Novogradac Journal of Tax Credits Volume 12 Issue 4

The U.S. Department of the Treasury released updated frequently asked questions (FAQs) Feb. 22 regarding the Emergency Rental Assistance (ERA) program, providing guidance for a range of issues.

With the pandemic underscoring the need for more affordable housing, low-income housing financing resources have become even more crucial and in demand. Even the 4% low-income housing tax credit (LIHTC), once an underused resource, is now seeing a surge in demand in many states–due in part to a new minimum 4% LIHTC rate enacted in December 2020.

The opportunity zones (OZ) incentive was created to drive capital into low-income communities across the United States. One year into the global COVID-19 pandemic, the OZ incentive is more vital than ever.

Under the opportunity zones (OZ) incentive, taxpayers are able to defer capital gains through investment into a qualified opportunity fund (QOF) that subsequently invests in qualified OZ property.

As we head into the second quarter of 2021 and (hopefully) begin to emerge from the COVID-19 pandemic, now is the time for investors and fund managers to give their qualified opportunity funds (QOFs) a 10-point midyear checkup. Investing in opportunity zones (OZs) can generate substantial tax benefits, but only if QOFs and their investee businesses satisfy statutory and regulatory tax requirements.

Reps. Terri Sewell, D-Alabama; Tom Reed, R-New York; and Sens. Ben Cardin, D-Maryland; and Roy Blunt, R-Missouri; Feb. 25 introduced House and Senate versions of the New Markets Tax Credit (NMTC) Extension Act of 2021.

Bills introduced in the Tennessee Legislature in early February would establish a state historic tax credit (HTC) worth 25% of qualified rehabilitation expenditures, with a 5% bonus for properties in specially designated areas.

Rep. Mike Thompson, D-California, and 24 co-sponsors reintroduced the Growing Renewable Energy and Efficiency Now (GREEN) Act Feb. 4. T

The Mississippi Home Corporation (MHC) announced Feb. 23 the annual owner’s certification  report package to be completed by all owners of developments that received an award of low-income housing tax credits.

Legislation introduced in the Montana House of Representatives Feb. 11 would create a state workforce housing tax credit that could be paired with the federal low-income housing tax credit for tax years beginning on or after Jan. 1, 2022.