Sign Up For Novogradac Industry Alert Emails

New Markets Tax Credits News Briefs - May 2014

On March 13, Ohio State Rep. Terry Boose-R, introduced H.B. 478 to streamline the Ohio new markets tax credits (NMTC) program. The legislation would amend the Revised Code to eliminate the requirement that a taxpayer receive federal NMTC authority in order to qualify for the NMTC, and would allow taxpayers to claim the credit earlier in the credit schedule. In addition, H.B. 478 would allow credit-eligible investments to be made in low-income community businesses that derive 15 percent or more of annual revenue from the rental or sale of real property.

***

The Community Development Financial Institutions (CDFI) Fund released its interim impact assessment for the Capital Magnet Fund in March. Entitled, “Creating Affordable Homes for America,” the report provides information on how Capital Magnet Fund awardees used the funding to provide affordable housing throughout the country. The report states that awardees have generated more than $1 billion of investment in affordable housing and associated community and economic development. The report also found that the fund has created or maintained 315 jobs, created 5,456 construction jobs and has aided 189 developments, including community and economic development. The Capital Magnet Fund, which began in 2010, provides competitive award grants to community development financial institutions and qualified nonprofit organizations. The interim impact assessment is available at www.newmarketcredits.com.

***

On March 14, Tax Advantage Group (TAG), a consulting firm specializing in NMTCs, promoted Lisa Kent to controller and compliance officer, and hired Anthony Cox as NMTC program manager. Kent was an NMTC compliance manager for the firm for four years prior to the promotion. Her responsibilities now include overseeing the company’s financial policies, procedures, controls and reporting systems. She will also manage compliance services for clients. Before joining TAG, Kent was a staff accountant at KPMG LLP, and a tax manager at Dixon Hughes PLLC. She is a certified public accountant and holds a bachelor’s degree in accounting from Louisiana State University. As the NMTC program manager, Cox will manage the company’s NMTC accounts and the accounts of Greenville New Markets Opportunity, the firm’s affiliate fund. Cox will assist with NMTC allocation applications, will analyze loan proposals, will review due diligence materials and will prepare associated spreadsheets, in addition to other responsibilities. Previously, Cox worked for The Fieldstone Group, a real estate development firm. Cox holds a master’s degree in real estate development from Clemson University.

***

On March 17, Chaucer Foods Inc. announced it plans to build a freeze-dried food processing facility in Forest Grove, Ore. Chaucer, an Oregon-based international food supplier, utilized NMTC financing to renovate and purchase equipment. Stonehenge Community Development LLC and Wells Fargo provided financing with the help of $6 million in federal NMTCs. The facility also received $4 million in Oregon NMTCs. The facility will occupy 85,000 square feet and will yield 73 new jobs. The facility will also include new technology that will reduce the time to freeze-dry fruit. Chaucer anticipates completing renovations by September.

***

CORRECTION

An article “Mile High United Way Lands New Headquarters” in the April issue of the Journal of Tax Credits misidentified the name of the transaction in a summary of its financing. The title of that breakdown should have read “Mile High United Way Headquarters.” We regret the error.

Journal Category:

New Markets Tax Credit

Authors:

Novogradac

Learn more about Novogradac's expertise and many services