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Novogradac Journal of Tax Credits Volume 5 Issue 8

The August 2014 issue of the Novogradac Journal of Tax Credits

Journal cover August 2014

Articles

Michael J. Novogradac

Friday, August 1, 2014

Ensuring that low-income housing tax credits (LIHTCs) and new markets tax credits (NMTCs) are preserved during tax reform remains the top priority of affordable housing and community development stakeholders.

Forrest D. Milder

Friday, August 1, 2014

A number of “rules of thumb” are often used in renewable energy tax credit equity transactions. It’s worthwhile to know the source of those rules, so you can better judge when it may be OK to bend or break a few of them—as long as your investor is willing. Remember the “Golden Rule” of investing: “He who has the gold makes the rules!”

James R. Kroger

Friday, August 1, 2014

Question: Can I exclude the income of a separated spouse who is a live-in aide when determining a household’s eligibility for a low-income housing tax credit (LIHTC) property?Answer: Generally, yes, you can exclude the income of a separated spouse if s/he meets the requirements to be a live-in aide listed below.

John Leith-Tetrault

Friday, August 1, 2014

Efforts to provide an indefinite extension of the New Markets Tax Credit (NMTC) program have run into a predictable Washington, D.C., hurdle: partisan politics.The NMTC isn’t particularly a divisive political issue and indeed has a longstanding bipartisan pedigree, but political realities make it more difficult to pass legislation to extend the credit–even with broad support. There is urgency to do so, because NMTC allocations end after the 2019 round, which is expected to open for applications later this year. That will come as the five-year extension from the Protecting Americans from Tax Hikes (PATH) Act in late 2015 completes its course.Community development supporters are working to continue momentum from the last session of Congress, when a record number of members of the House and Senate co-sponsored bills for NMTC permanence. New bills were introduced in the new Congress this year as H.R. 1680 and S. 750. Both call for permanence, an inflation adjustment for allocation authority and the ability to offset the alternative minimum tax (AMT).The combination of an expiring community development tax incentive, recent tax reform legislation, a toxic political atmosphere and a looming presidential election make the path to renewal of the NMTC–which was never simple–more complicated than ever. A tax incentive that has been extended five times since it was created in 2000 faces big hurdles in 2019.History and a brief look at the political realities are in order.History of


News Briefs

Friday, August 1, 2014

On June 12, the Community Development Financial Institutions (CDFI) Fund announced that it approved Stonehenge Community Development LLC as a qualified issuer for the CDFI Bond Guarantee program. If the U.S. Department of the Treasury approves Stonehenge’s ...

Friday, August 1, 2014

On June 16, the National Park Service announced the approval of federal rehabilitation tax credits (HTCs) for Birmingham School of Law’s new campus, in Birmingham, Ala. The Birmingham School of Law moved into a former German Auto building that was ...

Friday, August 1, 2014

From June 24 through July 14, the Wisconsin Economic Development Corporation (WEDC) placed a moratorium on the state historic tax credit (HTC) program because of higher than anticipated demand. Original estimates projected the first year of the HTC would result in an ...

Friday, August 1, 2014

On June 10, South Carolina Gov. Nikki Haley signed an amendment to H.B. 3644 that renames the Renewable Tax Credit Incentive program as the South Carolina Clean Energy Tax Incentive program. H.B. 3644 also extends the tax credit until Dec. 31, 2020, from its previous end date...

Friday, August 1, 2014

On June 13, the U.S. Department of Housing and Urban Development (HUD) announced $70 million available through the Indian Community Development Block Grant (ICDBG) program for Alaskan Native Villages and Indian Tribes. Funding will go towards improving...

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