IRS/Tax Issues

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…

Did you miss the NH&RA Fall Developers Forum? For a limited time only we are making available for purchase select conference recordings and materials including…

NH&RA recently surveyed our membership to find out more about their experiences to date with the TCAP and Exchange programs. As of October 15, respondents to our survey are working on or have closed more than 100 transactions involving nearly 7,500 units of affordable housing. These projects range dramatically in size from 20 to 200+ units with an average size of 66 units. Nearly 80 percent of our respondent’s transactions are new construction. There are several themes, trends and issues that are worth highlighting…

National Council of Affordable Housing Market Analysts (NCAHMA) has made available the PowerPoint slides presented during its recent 2009 Affordable Housing Underwriting Forum & Annual Meeting, held November 9-10, 2009 at the Doubletree Hotel Magnificent Mile in Chicago, IL.

The Internal Revenue Service (IRS) recently announced in Revenue Procedure 2009-50 the inflation-adjusted low-income housing tax credit (LIHTC) and private activity bond caps for 2010.

CEFAH has been working with Representative Mary Jo Kilroy (D-Ohio) and are pleased to report that she is well along in drafting “CEFAH legislation”. The draft legislation addresses a good portion of our legislative agenda (as laid out in our white paper from earlier this year)