Novogradac Journal of Tax Credits Volume 8 Issue 9
The September 2017 issue of the Novogradac Journal of Tax Credits
It’s no joke: The National Comedy Center (NCC) will open next summer in the hometown of legendary comedienne, Lucille Ball. Thanks to new markets tax credit (NMTC) equity, the NCC in Jamestown, N.Y., will feature a 35,000-square-foot immersive exhibit experience/museum, a year-round calendar of live performance and discussions on comedy, and an education component to support aspiring artists and provide comedy arts education.
No roads lead to Noatak.
Many building types–particularly single-use properties such as banks, theaters, churches and hotels–have unique and dramatic interior spaces that are character-defining yet challenging to adapt for contemporary uses.
Financing the first low-income housing tax credit (LIHTC) property in Crawford County, Wis., wasn’t easy–especially because the timing coincided with the LIHTC equity market turmoil in late 2016. Commonwealth Development Corporation’s conversion of a historic school into Lawler School Lofts in Prairie du Chien nearly didn’t happen when the original investor dropped out.
Determining what to include in the calculation of income for qualifying for a low-income housing tax credit (LIHTC) home can be a gray area. The following are common questions as to what items to include in the determination of income, as well as additional items to clarify and how to document them in the files.
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The Community Development Financial Institutions (CDFI) Fund announced Aug. 8 that 230 community development entities (CDEs) requested $16.2 billion in new markets tax credit (NMTC) authority in the 2017 round of the NMTC program. The $16.2 billion in requests is more than four times the $3.5 billion in NMTC authority available in the round, but is the lowest amount requested in the 14 rounds since the NMTC program began. CDEs that issued the requests are headquartered in 42 states, the District of Columbia, Puerto Rico and Guam.
The Incentivizing Offshore Wind Power Act was introduced July 31 by Sens. Tom Carper, D-Del., and Susan Collins, R-Maine. Senate Bill 1672 would create an investment tax credit (ITC) for the first 3,000 megawatts of offshore wind facilities that are placed in service. The program would offer a 30 percent credit and applicants would have to place their facility in service within five years of when they’re issued certification. The bill had 10 co-sponsors, which include nine Democrats and one Independent. S. 1672 is available at www.energytaxcredits.com.
The Rhode Island Division of Taxation issued Notice 2017-02 July 15 on the disclosure and reporting requirements of tax credits and incentives, specifically historic preservation tax credits (HTCs). The notice informs entities receiving specific tax credits and incentives that they must annually disclose certain information to the Division of Taxation. A tax credits and incentives disclosure form, Form TC-100, had to be filed by Aug. 15.
Ben Carson, U.S. Department of Housing and Urban Development (HUD) secretary, announced $178.5 million in 2015 and 2016 disaster recovery funds Aug. 1. The funding will support recovery in Florida, West Virginia, Texas and the Carolinas after severe flooding. The funding is provided through HUD’s Community Development Block Grant–Disaster Recovery (CDBG-DR) program. Combined with CDBG-DR grants already allocated, HUD’s investment to these areas totals approximately $947 million. Grants ranged from $978,000 to $57.5 million.
The Ohio Housing Finance Agency (OHFA) issued a policy July 13 on the Violence Against Women Act (VAWA). The low-income housing tax credit (LIHTC) was added to the list of covered programs under VAWA. Beginning with the 2017 annual owner certification reporting cycle, OHFA will require owners to certify compliance with VAWA requirements. The VAWA certification will be a separate form and not part of the annual owner certification. VAWA protections apply to all victims of domestic violence and other related crimes, regardless of gender.