Tax Credit Tuesday Podcasts

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.

May 14, 2024: Expanding Knowledge of Compliance for Mixed-Income Tax Credit Properties

Published by Michael J. Novogradac on May 14, 2024

Property compliance is multilayered for owners and managers of low-income housing credit (LIHTC) properties, with complexity increasing for mixed-income properties, which are properties whose renters make up to varying levels of the area median income, often including market-rate apartments. In this episode of Tax Credit Tuesday, Michael Novogradac, CPA, and Stephanie Naquin, HCCP, COS, delve into compliance for mixed-income properties that use the LIHTC. They discuss the definitions of 100% affordable housing and mixed-income housing, recertifications, the next-available-unit rule and more.

May 7, 2024: Renewable Energy Tax Credit Finance Series: Prevailing Wage and Apprenticeship: Meeting the Criteria

Published by Michael J. Novogradac on May 7, 2024

The Inflation Reduction Act of 2022 reduced the base rate of the then-26% renewable energy investment tax credit to 6% for renewable energy projects. Few projects are financially viable with just the 6% credit, but projects can qualify for a 30% credit if they satisfy two criteria: prevailing wage and apprenticeship (PWA) requirements. In the latest installment in Tax Credit Tuesday’s recurring Renewable Energy Tax Credit Finance series, Michael Novogradac, CPA, and Tony Grappone, CPA, discuss the credits and technologies to which PWA criteria apply, how to meet PWA criteria and how to provide investors comfort with PWA compliance.

April 30, 2024: So You Want to Be a LIHTC Developer: Introduction to Eligible Basis

Published by Michael J. Novogradac on April 30, 2024

Eligible basis is a foundational factor to determine the maximum amount of low-income housing tax credits (LIHTCs) generated by an affordable housing property. In this week’s podcast, Michael Novogradac, CPA, and Mark Shelburne, a Novogradac housing policy consultant, discuss the fundamentals of eligible basis and the implications for properties ahead of a special six-part online course offered by Novogradac. They examine the purpose of that course series, then look at the role eligible basis plays in determining the tax credit allocation amount. After that, they look at the challenges in determining what parts of an affordable housing development are depreciable and what constitutes eligible basis, including examples of challenges faced. They wrap up by talking about opportunities to learn more about the nuances of eligible basis.

April 23, 2024: Gap Funding for Historic Preservation, And More

Published by Michael J. Novogradac on April 23, 2024

Many developers are familiar with the challenges when using historic tax credits (HTCs) to preserve America’s history, including issues such as climbing interest rates, rising insurance rates and increasing costs of construction and labor. In this week’s episode of the Novogradac Tax Credit Tuesday podcast, Michael Novogradac, CPA, and John DeJovine, CPA, discuss gap financing solutions for developers involved in historic preservation. First, the conversation covers the use of bridge loans, tax increment financing (TIF), payment in lieu of taxes (PILOT), property assessed clean energy (PACE) funds and other state, local and municipal sources of financing. Later, Novogradac and DeJovine discuss how the HTC pairs with other affordable rental housing and financing community development using such incentives as the low-income housing tax credit (LIHTC), new markets tax credit (NMTC), opportunity zones (OZ) equity, and renewable energy incentives such as the production tax credit (PTC) and investment tax credit (ITC).

April 16, 2024: What You Need to Know About HUD’s 2024 Rent and Income Limits

Published by Michael J. Novogradac on April 16, 2024

The U.S. Department of Housing and Urban Development (HUD) released 2024 rent and income limits earlier this month–limits that determine renter eligibility for HUD-assisted programs and for properties financed by low-income housing tax credit (LIHTCs). The limits also determine the maximum rents that owners of LIHTC properties can charge tenants. In this week’s podcast, Michael Novogradac, CPA, and Novogradac partner Thomas Stagg, CPA, discuss the rent and income limits. They look at key takeaways, how the new 10% ceiling affected limits, what geographic areas saw income limit growth that was below the national average of 6% or decreased and how the income limits affect (or don’t affect) HERA special properties. They also look to what to expect in 2025 and key dates for data release that will affect those 2025 limits.

April 9, 2024: Renewable Energy Tax Credit Finance Series: Elective Pay Final Regulations

Published by Michael J. Novogradac on April 9, 2024

In the latest installment in Tax Credit Tuesday’s recurring Renewable Energy Tax Credit Finance series, Michael Novogradac, CPA, is joined by Tony Grappone, CPA to discuss final regulations concerning the elective pay option for certain renewable energy investment tax credits. The Internal Revenue Service published the final regulations in the March 11 Federal Register to adopt and codify temporary regulations issued in June 2023, with slight modifications. Learn about the elective pay final regulations, how they differ from the temporary regulations, potential penalties for excessive payments and the impact of other financing on elective pay.

April 2, 2024: Boost Your Team’s Knowledge in Tax Credits, Community Development with Novogradac E-Learning Platform

Published by Michael J. Novogradac on April 2, 2024

Affordable housing and community development finance can be dense, layered, complex topics to understand. In the latest episode of the Novogradac Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Wayne Michael, CPA, Novogradac’s senior director of education, discuss Novogradac’s e-learning platform, Novoco Training, which seeks to bridge the gaps between novice and knowledgeable when it comes to developing affordable rental housing and financing community development using such incentives as the low-income housing tax credit (LIHTC), historic tax credit (HTC), new markets tax credit (NMTC), renewable energy production tax credit (PTC) and investment tax credit (ITC) and more. They discuss what distinguishes the e-learning platform from other points of contact and information with Novogradac, the different types of content and their formats available and ways users can access that content.

March 26, 2024: So You Want to Be a LIHTC Developer: The Many Meanings of ‘Mixed Income'

Published by Michael J. Novogradac on March 26, 2024

Many in the affordable rental housing development community may think they know what is meant by the term “mixed income,” but, in fact, the phrase has many different interpretations depending on person, jurisdiction, property type, ownership structure and more. In the latest installment in the Tax Credit Tuesday podcast’s So You Want to Be a LIHTC Developer series, Michael Novogradac, CPA, and Mark Shelburne, Novogradac housing policy consultant, discuss six different ways the term can be interpreted. Later, the pair discusses three potential impacts these terms can have on investor interest, additional debt burden and property compliance.

March 19, 2024: NMTC Hot Topics

Published by Michael J. Novogradac on March 20, 2024

In this episode of the Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Brad Elphick, CPA, discuss four hot topics in the new markets tax credit (NMTC) community. First, they discuss upcoming qualified equity investment issuance and reporting deadlines for prior allocatees. Second, they talk about recommendations to combine the next two allocation rounds into a single $10 billion allocation round. Third, they discuss what’s new and notable with the 2024 NMTC application that was released for public comment. They conclude with important updates in the NMTC Compliance FAQs document.

March 12, 2024: What to Know About Including Bond Issuance Costs in Eligible Basis After Tax Court Decision

Published by Michael J. Novogradac on March 12, 2024

The United States Tax Court ruled in a Feb. 20 decision that a taxpayer was correct to include bond issuance costs in eligible basis for a 4% low-income housing tax credit (LIHTC) property in New York City. That decision ran counter to more than two decades of practice that followed Internal Revenue Service (IRS) guidance from as far back as 2000 that said including such costs was disallowed. In the latest installment of Tax Credit Tuesday, Michael Novogradac, CPA, and Nicolo Pinoli, CPA, discuss the details of the case in question before the court as well as the possible ramifications of the decision, including what the IRS could do now and what this decision could mean for credit allocating agencies, developers, investors and others who build multifamily affordable rental housing using LIHTCs.

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