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Novogradac Journal of Tax Credits Volume 5 Issue 11

The November 2014 issue of the Novogradac Journal of Tax Credits

Journal cover November 2014

Articles

Michael J. Novogradac

Saturday, November 1, 2014

When the tax credit community broaches the topic of tax reform, the conversation is often focused on survival. But what if we look at tax reform as an opportunity to not only survive, but thrive? While the threat of tax reform still looms and the community development and affordable housing communities shouldn’t be complacent, tax reform legislation also may provide an opportunity to implement ideas to enhance tax credits that could make them even more successful. A few ideas for enhancement are described below.

Dirk Wallace

Saturday, November 1, 2014

On Sept. 18, the Internal Revenue Service (IRS) released a final draft of the revised audit technique guide (ATG) for the Low-Income Housing Tax Credit (LIHTC) program. A draft ATG was released for public comment Dec. 19, 2013. The ATG was originally created to provide guidance for IRS examiners to audit owners of LIHTC properties, and the revised draft represents the first substantial update to the ATG since 1999.

Tom Fantin

Saturday, November 1, 2014

Question: Are seller-financed promissory notes considered nonqualified financial property for new market tax credit (NMTC) purposes?Answer: It depends.One of the requirements that a business entity must meet to constitute a qualified active low income community business (QALICB) under Internal Revenue Code (IRC) Section 45D is that “less than 5 percent of the average of the aggregate unadjusted bases of the property of such entity is attributable to nonqualified financial property.” The term nonqualified financial property is defined generally as debt, stock, partnership interests, options, futures contracts, forward contracts, warrants, notional principal contracts, annuities, and other similar property specified in regulations.

Forrest D. Milder

Saturday, November 1, 2014

The February column, “Historic Tax Credit Guidance Holds Significance for Renewable Energy Industry,” discussed Revenue Procedure 2014-12, often referred to as the “historic credit safe harbor” and its relevance for renewable energy developments. Rev. Proc. 2014-12 provided approximately 20 tests. Meeting the requirements of all of those tests gives confidence to investors in partnerships (or LLCs) that invest in historic tax credit projects that the Internal Revenue Service IRS won’t challenge their status as partners for federal income tax purposes.


News Briefs

Saturday, November 1, 2014

On Oct. 3, the U.S Department of Housing and Urban Development (HUD) published the fiscal year (FY) 2015 fair market rents (FMRs). HUD uses FMRs to determine payment standard amounts for the Housing Choice Voucher program...

Saturday, November 1, 2014

On Oct. 2, the U.S. Department of Housing and Urban Development (HUD) released a notice establishing the operating cost adjustment factors (OCAFs) for 2015...

Saturday, November 1, 2014

On Sept. 29, California Gov. Jerry Brown vetoed A.B. 1399, the state new markets tax credit (NMTC) bill. In his veto message, Brown said that the bill, over time, would cost $200 million...

Saturday, November 1, 2014

On Sept. 18 Reps. Earl Blumenauer, D-Ore., and Dave Loebsack, D-Iowa, and 16 colleagues introduced the Bridge to a Clean Energy Future Act of 2014 (H.R. 5559). The bill would extend the production tax credit (PTC) for wind energy through 2016...

Saturday, November 1, 2014

On Sept. 8, the New Hampshire Department of Revenue Administration issued New Hampshire Technical Information Release 2014-005 (TIR 2014-005) concerning the New Hampshire Business Enterprise Tax...

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