160,000 military homes... READ MORE