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Novogradac Journal of Tax Credits Volume 6 Issue 12

The December 2015 issue of the Novogradac Journal of Tax Credits

Journal cover December 2015

Articles

Michael J. Novogradac

Tuesday, December 1, 2015

The election of Rep. Paul Ryan, R-Wis., as the 54th Speaker of the House set off a chain of other changes that are sure to have real implications for the nation and various communities. Perhaps the most significant change that resulted from Ryan succeeding Rep. John Boehner, R-Ohio as Speaker was the vacancy it created for the chairmanship of the House Ways and Means Committee. After a closely watched race, the House Republican Steering Committee, with Speaker Ryan’s support, on Nov. 4 selected Rep. Kevin Brady, R-Texas, to lead the committee, over Rep. Pat Tiberi, R-Ohio. The Steering Committee also selected Rep. Tom Rice, R-S.C., to fill the open seat on the committee.

Brad Stanhope

Tuesday, December 1, 2015

Campaigning to get a state tax credit is an exhausting task that sometimes takes years. When it becomes a reality, the temptation is to relax.That’s a mistake.“You can’t take tax credits for granted, you have to follow up,” said Robert Naylor, program manager at national preservation advocacy organization Preservation Action, who cited examples of recent state historic tax credit (HTC) complexities. “North Carolina’s HTC was allowed to expire [and was subsequently reinstated]. Ohio’s HTC was recently threatened, catching many off guard. Wisconsin issued a moratorium on its HTC, halting the program for several months. Historic tax credit programs are constantly threatened despite significant support and well-documented success. You have to remain vigilant.”

Teresa Garcia

Tuesday, December 1, 2015

Public and private partners are finding ways to serve more healthy food options to economically distressed communities with a few helpings of new markets tax credits (NMTCs). The 2014 allocation round of the federal NMTC provided no specific set-aside of credits for healthy food financing, yet 51 of the 76 allocatees indicated on their applications that they intend to devote a share of their NMTC authority to financing healthy food enterprises. Common types of projects include food distribution centers, grocery stores and farmers markets.

Bill MacRostie

Tuesday, December 1, 2015

Christmas came early for developers of historic properties in North Carolina when Gov. Pat McCrory signed the state budget that once again included historic tax credits. The previous programs sunset at the end of 2014 and developers and state leaders alike bemoaned the loss of tax credits that had revitalized many communities and vacant properties in the state and had incentivized millions of dollars in economic development. Though pronounced dead by many in the state Legislature, extraordinary lobbying by Gov. McCrory, Secretary of Cultural Resources Susan Kluttz and many others in the preservation and development communities resulted in a revived bill signed into law on Sept. 20. The new law, created in Article 3L of the North Carolina Revenue Code, is effective Jan. 1, 2016 and sunsets Jan. 1, 2020.

Mark O’Meara

Tuesday, December 1, 2015

Boulder Housing Partners (BHP) knew it had a challenging road ahead when it decided to rehabilitate its affordable housing properties in Boulder, Colo. To get the job done, the housing authority for the city of Boulder, which builds, owns and manages roughly 33 percent of the city’s affordable housing stock, used the Rental Assistance Demonstration (RAD) and Section 18 Disposition programs with the help of 4 percent low-income housing tax credits (LIHTCs).


News Briefs

Tuesday, December 1, 2015

The Internal Revenue Service (IRS) released Revenue Procedure (Rev. Proc.) 2015-49 Oct. 13. Rev. Proc. 2015-49 provides the amounts of unused 2015 Low-Income Housing Tax Credit (LIHTC) carryovers allocated to qualified states under Section 42 of the Internal Revenue Code (IRC). ...

Tuesday, December 1, 2015

On Oct. 13, the Colorado Housing and Finance Authority (CHFA) released an updated Low-Income Housing Tax Credit (LIHTC) program compliance manual. Changes were made to the preface, Section 2.2C–Disallowed Fees ...

Tuesday, December 1, 2015

The Rhode Island Division of Taxation adopted regulations CR 15-17, the anchor institution tax credit; CR 15-19, the rebuild Rhode Island tax credit; and CR 15-18, the Rhode Island Qualified Jobs Incentive Act of 2015, effective Oct. 27. ...

Tuesday, December 1, 2015

On Oct. 13, the U.S. Department of Housing and Urban Development (HUD) released 2016 operating cost adjustment factors (OCAFs). OCAFs are used to adjust Section 8 rents in housing assistance payments (HAP) contracts. ...

Tuesday, December 1, 2015

U.S. Bank announced Oct. 13 a $7.2 million new markets tax credit (NMTC) equity investment for the construction of Freshwater Plaza. The 110,000-square-foot plaza will be the home of a Cermak Fresh Market grocery store, street-level retail and 76 apartments in the Walker’s Point neighborhood of Milwaukee.

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