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Novogradac Journal of Tax Credits Volume 4 Issue 7

The July 2013 issue of the Novogradac Journal of Tax Credits

Journal cover July 2013

Articles

Michael J. Novogradac

Monday, July 1, 2013

In addition to tax reform discussions in Congress that could directly alter the low-income housing tax credit (LIHTC), such as expanding the program or replacing it with an equivalent tax reduction on rental income, there are other tax reform scenarios that could have an indirect but significant impact on the ability of the program to create and preserve affordable rental housing.

Teresa Garcia

Monday, July 1, 2013

The U.S. Department of Housing and Urban Development (HUD) announced plans in April to overhaul the structure and operating model of its multifamily division. The transformation will consist of four initiatives: workload sharing; risk-based processing and underwriting in production; creating specialist support in asset management; and streamlining the headquarters and field organization model. Changes are scheduled to begin this fall and will be fully implemented by 2016.

Teresa Garcia

Monday, July 1, 2013

Although Congress reauthorized the New Markets Tax Credit (NMTC) program in January, community development entities (CDEs) say that the two-year extension and $3.5 billion annual program cap are not enough to keep up with increasing demand for the credit. Of the $21.9 billion in credit authority requested by 282 applicants for the 2012 round, the Community Development Financial Institutions (CDFI) Fund was only able to award the maximum $3.5 billion to 85 CDEs. When the Novogradac Journal of Tax Credits spoke with allocatees in May about the current state of the NMTC market, many CDEs agreed that a permanent extension of the program and increased funding would better facilitate development of catalytic community projects.

Frank Buss

Monday, July 1, 2013

Question: What are the tax implications if a historic tax credit (HTC)-financed building is destroyed by a natural disaster?Answer: If an HTC-financed building is destroyed by natural disaster, it is probable that a tax credit recapture event has occurred. According to Internal Revenue Code (IRC) Section 50(a), a recapture event of a qualified rehabilitated building occurs when one of the following takes place:


News Briefs

Monday, July 1, 2013

The National Housing Conference and Center for Housing Policy released a guide highlighting solutions to veteran homelessness in May...

Monday, July 1, 2013

The U.S. Department of Housing and Urban Development (HUD) released notice PIH–2013–11, which details the process for requesting subsidy layering reviews (SLRs)...

Monday, July 1, 2013

Sens. Roy Blunt, R-Mo., and Jay Rockefeller, D-W.Va., introduced a bipartisan bill to make the new markets tax credit (NMTC) program permanent on June 11. S. 1133 would amend the Internal Revenue Code (IRC) of 1986 to permanently extend the NMTC program...

Monday, July 1, 2013

The U.S. Department of Housing and Urban Development (HUD) published a notice in the Federal Register regarding pet ownership for the elderly or persons with disabilities in multifamily rental housing and the accumulation of deposits for costs attributable to pets...

Monday, July 1, 2013

L.B. 104, was signed into law June 5. The bill provides state tax incentives for companies that create energy from renewable sources in Nebraska...

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