Novogradac Journal of Tax Credits Volume 10 Issue 4
Abridged version of the April 2019 issue of the Novogradac Journal of Tax Credits. For more content, please subscribe to the Journal.
Cleveland’s Ohio City neighborhood is a diverse and vibrant community that experienced a steady increase in investment activity in recent years.
After two-and-half years of planning, U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson announced the expansion of the low-income housing tax credit (LIHTC) pilot program to include new construction and substantial rehabilitation projects under the Section 221(d)4 and Section 220 loan programs at the National Association of Homebuilders’ Show in February.
The opportunity zones (OZ) incentive can be used across the country: in downtowns, rural areas, former military bases and in universities, among many other places.
Whether it’s considered another device in the toolbox or a game-changing incentive, there is major interest in the federal opportunity zones (OZ) incentive.
Opportunity zones (OZs) are a federal tax incentive that has generated unprecedented levels of interest among investors and have enormous potential local and regional impact.
Legislation was introduced March 12 in both the House of Representatives and the U.S. Senate to reauthorize and make permanent the new markets tax credit (NMTC). The New Markets Tax Credit Extension Act of 2019 would also include an inflation adjustment to the annual NMTC allocation authority and the ability to offset the alternative minimum tax. H.R. 1680 was introduced by Reps. Tom Reed, D-N.Y., Terri Sewell, D-Ala., and 16 other members of the House Ways and Means Committee, while the Senate version, S. 750, was introduced by Sens. Ben Cardin, D-Md., and Roy Blunt, R-Mo. The NMTC is currently authorized through 2019.
Sens. Chuck Grassley, R-Iowa, and Ron Wyden, D-Ore., introduced legislation Feb. 28 to retroactively extend through 2019 tax provisions that expired in 2017 and 2018, including two renewable energy provisions. The Tax Extender and Disaster Relief Act of 2019 includes the Section 45L credit for energy efficient homes and the Section 179D energy-efficient commercial buildings deduction. The legislation would extend 26 provisions that expired at the end of 2017 and three that expired at the end of 2018. The bill is available at www.energytaxcredits.com.
Virginia Gov. Ralph Northam signed legislation Feb. 15 to reinstate a $5 million annual taxpayer cap on the state historic tax credit (HTC), effective July 1. H.B. 2705 passed the House by a 94-2 vote and the Senate by a 25-15 margin. A $5 million cap was in effect for 2017 and 2018, but expired Jan. 1. The bill is available at www.historictaxcredits.com.
The U.S. Department of Housing and Urban Development’s (HUD’s) Office of Community Planning and Development issued Feb. 25 a notice with instructions for when jurisdictions should submit their fiscal year 2019 national Housing Trust Fund (HTF) allocation plans. CPD-19-01 also includes revised submission dates for the Community Development Block Grants, Emergency Solutions Grants, HOME Investment Partnership and Housing Opportunities for Persons With AIDS programs. HUD will not execute a HTF grant agreement until it receives the agency’s HTF allocation plan with the actual HTF allocation. Fannie Mae and Freddie Mac recently announced that $245 million would be available for the HTF in 2019 and HUD anticipates announcing each state’s HTF allocation in April. The notice is available at www.hudresourcecenter.com.
The California Tax Credit Allocation Committee posted a resyndication questionnaire and memorandum Feb. 8 for developments requesting a new reservation of low-income housing tax credits (LIHTCs). The questionnaire must be submitted for those who have existing LIHTC properties and are applying for a new allocation. The memo is available at www.taxcredithousing.com.