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Novogradac Journal of Tax Credits Volume 5 Issue 3

The March 2014 issue of the Novogradac Journal of Tax Credits

Journal cover March 2014


Michael J. Novogradac

Saturday, March 1, 2014

The chairman of the Senate Finance Committee wields substantial influence because of the committee’s role in taxation matters, among other issues. Considering the increasing consensus about the need for tax reform, this is especially true today. With the Feb. 6 confirmation of one of the driving forces behind recent tax reform efforts, Senate Finance Committee Chairman Max Baucus, D-Mont., as the U. S. ambassador to China, it’s widely believed that the next chairman could play a key role in shaping the future tax code.

Armand Domalewski

Saturday, March 1, 2014

Now that the U.S. Department of Housing and Urban Development (HUD) has implemented its 2014 rent and income limits, developers, investors and other low-income housing tax credit (LIHTC) stakeholders have an opportunity to re-examine the challenges posed by the gap between many areas’ income limits under the Internal Revenue Service’s hold harmless policy and those published in HUD’s Multifamily Tax Subsidy Projects (MTSP) income limits. IRS “hold harmless” rules protect LIHTC properties from falling rents; however, in areas of declining or slow income growth, the rules don’t provide the necessary rent and income limit growth that LIHTC property owners need to ensure the financial viability of their developments.

John Sciarretti

Saturday, March 1, 2014

Question: Can a business rely upon proof of an individual customer’s participation in other federal programs targeted specifically to low-income individuals and families (e.g., Medicaid) as a proxy for income documentation under the targeted population rules?Answer: It may be possible, but issues related to timing would pose challenges.

John M. Tess

Saturday, March 1, 2014

Since 1976, federal tax incentives have been provided to encourage developers to rehabilitate historic properties rather than replace them. Over the years, the preservation tax incentives program has seen significant changes in incentives. The current federal historic preservation tax incentives program provides a 20 percent historic perseveration tax credit (HTC) for qualified rehabilitation expenditures (QREs) incurred by property owners rehabbing certified historic structures for nonresidential or residential rental uses. A 10 percent HTC is available for older buildings placed in service prior to 1936. In addition, because of the success of the federal program, many local and state incentives have been created throughout the country to assist in rehabilitating historic buildings.

News Briefs

Wednesday, June 12, 2019

The Louisiana Department of Revenue released revenue information bulletin No. 14-005 on Jan. 2. Bulletin 14-005 addresses individual, fiduciary and corporation income, and franchise taxes in the Louisiana Tax Credit Registry. The bulletin states that transferable tax credits granted on or after Jan. 1 to be applied against taxes collected...

Saturday, March 1, 2014

The U.S. Department of Housing and Urban Development (HUD) is soliciting comments on quality control for rental assistance subsidy determinations. In a notice published on Nov. 18, HUD announced that it is conducting a study to update its estimates of the extent and type of errors...

Saturday, March 1, 2014

The Community Development Financial Institutions (CDFI) Fund announced on Dec. 20 that the Bank of New York Mellon (BNY Mellon), a global investment company, will be the master servicer/trustee for the CDFI Bond Guarantee program. BNY Mellon will provide custodial, loan administration, servicing, monitoring and other...

Saturday, March 1, 2014

On Dec. 19, the Internal Revenue Service (IRS) released a draft audit technique guide (ATG) for the low-income housing tax credit (LIHTC) program. The guide was prepared to assist IRS examiners with auditing taxpayers, usually partnerships, owning IRC §42 lowincome housing projects ..

Saturday, March 1, 2014

The Novogradac Rent & Income Calculator © has been updated to include the U.S. Department of Housing and Urban Development’s (HUD’s) income limits for fiscal year (FY) 2014. Income limits are used to determine income eligibility for HUD’s assisted housing program...

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