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Novogradac Journal of Tax Credits Volume 2 Issue 7

The July 2011 issue of the Novogradac Journal of Tax Credits.

Journal cover July 2011


Michael J. Novogradac

Friday, July 1, 2011

On June 3, the Treasury Department and the Internal Revenue Service proposed changes to the new markets tax credit (NMTC) program. The proposed modifications to the credit are intended to promote greater investment in non-real estate businesses under the New Markets Tax Credit program while still maintaining the structure of the credit, which has been successful for other types of investments.

Jennifer Dockery

Friday, July 1, 2011

While the mid-December reauthorizations of the Section 1603 grant in lieu of investment tax credits and the reauthorization of the new markets tax credit (NMTC) program were last year’s tax credit nail biters, state legislatures held developers and investors in limbo this year, as lawmakers fought pitched battles over state-level tax credit programs. As the Journal of Tax Credits went to press, many state legislatures had wrapped up or were winding down their sessions for the summer. They left in their wake a changed landscape of tax incentives for developers and investors. Read on to learn about some of the state-level changes that could affect your next project.

Jennifer Hill

Friday, July 1, 2011

Within six months of publishing in late 2010 a special 10th anniversary report that chronicled the New Markets Tax Credit (NMTC) program’s efficacy in deploying capital to distressed communities, the New Markets Tax Credit Coalition announced that a cross-section of community development entities (CDEs) invested a whopping $4.4 billion through the program in 2010 alone. The Coalition’s 2011 NMTC Progress Report also revealed that 96 percent of the CDEs’ 2010 investment activity has occurred in communities with at least one more factor of higher economic distress than that required by law.

Thomas Boccia

Friday, July 1, 2011

Question: What is the EB-5 program and is it a viable source of equity for an historic tax credit project?

Thomas Stagg

Thursday, July 1, 2010

The U.S. Department of Housing and Urban Development (HUD) on May 31 released income limits for 2011. HUD continued its policy of releasing one set of income limits to be used for Section 8 and other HUD programs (the Section 8 Income Limits) and a second set of income limits for tax credit and tax-exempt bond projects, also called Multifamily Tax Subsidy Projects (MTSPs).

News Briefs

Friday, July 1, 2011

The Internal Revenue Service (IRS) is soliciting comments concerning the low-income housing tax credit (LIHTC) regulations for federally assisted buildings.

Friday, July 1, 2011

Mississippi Home Corporation (MHC) has issued guidance to assist low-income housing tax credit (LIHTC) property owners who wish to provide housing to victims displaced by recent river flooding.

Friday, July 1, 2011

HUD Deputy Secretary Ron Sims announced that he will retire from public service at the end of this month to return to his Seattle, Wash. home.

Friday, July 1, 2011

A federal appeals court has denied a motion to reconsider the 4th U.S. Circuit Court of Appeals decision in Virginia Historic Tax Credit Fund v. Commissioner of Internal Revenue.

Friday, July 1, 2011

Building America CDE Inc., a subsidiary of the AFL-CIO Housing Investment Trust (HIT), was recently awarded $35 million in new markets tax credit (NMTC) authority and says it has engaged in talks about deploying part of its allocation to help finance the McGinley Square community redevelopment project in Jersey City, N.J.

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