Novogradac Journal of Tax Credits Volume 13 Issue 4
Abridged version of the April 2022 issue of the Novogradac Journal of Tax Credits. For more content, please subscribe to the Journal.
The opportunity zones (OZ) incentive became part of the tax code at the end of 2017 and has since led to billions of dollars of investment in low-income communities. The new rules provide a delay in the reporting of certain capital gains till 2026 (and possible reduction in tax liability in the case of investments made prior to 2022), as well as relief from taxation that would otherwise apply to a sale of a properly structured OZ investment ten or more years later.
Q: What are key elements to know about historic tax credit (HTC) direct and lease pass-through transaction structures?
In the opportunity zones (OZ) world, the significance of the working capital safe harbor (WCSH) cannot be overstated: It is arguably the single most important concept–and single most valuable tool–found in Treasury Decision 9889, the final regulations under Internal Revenue Code Section 1400Z-2.
As of the end of 2021, the 1,342 qualified opportunity funds (QOFs) tracked by Novogradac had raised $24.4 billion in equity, as reported in the Novogradac Opportunity Zones Investment Report released in February.
While the Build Back Better Act (BBBA) as it was originally intended and drafted last year is dead (including its name: expect a new bill title to emerge this month), some of proposals from it remain viable in a revised budget reconciliation bill. Democrats are about to enter a crucial phase if they hope to pass revised legislation that includes clean energy provisions and could include some housing provisions.
New market tax credits news briefs for April 2022, including guidance, CRA and report updates.
Historic tax credits news briefs for April 2022, including state legislation updates for Minnesota, Utah, West Virginia, New Jersey and more.
Renewable energy news briefs for April 2022, including private letter rulings, solar project funding and an ACPA report.
Department of Housing and Urban Development news briefs for April 2022, including notices and guidance updates.