IRS/Tax Issues

Major decisions are being made in Washington that affect the future of tax credit development. But these decisions aren’t made in a vacuum – they are made after consultation with industry experts, constituents and consumers. You should be part of the conversation! Join NH&RA in Washington, DC for its 2010 Spring Policy Forum.

The National Council of Affordable Housing Market Analysts convened its 2010 Spring Underwriting Forum on April 7-8 at the Intercontinental Hotel in New Orleans. NCAHMA is pleased to announce that the PowerPoint presentations from the event are now available…

House Ways and Means Committee Chairman Sander M. Levin (D-MI), recently introduced draft legislation that would make tax-exempt bond-financed properties eligible for the Section 1602 low-income housing tax credit (LIHTC) cash grant exchange program, and allow the new markets tax credit (NMTC) to be used to offset the alternative minimum tax (AMT).

NH&RA has made available the conference PowerPoint presentations from its 2010 Annual Meeting & NMTC Symposium, held March 10-13 in Miami Beach, Fla.

The U.S. Treasury Department recently updated its program guidance for the Section 1603 renewable energy tax credit cash grant exchange program.

The U.S. Government Accountability Office (GAO) released a new report in late January on the New Markets Tax Credit Program entitled, “Credit Helps Fund a Variety of Projects in Low-Income Communities, but Could Be Simplified.” In the report, GAO describes where and how community development entities (CDE) are using NMTCs to finance development in low-income communities and describes options for simplifying the NMTC program.

Senators Max Baucus (D-Mont.) and Charles Grassley (R-Neb.), Chairman and Ranking Member of the Senate Finance Committee have released a draft Jobs Bill. The $85 billion “˜”˜Hiring Incentives to Restore Employment Act” has not been assigned a bill number yet.

In a recent alert, the accounting firm Novogradac & Company has summarized two important IRS Private Letter Rulings impacting the New Markets Tax Credit Ruling.

A recent tax court ruling finds that state historic tax credit investors are partners and that transactions between investors and the partnership are not disguised sales.

While tax credit equity remains the biggest industry concern, debt financing is also elusive for many developers. 2010 promises to be a challenging year–originations are down, underwriting standards are only becoming stricter and, with then end of the TCAP program and declining state budgets, gap financing will become even more difficult to obtain. NH&RA can help!

The U.S. Department of Treasury and Internal Revenue Service (IRS) yesterday jointly announced their 2009-2010 Priority Guidance Plan.

Last night (November 18), Representative Bill Pascrell (D-NJ) introduced legislation that would increase the carryback period for low-income housing tax credits (LIHTCs). Representative Pascrell is a member of the majority party in the House and sits on the House Ways & Means Committee. The measure would implement the following changes…