Issue Overview & Legislative Proposal:
| Federal Taxation on Partnerships Receiving Capital from Contributions TIFs |
Issue Brief:
CDFA is working with the International Council of Shopping Centers (ICSC) to address federal taxation issues concerning partnerships who receive capital contributions from tax increment financed projects. Section 118 of the federal tax code does not currently apply income tax exemptions to partnerships who receive capital contributions such as TIFs. This technical error has caused many partnership driven development projects to not materialize and CDFA and ICSC are working to introduce legislation in Congress to eliminate this restriction. Legislation has been prepared and is currently being circulated. CDFA is also working with the CDFA Tax Increment Finance Coalition to address this issue.
Legislative Proposal:
Resources: