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State Tax Credits News Briefs - September 2012

New York State Homes and Community Renewal (HCR) announced the availability of $4 million under the state low-income housing tax credit (SLIHC) program. Interested developers that construct or rehabilitate low-income housing must apply in the Unified Funding 2012 Capital Application round. The application must be completed by Oct. 25 for early round projects and Nov. 29 for all other projects. A maximum annual SLIHC allocation of $20,000 per unit and $750,000 per project may be requested. Download a copy of the request for proposal and the application at HCR.

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Illinois’ 23 largest wind farms created more than 19,047 full-time equivalent jobs during construction, according to a report from Illinois State University’s Center for Renewable Energy. The analysis, titled “Economic Impact of Wind Energy Development in Illinois,” also found that those projects support approximately 814 permanent jobs with a payroll of nearly $48 million in rural areas and that they generate $28.5 million in annual property taxes for local economies. In all, the projects are expected to generate a total economic benefit of nearly $6 billion over their life span, according to the report.

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The Heights Foundation secured $1.5 million in federal and state NMTC equity to finish constructing the Heights Center, a $5.8 million cultural arts and community center in Harlem Heights, Fla. When completed this winter, the center will house employment training, literacy, GED and computer programs, as well as medical screenings. The building’s cultural arts hall, conference and meeting rooms will be available to other community organizations. CityScape Capital invested in the federal NMTCs and Stonehenge Capital syndicated the state NMTCs for investor U.S. Bancorp Community Development Corporation.

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The Wisconsin Economic Development Corporation (WEDC) certified eight entrepreneurial businesses for Qualified New Business Venture (QNBV) tax credits to help them seek new investment. QNBV status makes investors in the companies eligible for a 25 percent tax credit on the amount of the investment. The businesses receiving certification include SpeechTrails Inc. in Elm Grove; WholeTrees LLC in Stoddard; Alithias Inc. in Whitefish Bay; FlatSix LLC and InControl Medical LLC, both in Milwaukee, NitricGen Inc. and Hopster Inc., both in Middleton; and Outdoor InSite in Madison.

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The New Hampshire Community Development Finance Authority (CDFA) awarded more than $5.4 million in state tax credits to 16 not-for-profit organizations. The credits are expected to leverage nearly $42 million for community and economic development projects, which include renovating a Boys & Girls Club facility, converting an abandoned mill to mixed-income housing and bringing broadband Internet access to underserved communities in Southwestern New Hampshire. The CDFA Tax Credit program enables businesses to invest cash, securities or real property to fund CDFA-approved projects in exchange for a 75 percent state tax credit that can be applied against the state business profits, business enterprise and insurance premium taxes. Organizations that receive a tax credit award are responsible for raising donations in the amount of the award from for-profit businesses that have state tax liability. A list of the awardees for fiscal years 2013 and 2014 is available at nhcdfa.org.

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The Oregon Department of Energy (ODOE) filed permanent rules for the Business Energy Tax Credit (BETC) program. The rules apply to the previous version of the program, which has been replaced by the Energy Incentives Program. The rules prevent applicants from increasing the amount of the tax credit earned, incorporate sunset date provisions, and add fees for pass-through services, re-inspections and transfers. Certified BETC project owners must complete the project and submit the final application by Nov. 1 to receive a tax credit. Owners that began construction by April 15, 2011 and submit evidence of construction to ODOE will have until June 30, 2014 to complete the project and submit the final application. More information about the permanent rules is available at the Oregon Department of Energy.

Journal Category:

State Tax Credits

Authors:

Novogradac

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