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Novogradac Journal of Tax Credits Volume 6 Issue 2

The February 2015 issue of the Novogradac Journal of Tax Credits

Journal cover February 2015

Articles

Michael J. Novogradac

Sunday, February 1, 2015

When we last saw Congress, it was approving compromise tax-extenders legislation after managing to reach an agreement that left no one fully satisfied–a one-year retroactive extension of more than 50 tax provisions through the end of 2014. They included the 9 percent floor for the low-income housing tax credit (LIHTC), the production tax credit (PTC) for wind and certain other renewable energy sources and the new markets tax credit (NMTC). While it certainly could have been worse for the tax credit community—there were some lawmakers who advocated for no extension—the widely expected two-year extension didn’t happen. ...

Owen P. Gray, CPA

Sunday, February 1, 2015

After the end of the seven-year new markets tax credit (NMTC) compliance period, the NMTC investor may choose to exit the transaction. They may do this by exercising their rights under a put option, whereby the other party to the put option is required to buy the NMTC investor’s interest for a predetermined price. Usually this is done at the NMTC investment fund level (when using a leveraged structure). Alternatively, the NMTC investor may simply choose to liquidate its interest in the subsidiary community development entity (CDE). The investor’s decision to sell their interest will have an impact not only on the tax filing requirements of the investment fund, but equally important, on the subsidiary CDE (that the investment fund made a qualified equity investment in). ...

Brad Stanhope

Sunday, February 1, 2015

Pardon those in the historic tax credit (HTC) community if they feel battered. “There’s never been a period in my memory where projects struggled to find investors,” said John Leith Tetrault, chairman of the Historic Tax Credit Coalition (HTCC). “Deals are staying on the market much longer than they used to.” Leith Tetrault says a combination of a landmark court ruling, the issuance of a revenue procedure and uncertainty about how to treat 50(d) income generated by the use of the Master Tenant structure have slowed the industry over the past few years. ...

Forrest D. Milder

Sunday, February 1, 2015

Section 48 of the Internal Revenue Code (Code) is most associated with the investment tax credit (ITC) for solar, but it also provides credits for almost all renewables, including one that we’ll focus on here, the 30 percent credit for “qualified small wind energy property.” Despite this focus, even if you are not an investor or developer of small wind facilities, you should keep reading. ...


News Briefs

Sunday, February 1, 2015

The United States Conference of Mayors released its annual report, “Hunger and Homelessness Survey: A Status Report on Hunger and Homelessness in America’s Cities” in late December 2014. The survey analyzes the status of hunger and homelessness in 25 cities. ...

Sunday, February 1, 2015

On Dec. 9, 2014, Enterprise Community Investment Inc. and Bellwether Enterprise Real Estate Capital LLC (Bellwether Enterprise), the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment Inc.. ...

Sunday, February 1, 2015

The Ohio Development Services Agency (ODSA) announced a $25 million award Dec. 18, 2014, for the renovation of Music Hall in Cincinnati, and $404,203 for renovation of the Spitzer Plaza Hotel and Lorain Renaissance Inn in Lorain. ...

Sunday, February 1, 2015

On Dec. 15, 2014, Berkeley Lab released the report, “Deconstructing Solar Photovoltaic Pricing: The Role of Market Structure, Technology and Policy.” ...

Sunday, February 1, 2015

On Nov. 24, 2014, William Galvin, the Massachusetts secretary of state, announced $400,000 in historic preservation tax credits for the renovation and expansion of the Stockbridge Library in Stockbridge, Mass. ...

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