Novogradac Journal of Tax Credits Volume 7 Issue 12

The expansion of Platte Valley Distillers (PVD) was a near-perfect new markets tax credit (NMTC) transaction for CEI Capital Management LLC (CCML).“This project squares nicely with our triple bottom line for the NMTC–economics, social equity and environmental benefit,” said Tom Dolan, chief operating officer for Maine-based CCML, which allocated $20 million in NMTCs to the Lexington, Neb., company. “This is using a byproduct to create jobs in a low-income community.”

From company hospital to Hollywood set to affordable housing.The site of the Hollenbeck Terrace Apartments in Los Angeles made a century-long journey through the history of Southern California and is now positioned to serve seniors well into the 21st century. Thanks to equity from low-income housing tax credits (LIHTCs) and historic tax credits (HTCs), the iconic Southern California structure is now an affordable apartment complex.

Question: What would cause recapture of federal rehabilitation (historic tax) credits and how would recapture be calculated?

Question: Can marijuana businesses be qualified low-income community businesses (QALICBs)?

The popularity of rideshare services like Uber and Lyft has been on the rise as an alternative form of private transportation. Rideshare drivers earn extra income with the benefit of working flexible hours. The recent surge in the number of low-income housing tax credit (LIHTC) property tenants working as drivers in the rideshare industry creates new challenges for property managers to verify, calculate and document income information. Potential questions and issues on compliance with IRS regulations on low-income housing will arise that need to be addressed.

In mid-October, the Lawrence Berkeley National Laboratory (LBNL) released the report, “U.S. Energy Service Company Industry: Recent Market Trends,” (ESCO). The ESCO report shows that about half of U.S. energy service companies used tax credits during the period studied. This includes energy savings projects, retrofitting, energy conservation and power generation and energy supply. LBNL found that across all market sectors from 2012 through 2014, more than 50 percent of U.S. energy service companies in the report said they use tax benefits.

The Iowa Economic Development Authority (IEDA) board approved assistance Oct. 21 for planned or proposed projects in Sioux City, Urbandale, Durant, Templeton, Holstein and Le Mars. These awards are expected to assist in the creation of 198 jobs and to result in $93 million in new capital investment for the state. Beth Bruening PC. plans to construct a new office building in Sioux City that will serve as its primary location. The board awarded Bruening Eye Specialists tax benefits through the Targeted Jobs Withholding Tax Credit program. This project represents a $1.6 million capital investment and is expected to create 13 jobs. Energy Control Technologies plans to expand its Urbandale facility and was approved for $37,500 in direct financial assistance through the High Quality Jobs program (HQJP).

Monarch Private Capital and BNA Associates held the groundbreaking Oct. 18 for the renovation of Hotel Clermont in Atlanta. The 88,000-square-foot building will be transformed into a 94-room boutique hotel with a destination restaurant. The Hotel Clermont’s renovation was bolstered by Georgia House Bill 308, which raised the maximum state tax credit allowance for historic structures from $300,000 annually to $5 million for certified nonresidential structures or $10 million for large developments that meet certain job-creation standards. 

The U.S. Department of Housing and Urban Development (HUD) released a notice Oct. 24 finalizing a rule to protect housing of survivors of domestic and dating violence, sexual assault and stalking. HUD’s rule implements provisions in the Violence Against Women Act (VAWA) of 2013. It includes provisions that ensure survivors are not punished for being a victim or for being affiliated with a victim. The notice is available at www.hudresourcecenter.com.

The Florida Housing Finance Corporation (Florida Housing) announced Oct. 6 that the agency was monitoring Hurricane Matthew and added procedures and tools for those impacted by severe weather and flooding. Florida Housing provided a questionnaire, the Disaster Damage Assessment: Information for Florida Housing Property Owners and Managers. Florida Housing will conduct a general assessment of damage that results from Hurricane Matthew, and the questionnaire is available for owners and/or managers of rental developments that participate in Florida Housing programs. Owners and residents are instructed to provide a general assessment of damage from Hurricane Matthew by selecting the estimated damage level (for the development overall). The categories are limited, moderate, extensive and catastrophic. Additionally, quantity of units damaged, quantity of buildings affected and the number of people displaced by the damage must be reported. The questionnaire is available at Florida Housing. Owners should also review IRS Rev. Proc. 2014-49 for relief from IRS rules.