Novogradac Journal of Tax Credits Volume 10 Issue 2
Abridged version of the February 2019 issue of the Novogradac Journal of Tax Credits. For more content, please subscribe to the Journal.
Renovating a historic building can be rewarding. Doing so while a member of the eponymous family watches is even better.
SWISS KRONO Group, one of the world’s leading manufacturers of wood-based materials, continues to invest in rural Barnwell, S.C.
Question: How would a community development entity (CDE) calculate the redemption test for making distributions if the CDE is treated as a partnership or elects to be treated as a corporation for federal tax purposes?
The Community Reinvestment Act (CRA) of 1977 provides a framework for financial institutions, state and local governments and community organizations to promote banking services to all members of a community.
Modernizing Community Reinvestment Act (CRA) rules presents both threats and opportunities for community development, which under CRA includes affordable housing, economic development, neighborhood stabilization and revitalization, community services, and disaster area recovery.
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The Community Development Financial Institutions Fund released a summary report and data file Dec. 18, 2018, on new markets tax credit (NMTC) investments from fiscal year (FY) 2003-2016. Through FY 2016, NMTC allocatees disbursed $44.4 billion in qualified equity investment proceeds toward more than 5,300 NMTC investments. Of those NMTC investments, 57.8 percent were non-real estate qualified active low-income community businesses (QALICBs) or operating businesses, 40.9 percent were real estate QALICBs and 1.4 percent were beneficiaries of loans or investments made by community development entities (CDEs) through other unrelated CDEs without allocations. The report and data file are available at www.newmarketstaxcredits.com.
The Solar Energy Industries Association (SEIA) issued a statement Dec. 19, 2018, following the passage of a landmark bill in Washington, D.C. The Clean Energy D.C. Omnibus Act of 2018 will move the district to 100 percent renewable electricity by 2032. Abigail Ross Hopper, SEIA’s president and CEO, said in a press release that it’s noteworthy that this bill helps ensure solar energy is accessible to all residents in Washington, D.C., including low-income residents, which is a priority for SEIA.
Rep. Dwight Evans, D-Pa., introduced a bill Jan. 7 to allow rehabilitation expenses on older public school buildings to qualify for the federal historic tax credit (HTC). H.R. 158 would remove the prior-use restriction from the HTC that makes it impossible for local governments to collaborate with private developers on school renovations. Similar legislation was proposed in 2012. The bill is available at www.historictaxcredits.com.
The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Veterans Affairs announced Dec. 11, 2018, a second round of funding to help provide housing for veterans and their families. The funding was provided through the HUD-Veterans Affairs Supportive Housing (HUD-VASH) program. HUD-VASH vouchers were available to those experiencing homelessness in six states and the District of Columbia. A total of 424 vouchers were provided to local public housing agencies in California, Hawaii, Idaho, New Mexico, Oregon, Washington and the District of Columbia.
The Ohio Housing Finance Agency issued a memo Dec. 12, 2018, announcing the due date of the 2018 annual owner certifications and tenant data. Owners must submit these documents by March 1. This includes low-income housing tax credit (LIHTC) properties that have completed the first 15 years of the compliance period and are required to submit tenant data on all rental activity for the reporting year. The owner is required to submit tenant data and annual certification for any property qualified during the 2018 reporting period. Lastly, if a property was sold during the reporting period, the owner of record at the end of the reporting period is responsible for annual reporting.