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Novogradac Journal of Tax Credits Volume 7 Issue 2

The February 2016 issue of the Novogradac Journal of Tax Credits

Journal cover February 2016


Brad Stanhope

Monday, February 8, 2016

The adaptive reuse of a historic textile building in Danville, Va., with a mixture of tax credits came at a price. But those involved say it’s worth it.Construction on the River District Tower began in October and is slated to be completed in early 2017. When finished, the former Dan River Research Building will hold medical and other offices, a coffee shop and restaurant. It will complete an effort that took years and myriad adjustments for a group of determined local investors.

Mark O’Meara

Friday, February 5, 2016

The Western Macaroni Manufacturing Company built a warehouse in 1900 in Salt Lake City to manufacture its pasta for national distribution. Fast forward 116 years and the building–in the Depot District on the west side of the city–is being repurposed into a mixed-use development called Artspace Macaroni Flats, with affordable housing and work space for artists, nonprofits and startup companies.

Forrest D. Milder

Thursday, February 4, 2016

Every December, the renewable energy industries go through the final push of a yearlong effort to get tax equity programs extended and expanded. Sometimes, it happens. At the end of 2015, both the Consolidated Appropriations Act (Appropriations Act) and the Protecting Americans from Tax Hikes Act (PATH Act) became law, providing extensions for several, but not all, renewable technologies.

Allen F. Johnson

Wednesday, February 3, 2016

It all started in Green Bay. The Hotel Northland, built in 1924, was sitting prominent and vacant and ripe for redevelopment. Mike Frantz, founding partner of Frantz Community Investors, was asked to take a look at the property.

National Association of Affordable Housing Lenders

Tuesday, February 2, 2016

The Community Reinvestment Act (CRA) is a powerful driver of bank lending and investment for properties with low-income housing tax credits (LIHTCs) and new markets tax credits (NMTCs), as well as for other affordable housing and community development purposes.

News Briefs

Wednesday, February 3, 2016

New Jersey Assembly Bill 4413 was signed Dec. 2. A4413 prohibits a state public body from awarding an economic development subsidy of more than $25,000 to a business that previously received an economic development subsidy that was a loan or loan guarantee if the recipient business is in default on that previously awarded loan or loan guarantee. The term “economic development subsidy” includes any bond, grant, loan, loan guarantee, matching fund, tax credit or other tax expenditure. A4413 was effective immediately.***On Dec. 9, the West Virginia State Tax Department issued Administrative Notice 2015-22: Small Business Economic Opportunity Tax Credit. The notice lists inflation adjustments for tax years beginning in 2016. The amount for 2016 is $9,275,150, an increase from the 2015 amount of $9,233,450. Additionally, effective for tax years beginning in 2016, a small business must have annual gross receipts of $9.2 million or less. The adjustment will be used in determining whether a small business qualifies for the tax credit.***The Colorado Department of Revenue (CDOR) amended Rule 4 CCR 725-4:2 was effective Jan. 1. The rule amended the qualifications for certification of conservation easement holders. Topics discussed in the adopted rules include organization, process, stewardship, finance and governance. The amendment included provisions on what should be assessed when reviewing the conservation easement appraisal such as the physical and legal aspects of the property

Wednesday, February 3, 2016

On Dec. 18, President Barack Obama signed into law the Consolidated Appropriations Act of 2016, which provides extensions and phase outs for the wind energy production tax credit (PTC) and the solar investment tax credit (ITC). The PTC was extended through 2016, with a phase out plan for the credit after 2019. The ITC was extended through 2019, also with a phase out plan, with a date set for after 2021. Both bills are available at

Wednesday, February 3, 2016

The Colorado Housing and Finance Authority (CHFA) announced Dec. 17 the launch of its Federal Housing Administration (FHA) Risk Share program. The program, which is made possible through a partnership with the U.S. Department of Treasury and and the U.S. Department of Housing and Urban Development (HUD), provides competitive fixed-rate, permanent financing with up to 40-year terms.

Wednesday, February 3, 2016

The Joint Center for Housing Studies of Harvard University (JCHS) released the report, “America’s Rental Housing: Expanding Options for Diverse and Growing Demand,” Dec. 9. The report is a biennial report that summarizes recent data of rental housing trends. JCHS found that tight rental markets present a challenge of affordability in a time of rising overall demand. The organization advocates for sound policies and programs that address the needs of lower-income renters and communities and to focus on expanding the range of renal housing options. Data indicated that by mid-2015, 43 million families and individuals lived in rental housing, which is a 9 million increase from 2005. In addition, the share of all U.S. households that rent rose from 31 percent to 37 percent, which JCHS states is the highest level since the mid-1960s. The full report is available at

Wednesday, February 3, 2016

U.S. Bank announced Dec. 21 the investment of $7 million in federal new markets tax credit (NMTC) equity for the construction of the Conway Center. So Others Might Eat (SOME), a faith-based community organization focused on poverty, is building the $90 million Conway Center in the Benning Heights neighborhood of Washington, D.C.

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