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Novogradac Journal of Tax Credits Volume 6 Issue 9

The September 2015 issue of the Novogradac Journal of Tax Credits

Journal cover September 2015

Articles

Michael J. Novogradac

Tuesday, September 1, 2015

Congress returns to session this month to face a full slate of pressing issues including a Sept. 30 deadline to pass funding legislation to avoid a government shutdown. As year-end deadlines start to pile up and before we look ahead to plan for 2016, it’s an ideal time to consider the major developments of the year so far. Of the top 10 stories described here, some have been ongoing issues that are following somewhat predictable paths. Others, while expected and foreseen, have included some surprising twists.

Mark Shelburne

Tuesday, September 1, 2015

For many affordable housing professionals, the summer of 2015 will be remembered as a blur. The last few months saw an unusual level of program rollouts, news stories, important research, regulatory activity and official reports.Yet even among all of these, one event stands out. Those familiar with the low-income housing tax credit (LIHTC) are accustomed to Congressional and cabinet agency involvement, but for the first time, the program was being considered at the highest level of the federal government’s third branch. Or was it? What does the most anticipated and talked-about occurrence of the season actually have to do with LIHTCs? The answer is not entirely clear.

James R. Kroger

Tuesday, September 1, 2015

Question: What are the Internal Revenue Service (IRS) compliance requirements for low-income housing tax credit (LIHTC) properties that are beyond the 15-year compliance period?Answer: The IRS requires LIHTC properties to have an extended use period with the state housing agency for an additional 15 years after the 15-year compliance period, for at least 30 years of affordability. State housing agencies still monitor compliance for LIHTC properties during the extended use period, however, noncompliance during the extended use period is not reported to the IRS, and will generally not trigger LIHTC recapture under Internal Revenue Code (IRC) §42. It’s important to note that the extended use period compliance requirements vary state by state, and owners should always check with the state housing agency and review the LIHTC land use restriction agreement (LURA) recorded against the property. ...

John Leith-Tetrault

Tuesday, September 1, 2015

With tax reform receding for the time being as a threat to the federal historic tax credit (HTC), there is good legislative news on the horizon. The Historic Tax Credit Improvement Act (HTCIA) is scheduled for introduction in the House of Representatives when Congress returns in September.The bill’s new Ways and Means champion is Rep. Mike Kelly, R-Pa., who has represented Pennsylvania’s 3rd Congressional district since 2011. The district stretches from the northern suburbs of Pittsburgh to Erie. Kelly was born and raised in Butler, Pa., where he served as a board member of both the Butler County Housing and Redevelopment authorities. ...


News Briefs

Tuesday, September 1, 2015

The National Association of Home Builders (NAHB) Housing Credit Group released the study, “The Economic Impact of Repealing or Limiting Section 1301 Like-Kind Exchanges in Real Estate,” June 22. ...

Tuesday, September 1, 2015

The Rural Housing Service (RHS) released proposed regulation changes Aug. 6 for its multifamily housing program. RHS proposed changing program requirements concerning financial reporting to align RHS requirements with the U.S. Department of Housing and Urban Development (HUD) requirements. ...

Tuesday, September 1, 2015

On June 22, Texas Gov. Greg Abbot signed H.B. 3230 into law. The bill determines the eligible costs and expenses under the franchise tax credit for the rehabilitation of historic structures, stating that under that state historic tax credit (HTC), ...

Tuesday, September 1, 2015

On July 13, the Internal Revenue Service (IRS) released Notice 2015-51, which modifies the January 2015 Notice 2015-4. The notice provides performance and quality standards that small wind energy property must meet to qualify for the production tax credit (PTC) and the investment tax credit (ITC). ....

Tuesday, September 1, 2015

Louisiana H. 749 (Act 357) was signed into law June 29. The bill requires the state’s House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs to review and report on certain tax credits beginning no later than Jan. 31, 2016. ...

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