In the 23rd Chelsea Associates case, the U.S. Tax Court ruled that an appropriate share of finance costs attributable to the construction period of the affordable housing part of a project can be included in tax credit basis. These include bond fees imposed by the state agency, origination and letter of credit fees (provided as security for the bonds) imposed by the bank that provided a letter of credit, and underwriters’ fees and expenses and bank and state agency servicing fees. For more, view this blogpost from Forrest Milder with Nixon Peabody.