Novogradac Journal of Tax Credits Volume 9 Issue 8
The August 2018 issue of the Novogradac Journal of Tax Credits
The Seattle Asian Art Museum is receiving a facelift to preserve its history, expand its footprint and bring the building up to 21st century standards.
New markets tax credit (NMTC) equity helped an iconic historically black college in Alabama get over a final financing hurdle so it can continue to grow.
Location is nearly everything when determining the growth of 4 percent low-income housing tax credits (LIHTCs).
It is a big election year–perhaps bigger than any other midterm election in recent history. Among the most highly anticipated contests are 36 gubernatorial races.
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The New Markets Tax Credit (NMTC) program created $5.8 billion in total project investment and 60,000 jobs in 2017, according to the 2018 New Markets Tax Credit Progress Report, released mid-June by the New Markets Tax Credit Coalition. The annual report included information from 89 community development entities, covering 81 percent of NMTC activity in 2017. The report stated that 83 percent of NMTC projects in 2017 were in severely distressed communities, which far exceeds the statutory requirements. The report is available at www.newmarketscredits.com.
The Internal Revenue Service (IRS) June 25 released Notice 2018-59, establishing beginning-of-construction guidance for the renewable energy investment tax credit (ITC) under Section 48 of the Internal Revenue Code. The notice provides two methods for taxpayers to establish the beginning of construction: a physical work test and a 5 percent safe harbor. The guidance also provides a continuity requirement for both methods, rules for transferring energy property and additional rules applicable to the beginning-of-construction requirement of Section 48. The notice is available at www.energytaxcredits.com.
Legislation to eliminate the existing basis adjustment requirement for historic tax credit (HTC) properties was introduced June 13 by Sens. Bill Cassidy, R-La., Ben Cardin, D-Md., Susan Collins, R-Maine, and Reps. Darin LaHood, R-Ill., and Earl Blumenauer, D-Ore. A press release from Sen. Cassidy’s office said the legislation brings the HTC in line with other tax credits claimed over multiple years, including the low-income housing tax credit (LIHTC).
The U.S. Department of Housing and Urban Development (HUD) published a notice June 4 in the Federal Register announcing a 2.1 percent increase in the base per-unit statutory mortgage limits for the Federal Housing Administration’s multifamily mortgage programs. The effective date is Jan. 1, 2018. The notice is available at www.hudresourcecenter.com.
The Ohio Housing Finance Agency (OHFA) issued a reminder memo June 14 announcing the dates of its 2018 compliance training. The compliance training is required for owners trying to obtain their Form 8609s. There is also a requirement that all owners have at least one person with decision-making authority over resident files and program compliance activities attend this training every two years. This training provides information about the Low-Income Housing Tax Credit (LIHTC) program and reviews OHFA-specific rules. For a complete list of upcoming training dates, go to www.ohiohome.org.