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Novogradac Journal of Tax Credits Volume 1 Issue 2

The February 2010 issue of the Novogradac Journal of Tax Credits.

Journal cover February 2010

Articles

Michael J. Novogradac

Monday, February 1, 2010

With so many eyes on unemployment numbers that topped 10 percent nationwide last fall, it is no surprise that job creation became and remains a national focus. On December 16, 2009 the U.S. House of Representatives passed the Jobs for Main Street Act, H.R. 2847, with the intent that it would create or save jobs by directing $75 billion in targeted investments for highways and transit, school renovation, hiring teachers, police, and firefighters, small business, job training and affordable housing – key drivers of economic growth that, according to House Speaker Nancy Pelosi, “have the most bang for the buck.”

Jennifer Dockery

Monday, February 1, 2010

Congress included as part of the Housing and Economic Recovery Act (HERA) a provision that requires the U.S. Department of Housing and Urban Development (HUD) to collect from state housing finance agencies (HFAs) data about the residents of the HFAs low-income housing tax credit (LIHTC)-funded units. Since the bill was passed in July 2008, HUD and the HFAs have been working on the best way to collect that data. In March 2009, the Federal Register published a HUD notice that sought comments from interested parties about the implementation of the Tenant Data Collection Initiative (TDCI). The agency plans to issue the final requirements for the program soon.

Laurel Tinsley

Monday, February 1, 2010

Almost since the inception of the new markets tax credit (NMTC) program, industry participants have debated whether the cure period described in Treasury Regulation Section 1.45D-1(e)(6) is available to correct a qualified community development entity’s (QCDE) failure to invest “substantially all” (defined as meaning at least 85 percent) of the proceeds of a qualified equity investment (QEI) in qualified low-income community investments (QLICIs) within the 12-month period specified in Treasury Regulations Section 1.45D-1(c)(5)(iv) and thereby avoid a potential recapture or disallowance of NMTCs. Fortunately, guidance provided by the Internal Revenue Service in a new private letter ruling may shed some light on this debate.

John Leith-Tetrault

Monday, February 1, 2010

It is often said that holiday gifts sometimes come in strange packages. A long awaited U.S. Tax Court ruling, issued December 21, 2009 in Virginia Tax Credit Fund 2001 vs. Commissioner, was indeed an unexpected gift and a significant victory for the historic tax credit (HTC) industry that sent many tax lawyers, syndicators and investors home for the holidays with a sigh of relief. 

Stephen Tracy

Monday, February 1, 2010

Question: Can individuals (and solar developers) use investment tax credits and depreciation deductions from an investment in a solar project to decrease their federal income tax liability?


News Briefs

Monday, February 1, 2010

There is cautious optimism that much delayed affordable rental housing production will occur in 2010, although more should be done to mitigate vulnerabilities in the low-income housing tax credit (LIHTC) program and address issues surrounding investor demand, according to a new report from Harvard University's Joint Center for Housing Studies...

Monday, February 1, 2010

On December 14, the Ohio Housing Finance Agency (OHFA) issued compliance guidance for owners and managers of projects financed using the Tax Credit Assistance Program (TCAP), the low-income housing tax credit cash grant exchange program and the Neighborhood Stabilization Program. The guidance outlines OHFA's current interpretation of compliance requirements for all three programs...

Monday, February 1, 2010

On December 22, the U.S. Department of Housing and Urban Development's Office of Policy Development and Research (PD&R) announced that it had recently added to the HUD USER web site the overall scores of the physical inspections that HUD's Real Estate Assessment Center completes of HUD-assisted...

Monday, February 1, 2010

The YWCA Greater Los Angeles secured $70 million in new markets tax credits (NMTCs) to finance a new downtown facility that will provide job and placement opportunities to area youth. The new campus is the first development funded by the Los Angeles Development Fund (LADF), established in 2007 to manage the city's NMTC program...

Monday, February 1, 2010

Government, entertainment and sports leaders joined experts and survivors on January 8 as the Family Violence Prevention Fund broke ground on its new international conference center and exhibition hall. Building 100, on the Main Post grounds of San Francisco, Calif.'s historic Presidio...

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