Novogradac Journal of Tax Credits Volume 9 Issue 11
The November 2018 issue of the Novogradac Journal of Tax Credits. For more content, please subscribe to the Journal.
As California continues to be a leader in solar energy, affordable housing developers have a new tool to help them get in the game.
The iconic blue flame is returning to downtown El Paso, Texas–and it will bring along 120 affordable apartments and nearly 40,000 square feet of commercial space in what will be called the Blue Flame Apartments.
It was a Saturday morning in early December 2017.
“Nothing travels faster than the speed of light, with the possible exception of bad news, which obeys its own special laws.”—Douglas Adams
The inaugural Novogradac Opportunity Zones Conference was in The Big Easy–and while the opportunity zones (OZ) incentive is potentially big, it’s not easy.
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The Alabama Court of Civil Appeals Sept. 14 overturned a trial court decision and ruled that the state’s NMTC can reduce the financial institutions excise tax (FIET) only by the amount paid to the state. The ruling said the NMTC can’t reduce FIET proceeds paid to counties and municipalities in which the financial institution was located. The decision in Alabama Dept. of Revenue vs. Bryant Bank, Ala., overturns an earlier decision that authorized a credit only against the amount paid to counties and municipalities and not to the state. The ruling is available at www.newmarketscredits.com.
Sens. Tim Scott, R-S.C., and Michael Bennet, D-Colo., wrote a letter Sept. 20 to U.S. Secretary of the Treasury Steven Mnuchin requesting clarification on whether energy storage technologies qualify for the renewable energy investment tax credit (ITC) when added to an existing ITC-eligible technology. The senators requested that the clarification be included in the Internal Revenue Service’s (IRS’s) 2018-2019 Priority Guidance Plan. The IRS previously recognized that energy storage technologies are eligible for the ITC when installed at the same time as ITC-eligible technologies, but has not explicitly affirmed whether storage technologies are eligible when added to an existing ITC-eligible technology. The letter is available at www.energytaxcredits.com.
The Advisory Council on Historic Preservation (ACHP) held its quarterly meeting Oct. 4. The meeting covered such topics as ACHP approaches to commenting on historic preservation language, historic preservation policy and programs and administration infrastructure initiatives.
U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson announced Sept. 19 that HUD’s Rental Assistance Demonstration (RAD) program has preserved 100,000 units. The RAD program provides public housing authorities with access to private investment to preserve public housing properties and address the backlog of deferred maintenance. The fact sheet is available at www.hudresourcecenter.com.
The Government Accountability Office (GAO) released its study on development costs for low-income housing tax credit (LIHTC) properties Sept. 18. “Low-Income Housing Tax Credit: Improved Data and Oversight Would Strengthen Cost Assessment and Fraud Risk Management” measured development costs of LIHTC properties in 10 states between 2011 and 2015. The GAO report found that the median total development cost per unit in its survey was $204,000–higher than the same number in another recent report by Abt Associates, which is largely attributable to the fact that the Abt Associates report is national and includes 4 percent developments while the GAO report is focused on 10 states including some of the highest-cost cities in the nation. The report calls for the IRS to require general contractor cost certifications for LIHTC projects, encourage allocating agencies and other stakeholders to collaborate on more standardized cost data and communicate to allocating agencies on how to collect information and review information on LIHTC syndication expenses. The GAO report recommended that Congress designate an agency to collect and maintain cost-related data from allocating agencies and periodically report on LIHTC development costs.