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Novogradac Journal of Tax Credits Volume 5 Issue 4

The April 2014 issue of the Novogradac Journal of Tax Credits

Journal cover April 2014

Articles

Michael J. Novogradac

Tuesday, April 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

Tuesday, April 1, 2014

Operating expenses between 2010 and 2012 for low-income housing tax credit (LIHTC) properties increased at an annual rate of 2.92 percent between 2010 and 2012, according to a report released by Novogradac & Company LLP, “Novogradac Multifamily Rental Housing Operating Expense Report—Survey and Analysis for LIHTC Properties.” Operating expenses for all multifamily rental properties, including market-rate developments, grew at an annual rate of 2.39 percent during the same period.

Brent R. Parker

Tuesday, April 1, 2014

Question: When is a loan receivable considered impaired for generally accepted accounting principles (GAAP) purposes and how does the impairment affect a company’s financial statements?Answer: A company, typically a community development entity (CDE) or subsidiary CDE that has made a qualified low-income community investment in the form of a loan to a qualified active low-income community business, should consider a loan impaired for GAAP purposes when, based on current information or factors, it is probable that the company will not collect the principal and interest payments according to the loan agreement.

John Leith-Tetrault

Tuesday, April 1, 2014

It’s the law of unintended consequences. Interventions in complex systems tend to have outcomes contrary to their original intent. The widely applauded historic tax credit (HTC) Revenue Procedure 2014-12, as carefully drafted as it was, has one unintended consequence that has HTC industry lawyers hotly debating solutions: how to best structure a twinned HTC and new markets tax credit (NMTC) transaction to meet the new guidance.


News Briefs

Tuesday, April 1, 2014

The Low and Moderate Income Housing Act of 2014 (H.R. 4130), was introduced on Feb. 28. The bill would amend the Internal Revenue Code (IRC) to read that a property meets the requirements if 50 percent or more of the residential units in such property are both rent-restricted ...

Tuesday, April 1, 2014

The U.S. Department of Housing and Urban Development (HUD) announced on Feb. 4 its intent to conduct the American Housing Survey (AHS) for 2015 and a solicitation of comments about the process. The survey will be conducted with a new national sample and up to...

Tuesday, April 1, 2014

On Feb. 14, Kentucky Governor Steve Beshear introduced the “Kentucky Competes” tax reform plan. Supporters say this plan, which would modernize the state’s tax code, would strengthen the state’s ability to create jobs, expand existing industry and ensure a healthier...

Tuesday, April 1, 2014

On Feb. 6, Sens. Michel F. Bennet, D-Colo., and Dean Heller, R-Nev., introduced the Renewable Energy Parity Act of 2014 (S. 2003), the bill would extend the renewable energy credit to include solar energy property under construction. Currently, a property must have a placed-in-service date of Dec. 31, 2016 in order to qualify for the...

Tuesday, April 1, 2014

Wisconsin S.B. 449 was enrolled on Feb. 24 and permits the Wisconsin Economic Development Corporation (WEDC) to approve transfers of economic development tax credits between corporate taxpayers, under certain conditions. S.B. 449 allows for the transfer of up to $15 million in tax...

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