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IRS RULING PROVIDES GUIDANCE FOR USING ENERGY TAX CREDITS IN BOND-FINANCED HOUSING PROJECTS

Wednesday, May 21, 2008 - 5:00AM

A recent private letter ruling (PLR) published by the Internal Revenue Service (IRS) provides guidance to affordable housing developers regarding how to structure bond-financed projects to maximize renewable energy investment tax credits available under Section 48 of the Internal Revenue Code. In PLR 200820011, the IRS ruled that no reduction in investment credit basis was required for solar equipment placed in a tax-exempt bond-financed affordable housing project where: bond loan documentation prohibited the use of bond loan proceeds to finance the solar equipment; the bond proceeds were not actually used to finance the solar equipment; and the solar equipment did not serve as collateral for the bond loan.


Learn more about this ruling next week in the Novogradac Report on Tax Credits, a weekly podcast presented on Tax Credit Tuesdays.

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