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CDFA Tax Credits Finance Update - April 23, 2024

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Tax Credits Finance Update
April 23, 2024
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Tax Credits Finance Update

Features

Two Companies Enter Historic Deal to Manufacture Solar Panels Domestically
Thanks to a $400 million, three-year deal between Heliene and Suniva, solar panels and cells will be entirely made in the U.S., a unique combination until now. Leaders from both companies pursued the deal to take advantage of a 10% Domestic Content Bonus Investment Tax Credit.

NeighborWorks Capital, National Equity Fund Form LIHTC Equity Fund to Empower Partners
NeighborWorks Capital, a national non-profit Community Development Financial Institution (CDFI), has partnered with National Equity Fund (NEF), a leading non-profit multi-family, affordable, real estate investment manager, to launch the NeighborWorks Capital Equity Fund. This first-of-its-kind equity fund will provide high-performing community-based non-profit organizations with a set of standardized, equitable Low-Income Housing Tax Credit (LIHTC) terms.

Join CDFA for the Return of the Revolving Loan Fund WebCourse Week!
Revolving Loan Fund WebCourse Week is returning with the intro level on May 13-14 followed by the advanced level on May 15-16. Register for one or both of these courses to learn from experts about developing, implementing, and managing efficient and impactful revolving loan fund programs.

NPS Launches Sustainability, Energy Efficiency, and Resilience in Historic Buildings Site
The National Park Service (NPS), which oversees the federal historic tax credit (HTC) incentive, launched a new web page with information on sustainability, energy efficiency, and resilience in historic buildings. This is the first time that information is gathered on one site. The NPS also issued new guidance on resilience to natural hazards, adapted from guidance issued in 2017 and 2021.

USDA Rural Housing Service Amends Use of LIHTC Qualified Contract Loophole
U.S. Department of Agriculture Rural Housing Service (RHS) recently announced amendments to the Section 538 Guaranteed Rural Rental Housing Program (GRRHP). This announcement stated that the added flexibilities will allow RHS to prioritize investments in projects that waive their "Qualified Contract" rights. The rule change will allow for Low-Income Housing Tax Credit developments in rural areas to remain affordable to residents during the 30-year period established by the LIHTC program.

Challenges and Benefits of Using – But Not Combining – NMTCs, LIHTCs in a Development
The development of a building in a low-income community with both commercial and residential rental uses presents several issues when considering the use of the federal Low-Income Housing Tax Credit (LIHTC) and/or New Markets Tax Credit (NMTC) incentives. Navigating the complexities of the LIHTC and NMTC programs requires careful consideration of the composition and intended uses of the building, as well as adherence to the specific requirements outlined by the LIHTC and NMTC incentives.

Can Adaptive Reuse Revitalize U.S. Cities?
Communities nationwide are looking for creative ways to reuse vacant, outdated, or underutilized real estate in the form of offices, hotels, manufacturing sites, warehouses, department stores, and terminals. The Biden Administration announced proposals and guidance for states, municipalities, and developers to repurpose underutilized commercial properties into affordable housing, highlighting existing tax credits and programs available for conversions - including the Low-Income Housing Tax Credit, a Workforce Housing Tax Credit, and the Historic Tax Credit.

Maximizing Tax Credits By Installing Solar at LIHTC Projects
Increased interest in installing solar at affordable housing projects has grown since the IRC Section 48 energy investment tax credit (ITC) could subsidize as much as 70% of the cost and the Inflation Reduction Act (IRA) has made it easier to monetize the ITC. The benefits for installations at affordable housing projects that qualify for the Low-Income Housing Tax Credit (LIHTC) under Section 42 are even greater because LIHTCs are no longer reduced if the ITC is claimed. Further, with appropriate structuring, many states include the solar cost in basis for purposes of the LIHTC calculation.

Upcoming Events
Intro Revolving Loan Fund WebCourse

CDFA Tribal Finance Webinar Series: Empowering Native Entrepreneurs Through Access to Capital
April 23, 2024 - 2:00 PM - 3:30 PM Eastern
During this installment of the CDFA Tribal Financing Webinar Series, practitioners will present strategies and highlight finance programs that are helping to increase access to capital and aiding the creation of successful small businesses.

CDFA Food Systems Finance Webinar Series: Financing Food Systems with Revolving Loan Funds
April 30, 2024 - 2:00 PM - 3:30 PM Eastern
During this installment of the CDFA Food Systems Finance Webinar Series, panelists will discuss how revolving loan funds can be used to support small businesses, entrepreneurs, and microenterprises to strengthen local and regional food systems. The discussion will also identify how these tools can help unlock affordable capital for socially disadvantaged farmers and ranchers.

More Headlines

Colorado Pitches Incentive Proposals to Capture More Manufacturers
9 News | Apr. 21 | Energy Finance | Incentives | Tax Credits

Century-Old School Building in Owosso, MI to Become Affordable Housing
Second Wave Media | Apr. 18 | Historic Preservation | Housing Finance | Tax Credits | Low Income Housing Tax Credits (LIHTCs)

Section 45V Clean Hydrogen Production Credit Proposes Guidance
Novogradac | Apr. 18 | Energy Finance | Tax Credits

How to Take Advantage of Transferability of Tax Equity Through the Inflation Reduction Act
Thomson Reuters | Apr. 17 | Energy Finance | Internal Revenue Service (IRS) | Tax Credits

Chicago, IL Multifamily Developer Awarded $4.5M in LIHTC for Riverdale Renovation Project
Connect CRE | Apr. 12 | Housing Finance | Tax Credits | Low Income Housing Tax Credits (LIHTCs)

Fort Smith, AR Community School of the Arts Awarded $5M for New Charter School
KNWA | Apr. 12 | Education | Tax Credits | Federal New Markets Tax Credits (NMTCs)

Rich Products Begins Phase Two of $177M Expansion in Brownsville, NY
my GRV | Apr. 10 | Food Systems Finance | Tax Credits | Federal New Markets Tax Credits (NMTCs)

Nuvera Awarded $14M Federal Tax Credit Allocation to Expand Fuel Cell Production
Green Car Congress | Apr. 9 | Energy Finance | Green Finance | Resiliency | Tax Credits | Renewable Energy Investment Tax Credit (ITC)

Nth Cycle Receives $7.2M 48C Tax Credit Allocation from DOE for Critical Metal Refining Facility in Fairfield, OH
PR Newswire | Apr. 9 | Energy Finance | Tax Credits | U.S. Dept. of Energy (DOE)

IRS Reallocates $8.2M in Unused LIHTCs From 2022, Nearly Tripling Earlier Amount
Novogradac | Apr. 8 | Housing Finance | Tax Credits | Low Income Housing Tax Credits (LIHTCs)

Ashtabula County, OH Agriculture Tax Credit Applications Break Records
Star Beacon | Apr. 8 | Agriculture Finance | State Finance Program | Tax Credits

Fort Wayne, IN Allocates $10M in Tax Credits for Arts United Center Project
Building Indiana Business | Apr. 7 | Community Development | Tax Credits | Federal New Markets Tax Credits (NMTCs)

Amazon and Virginia Housing Commit $85M to Northern Virginia Affordable Housing Project
Connect CRE | Apr. 5 | Housing Finance | Tax Credits | Low Income Housing Tax Credits (LIHTCs)

Developers Mark Start of Construction for $300M Transformation in Richmond, VA
Richmond Biz Sense | Apr. 5 | Housing Finance | Tax Credits | Low Income Housing Tax Credits (LIHTCs)

Housing Project in Battle Creek, MI Getting $1.65M Boost From LIHTC
Battle Creek Enquirer | Apr. 4 | Housing Finance | Tax Credits | Low Income Housing Tax Credits (LIHTCs)

$165M Senior Housing Redevelopment Project Opens Phase 2 in Camden, NJ
Multi-Housing News | Apr. 4 | Housing Finance | Tax Credits | Low Income Housing Tax Credits (LIHTCs)


New Additions to the Online Resource Database

IRS Announcement 24-19 - Tax Treatment for Energy Efficient Property
Energy Finance | Green Finance | Incentives | Legislative | Tax Credits
This announcement addresses the Federal income tax treatment under the Internal Revenue Code of amounts paid toward the purchase of energy efficient property and improvements under the Department of Energy Home Energy Rebate Programs pursuant to the Inflation Reduction Act of 2022.


The Council of Development Finance Agencies (CDFA) is a national association dedicated to the advancement of development finance concerns and interests. CDFA is comprised of the nation's leading and most knowledgeable members of the development finance community representing public, private and non-profit entities alike. For more information, visit www.CDFA.net or email info@cdfa.net


Council of Development Finance Agencies
100 E. Broad Street, Suite 1200
Columbus, OH 43215
(614) 705-1300
info@cdfa.net

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