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Novogradac Journal of Tax Credits Volume 10 Issue 8
Abridged version of the August 2019 issue of the Novogradac Journal of Tax Credits. For more content, please subscribe to the Journal.
Articles
Two public housing properties in New Jersey received substantial upgrades, thanks to the U.S. Department of Housing and Urban Development’s (HUD’s) Rental Assistance Demonstration (RAD) program.
With five months remaining in the year, it is time to start thinking about tax-planning strategies, especially for owners of low-income housing tax credit (LIHTC) properties. Outlined below are some items to consider as 2020 approaches.
Clarity may be coming for the Community Reinvestment Act (CRA).
“I think there’s a little bit more clarity than there was several months ago,” said Buzz Roberts, president and CEO of the National Association of Affordable Housing Lenders. “It appears that the principals at the federal banking agencies are talking regularly and the staff are working hard to find common ground.”
Since the federal opportunity zones (OZ) incentive was introduced during 2017 tax reform and was codified in Internal Revenue Code Sections 1400Z-1 and -2, the Treasury Department and Internal Revenue Service (IRS) published 243 pages of regulatory guidance (including preamble material), Revenue Procedure 2018-16, Revenue Ruling 2018-29 and IRS Form 8996 with instructions.
Oct. 1 is a big day for tax extenders.
There are a variety of ways to extend crucial expiring or expired tax incentives–which most notably include the new markets tax credit (NMTC), the renewable energy production tax credit (PTC), and the Internal Revenue Code Section 179D and Section 45L energy efficiency incentives–but tying extensions to must-pass legislation is the most obvious.
News Briefs
The Ohio Development Services Agency (OSDA) announced the 22nd round of state historic preservation tax credit awards June 26. More than $28 million in awards went to 28 developments throughout the state. Funding will rehabilitate 49 historic buildings. ODSA received more than 50 applications totaling more than $60 million in funding requests.
The Rural Jobs Act was introduced June 27 in the House and Senate to authorize an additional $500 million in annual new markets tax credit (NMTC) allocation for 2019 and 2020 that would go to rural job zones. Those zones are defined as low-income communities with a population of 50,000 residents or less that are not adjacent to any urbanized area. At least 25 percent of the new NMTC allocation authority would be prioritized for counties with persistent poverty and high migration. Lead sponsors of the bicameral and bipartisan legislation are Reps. Terri Sewell, D-Ala., and Jason Smith, R-Mo., and Sens. Mark Warner, D-Va., Roger Wicker, R-Miss., Shelley Capito, R-W.V., and Ben Cardin, D-Md. Both versions of the bill are available at www.newmarketscredits.com.
Legislation introduced June 25 in both chambers of Congress would extend the 30 percent renewable energy investment tax credit (ITC) through 2025 for offshore wind. The Offshore Wind Incentives for New Development Act would allow offshore wind projects to receive the ITC if they begin construction before Jan. 1, 2026. The ITC is currently scheduled to phase down to 10 percent in 2022. Six senators co-sponsored the legislation, while Rep. Jim Langevin, D-R.I., sponsored the bill in the House. The bill is available at
www.energytaxcredits.com.
The U.S. Department of Housing and Urban Development (HUD) published a notice June 12 announcing the monthly per-unit fee rates used to determine administrative fees for each public housing agency that administers certain HUD programs. The fees involve the Housing Choice Voucher and Moderate Rehabilitation programs for calendar year 2019 (CY 2019). HUD provided two charts: one for the first 7,200 voucher units leased in CY 2019, the second for the remainder of the units. The notice is available at www.hudresourcecenter.com.
The Mississippi Home Corporation issued a memo June 5 to developers, owners and management agents of low-income housing tax credit properties regarding its website. Due to a lack of funding, the website was deactivated May 31.