Novogradac Journal of Tax Credits Volume 11 Issue 3

Question: What steps can community development entities (CDEs) do now to prepare for the 2020 new markets tax credit (NMTC) allocation application round?Answer: A lot. CDEs can take advantage of the time before the 2020 NMTC allocation application is released to read, review, update and evaluate their previous application in preparation for the upcoming allocation round.

With receipt of the final regulations from the Treasury Department, taxpayers have sufficient guidance to structure opportunity zones (OZ) investments with confidence.

Measuring the impact of new markets tax credit (NMTC) transactions is difficult, but important.

Past performance is no guarantee of future results. However, lessons can still be learned by studying history.

President Donald J. Trump’s fiscal year 2021 budget proposal, once again, asks for more infrastructure spending.

Rep. Tom Reed, R-N.Y., Jan. 9 introduced the Energy Sector Innovation Credit Act of 2019. H.R. 5523 is bipartisan and would create a technology-neutral tax credit for clean energy and storage as well as a production tax credit (PTC). The technology-neutral incentive would cover 30 percent of the basis of any qualified emerging energy property placed in service during a taxable year.

Legislation was introduced Jan. 14 in the New Jersey state Senate to create a 25 percent state historic tax credit (HTC) for homeowners and business owners. S. 412 would create a business owner HTC that would be taken against the corporation or business tax or insurance premium tax liabilities.

Four senators introduced bipartisan legislation Jan. 8 that would require that 10 percent of the annual new markets tax credit (NMTC) allocation be made to community development entities (CDEs) for investment in developments in Indian and Native lands. Sens. Lisa Murkowski, R-Alaska; Dan Sullivan, R-Alaska; Brian Schatz, D-Hawaii; and Mazie Hirono, D-Hawaii, introduced the Inspiring Nationally Vibrant Economies Sustaining Tribes Act of 2020, which defines what CDEs must do to meet requirements to receive allocations and provides a definition for Native community development financial institutions.

The U.S. Department of Housing and Urban Development (HUD) published guidance Jan. 28 on assessing a person’s request to have assistance animal as a reasonable accommodation under the Fair Housing Act (FHA). Under the FHA, residents with disabilities may request a reasonable accommodation for service animals or other assistance animals, including support animals.

A private letter ruling from the Colorado Department of Revenue concluded that the state law for partnerships formed for investment in federal and state low-income housing tax credit (LIHTC) developments follows the federal law.