Novogradac Journal of Tax Credits Volume 9 Issue 3
The March 2018 issue of the Novogradac Journal of Tax Credits
A 125-year-old institution in St. Paul, Minn., almost went extinct. That is until historic tax credits (HTCs) and new markets tax credits (NMTCs) helped to bring life back to the Minnesota Museum of American Art (the M).
Monogram Foods Solutions, a manufacturer of meat products, snacks and appetizers, is a stabilizing force in Martinsville, Va.
The election of the gross rent floor is a commonly misunderstood concept because there really is no election required.
In the wake of the tax reform legislation, H.R. 1, enacted Dec. 22, 2017, and the new partnership audit regime required by the Bipartisan Budget Act of 2015 with respect to tax years beginning Jan. 1, 2018, syndicators and developers need to determine whether partnership agreements should be amended before the filing of the partnership’s 2018 federal income tax return.
A widely leaked draft Senate bill would overhaul the secondary mortgage market and scale back commitments to affordable mortgages.
- 1 of 2
- next ›
The Internal Revenue Service issued Feb. 8 Revenue Procedure 2018-16. The document provides guidance to the governors of any state about how certain population census tracts may be designated as qualified Opportunity Zones. Specifically, the revenue procedure clarifies the nomination process by informing the governors of each state which census tracts in their jurisdictions are eligible to be nominated and by providing the requirements and due dates for the nomination, certification and designation of the zones. In addition, the revenue procedure provides a safe harbor for applying the 25 percent limitation to the number of population census tracts in a state that may be designated as qualified opportunity zones. Revenue Procedure 2018-16 was in IRB 2018-09 and is available at www.opportunityzoneresourcecenter.com.
State Senate Bill 2100 was introduced Jan. 19 to create a Hawaii state renewable energy investment tax credit for energy storage. If passed, the bill would create a 30 percent credit for systems placed in service after June 30. The credit would gradually step down to a 10 percent credit for systems placed in service after Dec. 31, 2021. The bill is available at www.energytaxcredits.com.
The Alabama Department of Revenue adopted rules 810-3-137-.01 and 810-3-137-.03, effective Feb. 19. The rules provide guidance regarding the state historic tax credit (HTC) program. Rule 810-3-137-.01 defines terms for purposes of the credit, such as tax credit certificate, transfer tax credit certificate, transfer statement and transfer agreement. Rule 810-3-137-.03 provides guidance regarding improperly obtained HTCs and recapture of the credits. The rule provides that the Department has the right to audit and assess 100 percent of any credit improperly obtained by an owner. Recapture of a credit will apply against the taxpayer who uses the credit. Recapture also occurs when the project fails to meet the definitions of a certified historic structure or a certified historic residential structure and recapture and any related adjustments of basis will be governed by principles that correspond to those applicable to the federal HTC.
The U.S. Department of Housing and Urban Development (HUD) announced $25 million in grants Jan. 17 to identify and eliminate lead-based paint hazards in public housing. The funding directs support to public housing agencies to evaluate and clean up lead-based paint hazards in older housing developments. Agencies will use the funding to perform risk assessments and conduct specialized cleaning to remove or control lead-contaminated dust and soil in and around the public housing units. HUD will award grants to approximately 30 recipients ranging from $25,000 to $1 million. The funds are offered through HUD’s Public and Indian Housing Lead-Based Paint Capital Fund program. Applications are due March 20.
The Ohio Housing Finance Agency (OHFA) announced upcoming 2018 compliance training dates Jan. 22. Compliance training is required for owners trying to obtain their Form 8609s. OHFA’s training provides foundation information about the Low-Income Housing Tax Credit (LIHTC) program and reviews OHFA-specific rules. The course also provides six hours of continuing education credits. A list of training dates and locations is at www.ohiohome.org.