Opportunity Zones: A New Tool for Community Development
In signing H.R. 1 (the Act) into law Dec. 22, 2017, President Donald Trump created a new tool for community development – a tool that provides tax incentives to help unlock investor capital to fund businesses in underserved communities.
Community Development Tax Credits: Damaged, but not Devastated
President Donald Trump's signing of the Tax Cuts and Jobs Act Dec. 22 brought the yearlong drama concerning tax reform–and its effect on community development tax credits–to a conclusion, leaving community development advocates rejoicing in the survival of LIHTC, PABs, NMTC, HTC, and ITC/PTC, but also wounded as they assessed the damage done to these tools.
Endangering Community Investment with Tax Reform
Though HTCs were preserved in the tax bill passed by Congress, its value was diminished. Instead of allowing investors to take the full value of the credit when a building opens, as they can now, it parcels out the credit over five years. Historic preservationists fear this change will decrease the attractiveness of the credit and consequently negatively impact its pricing.
Bill Introduced to Extend Colorado State LIHTC
Colorado state Sen. Jack Tate and three bipartisan co-sponsors introduced a bill this week to extend the state Low-Income Housing Tax Credit (LIHTC) program through 2024. The Colorado LIHTC was introduced in 2015 with a sunset date of Dec. 31, 2019.
NCSHA Board Approves Update to Recommended Best Practices
The National Council of State Housing Agencies board of directors approved a task force's report this month to update recommended best practices for administering the low-income housing tax credit. The report combines the NCSHA's recommended practices in LIHTC allocation and underwriting with its recommended practices in LIHTC compliance monitoring.
Wisconsin Legislation Would Increase Single-Parcel HTC Cap
Forty-nine Wisconsin state Legislators introduced a bill to increase the cap on state historic tax credits (HTCs) from $500,000 to $3.5 million for a single parcel.
What the New Tax Law Means for Renewable Energy Tax Credits
The final Republican tax bill that became law in December spared the wind and solar power industries from most attempts to roll back federal clean-energy incentives, but it left other renewable energy sources out in the cold, leading to calls for new legislation.
Former Pittsburgh Mill Receives $15M in TCs
PA Gov.Tom Wolf has announced that the state will pitch in $15 million in tax credits to expedite construction at Hazelwood Green — the site of a massive abandoned steel mill that a group of nonprofits hopes to transform into a bustling corporate hub for research and technology.
KY Angel Investment Tax Credit Reaches Annual Allotment in One Day
A state income tax credit on angel investments is in danger of collapsing under the weight of its own popularity — and because the money the state has allotted to the program may run out as early as this year. The credit, now in its fourth year, is so popular that applications for 2018 exceeded the annual $3 million cap in one day.
CT's New Stranded Tax Credit Program Aims to Improve Investment
Starting this year, the Department of Economic and Community Development (DECD) will accept applications from other companies that want to use their stranded credits in exchange for making major investments in buildings, infrastructure and Connecticut-based venture funds.