The CDEs that applied under the 2018 round are headquartered in 43 states, the District of Columbia, and Puerto Rico. These applicants requested an aggregate total of $14.8 billion in NMTC allocation authority, over four times the $3.5 billion in authority available for the 2018 round.

Reps. Jason Smith (R-MO) and Terri Sewell (D-AL) introduced the Rural Jobs Zones Act, bipartisan legislation that would expand NMTC allocation authority for projects targeted at certain rural communities. The bill would provide $500 million in additional NMTC authority for both 2018 and 2019, targeted at Rural Job Zones.

While Opportunity Zone Fund equity will not fully mitigate the lost value of the credit from the corporate tax rate deduction, it provides an intelligent way of adding equity to tax credit developments in underserved communities and, potentially, could attract a new cohort of investors to the tax credit equity market.

The Restoring Tax Credits for Affordable Housing Act will restore the 235,000 affordable housing units projected to be lost over the next ten years as a result of the Tax Cuts and Jobs Act. The Act increases the Low-Income Housing Tax Credit (LIHTC) allocation and improves the credit percentage formula to promote affordable housing. 

The ITC provides a credit to taxpayers equal to a percentage of the basis of qualifying energy property, which percentage varies depending on the type of such property, the year in which construction begins, and the year in which the property was placed in service. In general, the ITC Notice is similar to guidance provided for wind facilities qualifying for the ITC.

For a provision that's been an enduring part of the federal tax code for 40 years, the historic tax credit (HTC) has been on a bit of a roller coaster ride the past 18 months. The concerns about elimination of the credit were real, as last winter's landmark tax legislation threatened the continuation of the credit and ultimately eliminated the 10 percent rehabilitation credit for non-historic properties.

The last twenty years have seen an explosion of state tax credit programs, including historic rehabilitation/preservation credits, economic development credits, and even individual credits to assist first responders and veterans. But growing with this expansion is concern that states have no way of knowing whether a particular program is working. However, reform in this area is picking up steam.

Seven of the 10 projects approved are financed through the 2018 low-income housing tax credit (LIHTC) competition. Three of them were made possible by the recent nationwide increase of 12.5% in the housing tax credit.

These recommendations, if adopted, may also help certain New Jersey corporate investors that earn more than $1 million in income to offset the tax rate increase enacted with the recent passage of the state budget. The Task Force's underlying rationales apply with equal force to tech and tech-enabled companies.

CDFA Brownfields Financing Webinar Series:The Developer's Perspective in Financing Brownfield Projects
September 6, 2018 - 2:00 - 3:30 PM Eastern

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