Tax Credit Tuesday Podcasts

tax-credit-tuesday-podcast-tm-logo

Each Tax Credit Tuesday, Novogradac & Company LLP's audio broadcast offers an in-depth weekly look at tax credit topics. A new episode is posted here and on the RSS Feed by 1 p.m. Pacific Time every Tuesday.

Published by Michael Novogradac on September 27, 2022

Year 15 for low-income housing tax credit properties–the end of the initial compliance period and when the investor partner often has received substantially all its tax benefits–is a crucial period for affordable housing properties. In today’s podcast, Michael Novogradac, CPA, and Novogradac partner Kevin Wilson, CPA, discuss the issues that arise and considerations for LIHTC properties at Year 15. They discuss when to start addressing such issues and what to review, then look at the goals of the partners, needs and desires of tenants, physical condition and fiscal condition of the property and the rights of various partners. They wrap up by looking at the options for various partners at Year 15.

Published by Michael Novogradac on September 20, 2022

The announcement of new markets tax credit (NMTC) allocation awards are expected soon, with the next allocation round opening after that. Well informed and well positioned businesses have a great opportunity to secure NMTC financing, even if they were not originally in a community development entity’s pipeline. Michael Novogradac, CPA, and Novogradac partner Matt Meeker, CPA, discuss how to close an NMTC transaction successfully in the current economic climate. They’ll cover how rising interest rates, growing inflation and supply chain issues are affecting NMTC transactions. They’ll also discuss how to prepare a business for NMTC financing. They’ll close with some common challenges faced in closing NMTC transactions and how to address them.

Published by Michael Novogradac on September 13, 2022

With the upcoming allocation round of the new markets tax credit (NMTC) looming, now is a great time for qualified active low-income community business (QALICBs) to know the important roles in an NMTC transaction as well as potential ways to leverage the sources in their capital stack. In this week’s Tax Credit Tuesday podcast, the second of a three-part NMTC series, Michael Novogradac, CPA, and Novogradac partner Amanda Read, CPA, identify and define those important roles, including the Community Development Financial Institutions (CDFI) Fund, community development entities (CDEs), accountants, lawyers and more. Later, they define and discuss how QALICBs can leverage different sources of financing such as “soft money,” capital campaign dollars and bank debt to maximize the tax credit financing that they can generate from a CDE.

Published by Michael Novogradac on September 6, 2022

The new markets tax credit (NMTC) incentive provides $5 billion a year in allocation authority to community development entities (CDEs) to support businesses in low-income communities or those that support low-income people. As a qualified active low-income community business (QALICB), there are standards to meet and competition with which to contend to receive the financing. In this week’s podcast, the 750th of Tax Credit Tuesday and the first of a three-part NMTC series, Michael Novogradac, CPA, and Novogradac partner Nicolo Pinoli, CPA, discuss the standards and provide tips for businesses to be more competitive to receive such financing. They examine the big picture of the incentive and go over the qualifications to be a QALICB before looking at the amount of financing available and the competition to receive NMTC financing. After they, they examine what businesses should consider at the start of transaction in which they’d like to receive NMTC financing, share key points in the timeline and discuss at what CDEs are looking for when they decide which businesses in which to invest.

Published by Michael Novogradac on August 30, 2022

In this week’s podcast, Michael Novogradac, CPA, and Novogradac partner Brent Parker, CPA, discuss how the Inflation Reduction Act makes it more affordable to include renewable energy and energy efficiency measures in residential rental real estate. They discuss an extension of the Section 45L new energy efficient home credit, qualification updates under the Section 179D deduction and retroactive extension of the renewable energy investment tax credit.

Published by Michael Novogradac on August 23, 2022

One week ago, President Joe Biden signed The Inflation Reduction Act into law, legislation that includes major clean and renewable energy provisions, as well as raising a net total tax of about $90 billion over 10 years, according to the Joint Committee on Taxation. In this week’s podcast, Michael Novogradac, CPA, is joined by Nat Eng, CPA, and Novogradac’s director of public policy and government relations to talk about the provisions of the bill. After giving and overview, they discuss the significant broad and crosscutting provisions of the legislation before diving into the specifics of the clean and renewable energy provisions, including the effect of the increase in credit totals, the direct-pay provisions, transferability and bonus credits. They also discuss provisions that are related to affordable housing and community development.

Published by Michael Novogradac on August 16, 2022

The U.S. Department of Treasury July 27 announced new frequently asked questions (FAQ) guidance to increase the use of Coronavirus State and Local Fiscal Recovery Funds (SLFRF) to boost the supply of affordable housing. In today’s podcast, Michael Novogradac, CPA, and Novogradac partner Dirk Wallace, CPA, examine the guidance and implications for those in affordable housing. They begin by discussing the difficulties with the rule issued earlier this year, then discuss the clearly allowable uses and the ability to use recovery funds as long-term loans for affordable housing. Then they look at the pros and cons of different approaches, outstanding questions about intermediary uses and issues with layering recovery funds into a capital stack. They continue by examining reactions by stakeholders in affordable housing, discussing outstanding issues with the guidance and looking at how to best access recovery funds.

Published by Michael Novogradac on August 9, 2022

Investment in qualified opportunity zones tracked by Novogradac surpassed $30 billion as of June 30, according to a special report published today. In today’s podcast, Michael Novogradac, CPA, and Novogradac partner John Sciarretti, CPA, discuss highlights of the report, as well as other opportunity zones (OZs) issues. They begin by discussing key takeaways from the report, then look at how the economy–with higher interest rates and low unemployment–is affecting the OZ investment space. After that, they talk about some long-term trends that are highlighted in the special report and look at the top cities and top states for planned investment. They wrap up the discussion by talking about OZ extension legislation and decertification regulations.

Published by Michael Novogradac on August 2, 2022

Affordable housing–specifically that financed by tax-exempt, private-activity bonds and 4% low-income housing tax credits (LIHTCs)–is seeing the effects of rising interest rates and inflation. Those factors have implications on finances, meeting the 50% test and many decisions before and during property development. In today’s podcast, Michael Novogradac, CPA, and Christina Apostolidis, CPA (and lead editor of the new edition of the Novogradac Tax-Exempt Bond Handbook) share how inflation and rising interest rates are affecting various areas of PAB-financed housing, the implications of inflation on the 50% test for developers in construction, how those factors affect potential properties and more. They also discuss the differences between 4% and 9% LIHTCs, how competition affects PAB developments and details in the newly released Novogradac Tax-Exempt Bond Handbook.

Published by Michael Novogradac on July 26, 2022

On May 5, the three regulatory agencies that oversee the Community Reinvestment Act (CRA) proposed the first significant, interagency overhaul of CRA rules since 1995. Michael Novogradac, CPA, and Novogradac’s director of public policy and government relations, Peter Lawrence, discuss in this week’s Tax Credit Tuesday podcast what the proposed rules are, how they could affect community development investment and lending, and what stakeholders can do to help influence the rulemaking.