GO ZONE CREDITS DO NOT QUALIFY FOR TCEP GRANTS, CAN BE REALLOCATED

Monday, April 27, 2009 - 8:00AM

The U.S. Treasury Department released a letter today that says that credits allocated under the Gulf Opportunity (GO) Zone Act of 2005 will not be eligible for grants from the Tax Credit Exchange program (TCEP). The letter from Deputy Assistant Secretary (International Tax Affairs) Michael F. Mundaca says that TCEP applies only to low-income housing tax credits allocated under section 42(h)(3)(C) of the Internal Revenue Code. Because GO Zone credits were allocated as “additional credit cap,” states cannot return these credits for grant money. The letter also says that 2008 GO Zone credits returned in 2009 can be reallocated during states’ 2009 allocation rounds. 

Treasury’s treatment of GO Zone and disaster credits under TCEP will be just one of the topics discussed at Novogradac & Company’s conference A Look Ahead: The LIHTC and the Recovery and Reinvestment Act, May 13-14, 2009 in New Orleans, La.

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