Breaking News

COMMENT LETTERS SUBMITTED REGARDING TAX CREDIT ACCOUNTING PROPOSAL

WASHINGTON, D.C.– June 14, 2013

Novogradac & Company today submitted a comment letter regarding the Financial Accounting Standards Board Emerging Issues Task Force’s (EITF’s) Proposed Accounting Standards Update, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The proposed amendments would modify the conditions that an entity would be required to meet to elect to use the effective yield method for qualified low-income housing tax credit (LIHTC) investments. In its letter, in addition to the LIHTC, Novogradac & Company discusses the proposal’s implications for new markets tax credits (NMTC), renewable energy tax credits (RETC) and historic rehabilitation tax credits (HTCs).

Also today, the NMTC Working Group submitted a comment letter responding to the proposed rule, which focused specifically on the proposal as it relates to NMTCs.

IRS ISSUES GUIDANCE FOR ASSISTING OKLAHOMA TORNADO VICTIMS

WASHINGTON, D.C.– May 31, 2013

The Internal Revenue Service (IRS) today suspended certain requirements for qualified residential rental projects financed with exempt facility bonds to provide emergency housing relief to victims affected by the storms and tornadoes in Oklahoma between May 18 and May 27, 2013. Notice 2013-39 suspends certain income limitation requirements under Internal Revenue Code (IRC) section 142(d) that apply to qualified residential rental projects financed with tax-exempt bonds. The IRS also released Notice 2013-40, which suspends certain requirements under IRC Section 42 for low-income housing tax credit- (LIHTC-) financed properties to provide emergency housing relief for citizens affected by the recent storms and tornadoes in Oklahoma. Both notices went into effect May 20, 2013.

BIPARTISAN HURRICANE SANDY TAX RELIEF BILL ANNOUNCED

WASHINGTON, D.C.– May 23, 2013

A bipartisan coalition of lawmakers announced that they will introduce the Hurricane Sandy Tax Relief Act of 2013 to provide tax relief for victims of Hurricane Sandy in areas designated as federal disaster areas by the president. Reps. Bill Pascrell, Jr., D-N.J., Joseph Crowley, D-N.Y., Rodney Frelinghuysen, R-N.J., Michael Grimm, R-N.Y., John Larson, D-Conn., Frank LoBiondo, R-N.J., Charles Rangel, D-N.Y., Tom Reed, R-N.Y., and Carolyn McCarthy, D-N.Y., will propose a tax package that includes increased low-income housing tax credit (LIHTC) allocation authority for declared disaster areas. The legislation is modeled after a similar bill passed into law in the wake of Hurricane Katrina, and the text of the bill will be posted to www.taxcredithousing.com as soon as it becomes available.

SENATE FINANCE COMMITTEE CONSIDERS OPTIONS FOR LIHTC REFORM

WASHINGTON, D.C.– May 15, 2013

The Senate Finance Committee today released a set of options for reforming the Low-Income Housing Tax Credit (LIHTC) program. The options, listed in a paper, include repealing the LIHTC program, replacing it with an equivalent reduction on rental income, and reforming or expanding the program. The document is the sixth in a series of Senate Finance Committee papers detailing tax reform options. The list is drawn from tax-reform hearing witnesses, bipartisan commissions, tax policy experts and members of Congress. The Senate Finance Committee notes on its web site that the options listed are not necessarily endorsed by either the chairman or ranking member.

To hear more about how this development fits into ongoing tax reform efforts, tune in to the Tax Credit Tuesday podcast on May 21.

News Archives