The Internal Revenue Service and Treasury Department recently announced that it will soon issue a safe harbor revenue procedure for historic rehabilitation tax credit (HTC) transactions. The guidance will address certain recent real estate industry concerns that have emerged over HTC financing, particularly those concerns related to the Historic Boardwalk Hall LLC vs. Commissioner, Consolidated Edison and other related cases. An IRS official noted that the guidance would emphasize the government’s position in the litigation that investors with no meaningful “downside risk or upside potential” in a partnership would not be treated as partners for tax purposes.
Click here to learn more about the Historic Boardwalk Hall case.
