Novogradac Journal of Tax Credits Volume 12 Issue 9
Abridged version of the September 2021 issue of the Novogradac Journal of Tax Credits. For more content, please subscribe to the Journal.
Articles
Today, 38 states have their own historic tax credit (HTC) incentive. State tax incentives have been a vital resource used by developers to fill financing gaps for historic rehabilitation projects because of the higher overall development costs of historic rehabilitation as compared to new construction. Historic preservation has also proven to be extremely beneficial to states in terms of job creation, increased property values and the generation of new state and local tax revenue.
The Internal Revenue Service (IRS) released IRS Notice 2021-12 in January to extend through Sept. 30 the temporary relief provisions outlined in IRS Notice 2020-53. One of the provisions of this relief was that if a common area or amenity is temporarily unavailable due to COVID-19 and not due to other reasons, the temporary closure does not result in a reduction of the eligible basis of the building.
Investment in opportunity zones (OZs) continued to grow in the first half of 2021, with qualified opportunity funds (QOFs) tracked by Novogradac surging past $17.5 billion in equity raised.
The COVID-19 pandemic has had a varied effect on the historic rehabilitation community.
Developers looking to complete successful historic rehabilitation of properties funded with historic tax credit (HTC) equity face many challenges, not the least of which is lining up sufficient sources of funding to make the project financially feasible.
News Briefs
New markets tax credits news briefs for September, 2021, including a CRA and a project update.
Historic tax credit news briefs for September, 2021, including federal- and state-level updates.
Renewable energy news briefs for September, 2021, including an IRS guidance notice and project updates.
Department of Housing and Urban Development news briefs for September, 2021.
Property compliance news briefs for September, 2021, including updates from New Hampshire, Ohio, and several national organizations.