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Novogradac Journal of Tax Credits Volume 5 Issue 10

The October 2014 issue of the Novogradac Journal of Tax Credits

Journal cover October 2014

Articles

Michael J. Novogradac

Wednesday, October 1, 2014

Most predictions about what Congress will accomplish during the remainder of the year are humble, to say the least. Among other issues, the combined uncertainty about the outcome of November’s midterm elections and the financial pressure created by continued discussions about comprehensive tax reform have reportedly narrowed Congress’s focus for the rest of 2014.

Peter Lawrence

Wednesday, October 1, 2014

Congress adjourned Sept. 19 and won’t return to Washington, D.C. until after the November election. Before leaving as expected, Congress passed a stopgap government funding bill, the continuing resolution (CR), to keep the government going and programs funded at their fiscal year (FY) 2014 levels until Dec. 11, which is 11 weeks into FY 2015. Depending on how the election affects control of the Senate, Congress will return Nov. 12 to consider whether to further extend the FY 2015 CR to mid-February or early March, or pass an omnibus spending bill for the entire FY 2015.

Colette Drexel and Semra Guler

Wednesday, October 1, 2014

The 2014 New Markets Tax Credit (NMTC) allocation application is was due Oct. 1 for the 12th round of NMTC credit authority, pending congressional reauthorization of the program. In light of the current buzz of community development entity (CDE) activity in applying for NMTC awards, now seems an appropriate time to look back and assess prior NMTC award cycles from 2002 – 2013 and the levels of qualified equity investments (QEIs) made with these past awards.

Marc Schultz

Wednesday, October 1, 2014

It’s no secret that the usual suspects in the world of tax credit investing tend to be large financial institutions. One of the reasons for this is that certain limitations in the Internal Revenue Code (IRC) such as the “at-risk” rules and the “passive activity loss and credit” rules don’t apply to these organizations because they are widely-held C corporations for federal income tax purposes (i.e., they aren’t closely-held C corporations (CHCs)). Both the at-risk rules and the passive activity loss and credit rules provide limitations that make it difficult for everyone else in the universe except for these widely-held C corporations to utilize the investment tax credits (ITCs) in IRC Section 48.


News Briefs

Wednesday, October 1, 2014

On Aug. 21, the Internal Revenue Service (IRS) released Revenue Procedure 2014-49 and Revenue Procedure 2014-50. Both documents provide guidance about temporary disaster relief for qualified developments that were financed with low-income housing tax credits (LIHTCs) or tax-exempt bonds...

Wednesday, October 1, 2014

On Aug. 29, Julián Castro, the U.S. Department of Housing and Urban Development (HUD) secretary, and Inspector General David A. Montoya, sent an internal letter to staff on strengthening both accountability for HUD and the collaboration with the Office of the Inspector General (OIG)...

Wednesday, October 1, 2014

The CDFI Fund published Aug. 28 an updated version of its 2014 Application FAQs NMTC Program–Allocation Application Frequently Asked Questions, supplemental guidance for applicants on the calendar year 2014 new markets tax credit (NMTC) program. ...

Wednesday, October 1, 2014

In mid-August, the U.S. Department of Energy (DOE) released the 2013 Distributed Wind Market Report and the 2013 Wind Technologies Market Report. The report quantified and summarized the 2013 U.S. distributed wind market. DOE said the information could help plan...

Wednesday, October 1, 2014

On Aug. 11, the Maryland Department of Housing and Community Development adopted amendments to the Neighborhood and Community Assistance Program tax credits regulations. The amendments authorize the department to give priority to designated neighborhood...

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