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Novogradac Journal of Tax Credits Volume 4 Issue 6

The June 2013 issue of the Novogradac Journal of Tax Credits

Journal cover June 2013

Articles

Michael J. Novogradac

Saturday, June 1, 2013

Last month, Senate Finance Committee Chairman Max Baucus, D-Mont., and House Ways and Means Committee Chairman Dave Camp, R-Mich., teamed up to launch TaxReform.gov, a website dedicated to obtaining input on tax reform. Developed in partnership with the Joint Committee on Taxation, TaxReform.gov will serve as a platform for the public to weigh in on tax reform. Input from visitors to the web site will be valuable to the Senate Finance Committee and House Ways and Means Committee as they craft legislation.

Sean B. Leonard

Saturday, June 1, 2013

The parties to low-income housing tax credit (LIHTC) developments negotiate various agreements governing their relationship. Most notably, the partnership agreement sets forth key agreements between the general partner and investor. For example, the parties negotiate funding conditions, credit adjusters, guaranties (completion, deficit funding, etc.), reserves, repurchase, transfer restrictions, and exit strategies, to name a few. This article, in which we review typical exit provisions in partnership agreements, is the third in a series examining issues and challenges facing participants as the project approaches the end of its tax credit compliance period.

Teresa Garcia

Saturday, June 1, 2013

New York Gov. Andrew Cuomo signed a 2013-2014 budget bill March 28 that extended the state historic rehabilitation tax credit (HTC) program through 2019. Senate Bill 2609D maintains the 20 percent state HTC and $5 million project cap for commercial rehabilitation projects. While the state credit still cannot be bifurcated from the federal credit, the legislation will allow it to be refundable for projects certified beginning in 2015. After 2019, in the absence of further legislation, the credit reverts to its original 2006 programmatic format: a 6 percent credit and a $100,000 per-project cap. The state budget bill also extended the owner-occupied residential property rehabilitation tax credit through 2019, but no other changes were made to that program.

Teresa Garcia

Saturday, June 1, 2013

The Community Development Financial Institutions (CDFI) Fund in April awarded $3.5 billion in new markets tax credit (NMTC) authority to 85 community development entities (CDEs) in the program’s tenth allocation round. The NMTC had been allowed to expire in 2011 but was one of the key tax credit provisions reauthorized by Congress last January under H.R. 8, the American Taxpayer Relief Act of 2012. Legislators extended the NMTC program for two years and provided a maximum annual amount of qualified equity investments of $3.5 billion each year. The CDFI Fund opened the application process for the tenth round in July 2012 despite the program not being reauthorized until about six months later.


News Briefs

Saturday, June 1, 2013

The National Council of State Housing Agencies (NCSHA) released a statement to the House Ways and Means Committee in response to the call for comments on tax code provisions. In the letter, NCSHA discussed the importance of low-income housing tax credits (LIHTCs) and tax-exempt housing bond programs...

Saturday, June 1, 2013

In April, the U.S. Department of Housing and Urban Development (HUD) issued, “Notice on Service Animals and Assistance Animals for People with Disabilities in Housing and HUD-Funded Programs.” ...

Saturday, June 1, 2013

Missouri’s legislature adjourned last month without passing Missouri S.B. 112, which had been referred to the House rules committee. Sponsored by Rep. Scott T. Rupp, S.B. 112 would extend the Missouri New Markets Development program for another six years. The new markets tax credit (NMTC) program is set to expire this year...

Saturday, June 1, 2013

Ohio H.B. 135, introduced in April by Reps. Dorothy Pelanda and Jack Cera, amends certain sections of the revised code to authorize a nonrefundable credit against the income tax and certain business taxes for the rehabilitation of a vacant industrial site...

Saturday, June 1, 2013

The U.S. Department of Housing and Urban Development (HUD) and the Department of Justice (DOJ) released notice HUD No. 13-055 in April. The document concerns new guidance on the “Design and Construction” requirements under the Fair Housing Act, specifically that multifamily housing be designed and constructed ...

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