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CDFA Tax Credits Finance Update - December 26, 2023

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Tax Credits Finance Update
December 26, 2023
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Tax Credits Finance Update

Features

Join CDFA for the Return of the Fundamentals of Economic Development Finance Course
Join CDFA as we kick off the new year with the return of the Fundamentals of Economic Development Finance Course on January 24-25, 2024! This course is the foundation for all of CDFA's educational offerings and will help attendees understand the variety of development finance tools available including bonds, tax credits, tax increment financing (TIF), federal financing programs, RLFs, Opportunity Zones, and access to capital lending resources.

CDFA is Hiring a New Vice President of Development Finance
The Council of Development Finance Agencies is now accepting applications for Vice President, Development Finance. This position leads CDFA's development finance practice and is responsible for ensuring CDFA delivers on its research projects, resource collection, educational offerings, partnerships, and content creation. Want to join the CDFA family in Columbus, Ohio? Email your cover letter, resume, salary request, and three professional references to jobs@cdfa.net.

Mixed-Use Development in Riverton, NJ to Receive Upwards of $400M in State Tax Credits
State and local officials are lauding a decision by the New Jersey Economic Development Authority (NJEDA) Board to provide up to $400 million in Aspire tax credits for Riverton, a mixed-used, riverfront development being constructed off Chevalier Avenue. The project, when completed, represents more than two million square feet of newly-constructed residential and commercial space, including 1,300 new residential units, 20 percent of which will be designated as affordable. The project is associated with more than $1 billion in private investment.

Missouri Approves Millions in Tax Credits, Bonds for Housing
The Missouri Housing Development Commission approved 24 low-income housing projects financed by roughly $380 million in state and federal tax credits and tax-exempt bonds. Overall, the commission authorized $173.5 million in federal 9% credits, $121.4 million in state tax credits, $81.4 million in bond financing, and $7 million in other funding.

Remarkable Demand for Solar and Wind Energy in Low-Income Communities
The U.S. Department of the Treasury and Internal Revenue Service (IRS), in partnership with the Department of Energy (DOE), announced remarkable demand in the initial application period for solar and wind facilities through the Inflation Reduction Act's Low-Income Communities Bonus Credit Program. During the initial 30-day application window, the program received more than 46,000 applications for new energy facilities located in low-income communities, on Indian land, as part of affordable housing, or directly benefitting low-income households from across the country, including 48 states and the District of Columbia.

LIHTC Properties' NOI, Rental Income, Operating Expenses Set Record
Net operating income (NOI) at properties financed by Low-Income Housing Tax Credit (LIHTC) equity and tracked by Novogradac increased by 7.4% in 2022, surpassing the inflation rate as the nation emerged from the worst of the COVID-19 pandemic and faced the highest inflation in 40 years. Data in a 2023 LIHTC report from Novogradac showed both operating expenses and rental income surpassed the inflation rate – a 9.2% year-over-year increase in rental income and a 10.4% jump in operating expenses.

Innovation Economy Firms Receive $150M in Grants, Tax Credits in California
California Governor Gavin Newsom announced that more than $149 million in grants and tax credits is awarded to 12 companies in the state, creating nearly 6,000 full-time jobs and bringing in an estimated $1.3 billion in private investment over the next five years. Recipient companies include manufacturers and developers of electric aircraft, semiconductors, and artificial intelligence.

Workforce Housing, Brownfield State Tax Credits Help Convert Medical Center in Nevada, IA
The Nevada Economic Development Council is working to remodel a medical center building into residential apartments. The project is bolstered by a Brownfield 24% tax credit from the Iowa Economic Development Authority, which gives the project a maximum tax credit of $1.5 million. The Brownfield credit is coupled with a $1 million Workforce Housing tax credit.

Upcoming Events
Fundamentals of Economic Development Finance WebCourse

2024 CDFA Federal Policy Conference
April 2-3, 2024 - Washington, D.C.
Join CDFA at the 2024 CDFA Federal Policy Conference in Washington, D.C. on April 2-3, as we host the most important legislative and federal policy event of of the year.

Intro Tax Credit Finance WebCourse
September 25-26, 2024 - Daily: 12:00 PM - 5:00 PM Eastern
The Intro Tax Credit Finance Course examines the application of tax credit programs in greater economic development finance efforts. This course discusses the practical application of tax credit programs including brownfields, new markets, low-income housing, historic preservation, and state-specific programs.

More Headlines

Greenbacker Secures $92M Financing for Storage and Solar Portfolio
GlobeNewswire | Dec. 18 | Energy Finance | Green Finance | Tax Credits

U.S. Treasury Unveils Rules for Clean Energy Manufacturing Subsidy
Reuters | Dec. 18 | Energy Finance | Tax Credits | U.S. Dept. of Treasury

KeyBank Provides $90.7M for Acquisition, Rehab of Affordable Housing in Monroeville, PA
3BL | Dec. 15 | Housing Finance | Tax Credits | Low Income Housing Tax Credits (LIHTCs)

U.S. Treasury Issues Guidelines Around New Tax Credit for Sustainable Aviation Fuel
Barchart | Dec. 15 | Energy Finance | Tax Credits

Treasury, IRS Release Proposed Guidance for Advanced Manufacturing Production Credit
U.S. Department of the Treasury | Dec. 14 | Energy Finance | Green Finance | Internal Revenue Service (IRS) | Tax Credits | U.S. Dept. of Treasury

Biden Administration Issues Long-Awaited EV Tax Credit FEOC Guidance
JD Supra | Dec. 13 | Energy Finance | Infrastructure Finance | Tax Credits | U.S. Dept. of Energy (DOE) | U.S. Dept. of Treasury

Inflation Reduction Act Conservation Dollars are a Vital Bulwark Against Climate Change
National Sustainable Agriculture Coalition | Dec. 13 | Agriculture Finance | Energy Finance | Tax Credits | U.S. Dept. of Agriculture (USDA) | U.S. Dept. of Treasury

Highlights of Section 48 Investment Tax Credit Proposed Regulations
JD Supra | Dec. 8 | Energy Finance | Tax Credits

$14.4M Secured for Affordable Westview Heights Apartments in Denton, TX
Yield Pro | Dec. 8 | Housing Finance | Tax Credits | Low Income Housing Tax Credits (LIHTCs)

Middle-Income Housing Tax Credit Legislation Introduced in Congress
Novogradac | Dec. 7 | Housing Finance | Legislative | Tax Credits

How States Can Unlock Equitable Electrification with IRA Home Rebates
USGBC | Dec. 5 | Energy Finance | Housing Finance | Resiliency | Rural Development | Tax Credits | U.S. Dept. of Energy (DOE)

Work Begins on Phase One of $430M Colman Yards Mixed-Use Development in Illinois
Yield Pro | Dec. 1 | Economic Development | Revolving Loan Funds (RLFs) | Tax Credits

Tax Policy Leaders Focus on New Markets Tax Credit Permanence
News Direct | Dec. 1 | Legislative | Tax Credits | U.S. Dept. of Treasury CDFI Fund | Federal New Markets Tax Credits (NMTCs)

Enterprise Raises $444M in Two LIHTC Funds
Housing Finance | Nov. 30 | Housing Finance | Tax Credits | Low Income Housing Tax Credits (LIHTCs)

Indiana Affordable Project Obtains $17M LIHTC Financing
Multi-Housing News | Nov. 29 | Housing Finance | Tax Credits | Low Income Housing Tax Credits (LIHTCs)


New Additions to the Online Resource Database

Low-Income Housing Tax Credit: Opportunities to Improve Oversight
Housing Finance | Tax Credits
In this report from the U.S. Government Accountability Office (GAO), research finds that the cost of projects using the Low-Income Housing Tax Credit (LIHTC) varies widely and that there's minimal federal oversight. Currently, no federal agency has the authority to collect and report on this data for the tax credit, yet collecting better data would help resolve these issues. The report discusses challenges and opportunities for improving the LIHTC program to address the shortage of affordable housing nationwide.


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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CDFA National Sponsors

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