Notes from Novogradac

Section 48 ITC Proposed Regulations Detail Eligibility of Various Energy Properties to Reflect New Changes in Technology, Inflation Reduction Act Changes

Published by Alvin Lee , Nat Eng , and Peter Lawrence on May 13, 2024

While the Internal Revenue Service (IRS) released proposed regulations Nov. 22, 2023, defining which eligible energy property is qualified for the renewable energy investment tax credit (ITC), as amended by the Inflation Reduction Act (IRA), the industry is still waiting for answers.

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IRS Hearing on Proposed Section 48 Regulations Reveals Potential Issues with the 80/20 Test, Functional Interdependence and Energy Storage Property

Published by Nat Eng , Peter Lawrence , and Alvin Lee on May 13, 2024

As the renewable energy industry awaits final regulations on the proposed update to the rules for the investment tax credit (ITC) under Internal Revenue Code Section 48, it’s important to understand where things stand.

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CTCAC Rent Increase Limitation’s Five-Year Look Back Could Cause Transfer Issues

Published by Thomas Stagg on May 6, 2024

The California Tax Credit Allocation Committee (CTCAC) passed April 3 a new limitation on annual rent increases for low-income housing tax credit (LIHTC) tenants. The limitation applies directly to new developments that have received an allocation after April 3, 2024. However, it immediately applies to owners that plan to transfer ownership within the next five years. Section 10320(b)(1)(D) states the following: “The Executive Director shall not approve a transfer if, in any of the five calendar years prior to the transfer date or in the year to date of the transfer but not earlier than April 3, 2024, the owner has increased the rent for any low-income household in excess of the amounts described in Section 10328(a)(4).” This means that even if the rent increase provision is not contained in the partnership’s regulatory agreement, if an owner is planning to sell or transfer a property within the next five years, the owner will need to make sure they comply with the new regulations immediately.

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2023 FHFA Mission Report Finds that the GSEs and FHLBanks Accomplished their Goals for Supporting Rental Housing and Homeownership in 2023

Published by Peter Lawrence on May 1, 2024

Each year, the Federal Housing Finance Agency (FHFA) releases a Mission Report detailing how well the housing government sponsored enterprises (GSEs) Fannie Mae, Freddie Mac and the Federal Home Loan Banks (FHLBanks) have been meeting their goals of expanding "access to financing for affordable, sustainable, and equitable housing and targeted economic development."

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QOF Investments Build Homes Across Hundreds of American Cities

Published by Jason Watkins on April 24, 2024

Qualified opportunity funds (QOFs) tracked by Novogradac have helped finance more than 175,000 homes across more than 200 American cities–with 164 of those cities seeing at least 100 housing units financed by those QOFs.

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Harvard JCHS Study Draws Correlation Between Zoning, Rental Deserts and Segregation

Published by Peter Lawrence on April 23, 2024

More than one-third, 35%, of census tracts in the 100 largest metropolitan areas in the United States are considered a rental desert, according to new research from the Harvard Joint Center for Housing Studies (JCHS), and 14% of census tracts are considered an extreme rental desert. During a recent webinar, JCHS previewing forthcoming research entitled Rental Deserts, Zoning, And Segregation: Evidence From The 100 Largest Metro Areas, Magda Maaoui of the Harvard Graduate School of Design and colleagues discussed the link between the geography of rental deserts, restrictive zoning and neighborhood segregation levels.

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IRS and Treasury Host Hearing for Proposed Section 45V Clean Hydrogen PTC Regulations

Published by Alvin Lee and Peter Lawrence on April 18, 2024

Witnesses at an Internal Revenue Service (IRS) hearing on proposed regulations for the Internal Revenue Code (IRC) Section 45V tax credit for the production of clean hydrogen found plenty of problems and offered some solutions.

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Section 45V Clean Hydrogen Production Credit Proposes Guidance on Determining Greenhouse Gas Lifecycles, Certification of Hydrogen Production, Generating Electricity from Renewable Resources, and Modifying and Retrofitting Old Facilities

Published by Alvin Lee and Peter Lawrence on April 18, 2024

The Inflation Reduction Act (IRA) introduced a multitude of new tax incentives for the promotion of clean energy development, including Internal Revenue Code Section 45V Credit for the production of clean hydrogen.

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IRS and Treasury Final Regulations on Elective Pay for Clean Energy Tax Incentives Detail New Definitions and Special Rules While Addressing Concerns

Published by Alvin Lee and Peter Lawrence on April 17, 2024

The Inflation Reduction Act (IRA) includes multiple provisions that support the production of clean and renewable energy, including the new tax incentive monetization option of elective pay. The Internal Revenue Service (IRS) and the U.S. Department of the Treasury (Treasury) on March 5 released their final regulations on elective pay, also known as direct pay, (T.D. 9988) under Internal Revenue Code (IRC) Section 6417.

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California Institutes LIHTC Rent Increase Cap

Published by Thomas Stagg on April 15, 2024

California affordable housing properties financed by low-income housing tax credit (LIHTC) equity have a new ceiling for rent increases after the California Tax Credit Allocation Committee (CTCAC) approved new regulations.

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