Novogradac Journal of Tax Credits Volume 9 Issue 7
The July 2018 issue of the Novogradac Journal of Tax Credits
Dave’s Supermarket, which has been serving the greater Cleveland area since the 1930s, is in the midst of building a grocery store to replace its flagship location.
A Houston-based housing developer is bringing hope to those struggling with homelessness in Texas’ most populated city.
Question: Can a hydroponic facility meet the requirements to be a Qualified Active Low-Income Community Business (QALICB)?
Answer: Treasury Regulation Section 1.45D-1(d)(5) defines what a qualified business is under the New Markets Tax Credit (NMTC) program and lists certain trades or businesses that are excluded from this definition.
When Congress passed and President Donald J. Trump signed the Consolidated Appropriations Act of 2018, much of the affordable housing community’s focus was understandably on the increase in funding for public and affordable housing.
When President George W. Bush signed the Housing and Economic Recovery Act (HERA) of 2008, it was the worst of times; it was the best of times: The U.S. economy teetered on the brink of disaster, but the low-income housing tax credit (LIHTC) got its biggest boost since 2000
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The Community Development Financial Institutions (CDFI) Fund opened the calendar year 2018 new markets tax credit (NMTC) allocation round May 9. A notice of allocation availability made $3.5 billion available for the current round. Applications for allocation authority were due June 28 and June 26 was the last day that the CDFI Fund answered questions about the application. Prior allocatees must record their qualified equity investments in CDFI Fund systems by Sept. 24 and allocation awards will be announced during winter 2019. The CDFI Fund released an introduction to the NMTC program, 2018 NMTC application frequently asked questions and a roadmap presentation on important information and resources for the 2018 NMTC application round.
Louisiana legislation H 374, concerning the state solar energy system tax credit, was effective May 10. The bill requires the Board of Tax Appeals to issue an order to tax costs for the deposits and filing fees paid on appeals related to denials by the Louisiana Department of Revenue of a qualified claim for a solar energy system tax credit. This order must be issued within 30 days of the effective date of the bill. A qualified claim for a solar energy system tax credit is claim-eligible for payment by the department effective June 26 and does not include any claim that does not qualify for payment or any claim that includes other justiciable issues in addition to the solar energy system tax credit. The board is authorized to waive any deposits and filing fees for a qualified claim if the deposits and filing fees were not paid by May 10.
Missouri S.B. 590 was enacted May 18 to reduce the annual state historic tax credit (HTC) program cap from $140 million to $90 million, with the possibility of an additional $30 million in tax credits for developments in qualified census tracts. The bill is effective Aug. 28. SB 590 is available at www.historictaxcredits.com.
U.S. House of Representatives Financial Services Housing and Insurance Subcommittee Chairman Sean Duffy, R-Wis., and Ranking Member Emanuel Cleaver, D-Mo., introduced May 15 the Housing Choice Voucher Mobility Demonstration Act of 2018. H.R. 5793 would encourage Section 8 Housing Choice Voucher recipients to move to lower-poverty neighborhoods in order to expand access to opportunity areas. At press time, H.R. 5793 was referred to the House Committee on Financial Services and has no additional sponsors. The bill is available at www.hudresourcecenter.com.
The Ohio Housing Finance Agency (OHFA) issued May 30 a compliance program update regarding 2018 U.S. Department of Housing and Urban Development (HUD) HOME rent limits and rent approval submission. Recipients of HOME assistance must implement the 2018 HOME rent limits and submit a HOME rent approval form to OHFA by July 16. Recipients of HOME funds are required to submit an OHFA HOME rent approval form on an annual basis. HOME recipients who fail to submit the form may be placed on OHFA’s watch list and OHFA’s Office of Planning, Preservation and Development will be notified. Allocation of funding for new developments may be impacted for owners/recipients who are on the watch list. The 2018 HUD-published HOME rents were effective June 1.