Tax Credit Finance Resource Center

Tax credit programs allow businesses and investors to claim a dollar for dollar tax credit for committing resources to a project or business. Tax credits reduce a taxpayer’s tax liability. They are not a deduction. Rather they come off of the taxpayer’s total tax liability. In order to receive a tax credit, an investor must demonstrate that their investment has been made. Such a resource commitment could be an investment in a bricks and mortar real estate project or a cash investment in a business. The distributor of the tax credit is authorized to issue credit based on the actual outlay of resources as evidenced by the investor. Tax credits can be used for several purposes in development projects: to provide an increased internal rate of return for investors, to reduce the interest rates on a particular financing package, and perhaps most importantly, to provide a repayment method for investors in place of cash. In the latter case, the credits can often be sold on the secondary market to generate income.

Tax credits are also flexible. They can be used in urban, rural and suburban communities, and in some cases on a regional basis. They can also provide a targeted impact by addressing many different community sectors, such as low-income neighborhoods, historic districts and underserved markets that present opportunities for new investment. There are three main federal tax credit programs – New Markets Tax Credits, Historic Rehabilitation Tax Credits and Low-Income Housing Tax Credits. There are also dozens of state tax credit programs.

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+Understanding Tax Credits

Tax Credits are a useful tool for development finance professionals. CDFA has collected many resources to help you understand this important tool.

Charlie's Tip for the Long "Brown" Summer: Federal Investment and Economic Development Tax Incentives for Brownfields Financing Members only

Charlie Bartsch with ICF International looks at creative ways to finance brownfields redevelopment under tighter credit markets. The report looks at financing vehicles such as historic rehabilitation tax credits, new markets tax credits, energy efficiency construction tax credit incentives and low-income housing tax credits to provide financing for these programs.

Support Tools for Local Initiatives - Federal Funds for ED Members only

Charlie Bartsch with the U.S. Environmental Protection Agency covers a slew of federal financing programs available to support local economic development initiatives. Bartsch provides case studies and examples of how various programs can be applied locally.

Assembling Capital for Mixed-Use Development Members only

Thomas Porter, Director of Commercial Lending at the Vermont Economic Development Authority, discusses unique development financing solutions for mixed-use development.

New Market Tax Credits and Brownfields Members only

Jim Walker discusses how the ability of the NMTC program to expand the availability of credit, investment capital, and financial services in distressed urban and rural communities makes this financing tool a viable option for brownfields redevelopments. Through best practices and case studies, this session examines the NMTC structure that's been shown to produce financing and attract developers to brownfield projects in Florida.

Financing for Attainable Housing Members only

Mitch Rosenstein discusses how the workforce housing movement is building in Florida and talks about the different financing tools that can be assembled to address the gap needed to make workforce housing and affordable housing available.

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+New Markets Tax Credit Resources

The NMTC Program attracts private capital into low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making equity investments in specialized financial intermediaries called Community Development Entities (CDEs).

NMTCs Serve Up New Space for Food Business Entrepreneurs Members only

For partners in the $17.5 million L.A. Prep project, the recipe for a successful food business accelerator calls for equal parts social philanthropy, economic development and collaborative synergy. L.A. Prep was financed using $16 million in NMTC allocation from the Los Angeles Development Fund and from UrbanAmerica..

Charlie's Tip for the Long "Brown" Summer: Federal Investment and Economic Development Tax Incentives for Brownfields Financing Members only

Getting to the Financing Tools “Nuts & Bolts”Members only

Charlie Bartsch, Senior Program Advisor at the US Environmental Protection Agency, explains the federal tax incentives applicable to brownfields redevelopment.

Support Tools for Local Initiatives - Federal Funds for ED Members only

Updated NMTC Census Tracts and Transition Rules Members only

How does the Community Development Financial Institutions (CDFI) Fund’s release of the New Markets Tax Credit (NMTC) program census data transition affect an NMTC investment?

View More New Markets Tax Credit Resources

+Historic Tax Credit Resources

The Federal Historic Preservation Tax Incentives program encourages private sector investment in the rehabilitation and re-use of historic buildings.

Charlie's Tip for the Long "Brown" Summer: Federal Investment and Economic Development Tax Incentives for Brownfields Financing Members only

Getting to the Financing Tools “Nuts & Bolts”Members only

Charlie Bartsch, Senior Program Advisor at the US Environmental Protection Agency, explains the federal tax incentives applicable to brownfields redevelopment.

Getting to the "Nuts & Bolts"Members only

The various financing tools and approaches for brownfields redevelopment is described by Charlie Bartsch from the U.S. Environmental Protection Agency.

Historic Preservation: An Overlooked Economic Driver, A Study of the Impacts of Historic Preservation in Rhode Island Members only

Historic preservation pays dividends for Rhode Island – its economy, its environment, and its quality of life. The pages that follow identify the ways and the means that Rhode Island benefits.

Annual Report of HTC FY 2017 Members only

Over $5.8 billion in private investment in historic preservation and community revitalization. Along with an estimated 106,846 jobs created in the 2017 fiscal year.

View More Federal Historic Tax Credit Resources

+Low Income Housing Tax Credit Resources

The Low-Income Housing Tax Credit (LIHTC) is the most important resource for creating affordable housing in the United States today.

Charlie's Tip for the Long "Brown" Summer: Federal Investment and Economic Development Tax Incentives for Brownfields Financing Members only

Getting to the Financing Tools “Nuts & Bolts”Members only

Charlie Bartsch, Senior Program Advisor at the US Environmental Protection Agency, explains the federal tax incentives applicable to brownfields redevelopment.

Getting to the "Nuts & Bolts"Members only

The various financing tools and approaches for brownfields redevelopment is described by Charlie Bartsch from the U.S. Environmental Protection Agency.

Support Tools for Local Initiatives - Federal Funds for ED Members only

Understanding Whom the LIHTC Serves: Data on Tenants in LIHTC Units as of December 31, 2015 Members only

This report summarizes data received from the state housing finance agencies (HFAs) that administer the Low Income Housing Tax Credit. The HFAs are required by the Housing and Economic Recovery Act (HERA) of 2008 to submit certain demographic and economic information on tenants in LIHTC units to the HUD.

View More Low Income Housing Tax Credit Resources

+State Tax Credit Resources

State Energy Tax Credits
State Historic Tax Credits
State Job Creation Tax Credits
State New Markets Tax Credits
State Tax Credit Programs

+Case Studies

Tax credits are flexible and can be used at many different levels. CDFA has collected over one hundred case study examples.

Assembling Capital for Mixed-Use Development Members only

Thomas Porter, Director of Commercial Lending at the Vermont Economic Development Authority, discusses unique development financing solutions for mixed-use development.

Assembling Capital for Mixed-Use Development Members only

Abby Goldenfarb discusses unique development financing solutions for mixed-use development.

New Market Tax Credits and Brownfields Members only

Kurt Peterson discusses how the ability of the NMTC program to expand the availability of credit, investment capital, and financial services in distressed urban and rural communities makes this financing tool a viable option for brownfields redevelopments. Through best practices and case studies, this session examines the NMTC structure that's been shown to produce financing and attract developers to brownfield projects in Florida.

Creative Financing Strategies - Hahne & Co. Redevelopment, Newark Members only

Unique development financing solutions are increasingly sought after to complete projects of all sizes, and it is often necessary to find creative approaches that involve combining multiple financing tools. Mathew Abraham of the New Jersey Economic Development Authority discusses the Hahne & Co. Redevelopment project in Newark.

A Look at Financing First Time Farmers in Iowa Members only

Tammy Nebola from the Iowa Agricultural Development Division of the Iowa Finance Authority discusses farming in Iowa and what it takes to finance first time farmers around the state.

View More Case Studies

+Headlines

Communities throughout the country use tax credits every day and CDFA collects headlines on projects and news daily.

Indianapolis, IN Theatre Considering, TIF, NMTC, Bonds
Indianapolis Business Journal | Apr. 19 | Bond Finance | Tax Credits | Tax Increment Finance (TIF)

RBCCM's Tax Credit Equity Group Closes $158.4M LIHTC Fund
Affordable Housing Finance | Apr. 19 | Access to Capital | Tax Credits

Spectra Developers Will Add 258 Apartments On Prominent Corner in Downtown Hartford, CT
Hartford Courant | Apr. 19 | Brownfield Financing | Tax Credits

Mission Valley's Civita Breaks Ground on Low-Income Rentals
The San Diego Union-Tribune | Apr. 18 | Access to Capital | Bond Finance | Tax Credits

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+Publications

CDFA publishes several guides that discuss tax credit finance. Purchase them today in the CDFA Bookstore.

DFCP Study Pack

The DFCP Complete Book Package contains all of the reference guides to study for the DFCP final exam at a 10% discount.

Practitioner's Guide to Economic Development Finance 2nd Edition

The Practitioner's Guide provides the insight and practical information needed to critically understand how economic development is financed and the tools, strategies and techniques used to build strong communities.

Tax Credit Finance Reference Guide

The Tax Credit Finance Reference Guide provides an exploratory overview of how communities can use tax credit finance programs to support economic growth. This guide examines how to effectively apply tax credits to development opportunities, and explains the basics of tax credits and the fundamentals of using these tools.

Unlocking Capital: A Handbook for Becoming a High Performing Development Finance Agency

The Handbook is designed to be a starting point for local leaders to engage in the creation or acceleration of a DFA to build and utilize the development finance toolbox.

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+Training Courses

CDFA Offers two tax credit courses on an annual basis.

The Intro Tax Credit Finance WebCourse examines the application of tax credit programs in greater economic development finance efforts. This course will discuss the practical application of tax credit programs including brownfields, new markets, low income housing, historic preservation, and state-specific programs.

The Fundamentals Course will help you understand the variety of development finance tools available, from bonds, tax credits and TIF, to federal financing programs, RLFs, and access to capital lending resources.

+Webcasts

CDFA // BNY Mellon Webcast Series: Making the Most of $7B in NMTC Allocation Members only

Tax Credits | Webcasts

During this installment of the CDFA // BNY Mellon Development Finance Webcast Series, our expert speakers provided an inside look into how New Markets Tax Credits can be leveraged and considered opportunities that the double allocation round creates for qualifying projects.

CDFA // BNY Mellon Webcast Series: Exploring the Newark Development Renaissance Members only

Historic Preservation | State Finance Program | Tax Credits | Urban Development | Webcasts

During this CDFA // BNY Mellon Development Finance Webcast, explore financing programs and investment strategies that Newark, New Jersey has employed to encourage redevelopment in the city.

CDFA // BNY Mellon Webcast Series: Framing the National Incentives Discussion Members only

In this edition of the CDFA // BNY Mellon Development Finance Webcast Series, Ellen Harpel from Smart Incentives, Dan Breen from Jones Lang LaSalle, and Heidi Springer from New York Grant Company each give their perspectives of the incentives landscape.

CDFA Brownfields Financing Webinar Series: New Investments with NMTC

As part of the CDFA Brownfields Technical Assistance Program, this third installment of the Brownfields Financing Webinar Series focuses on the recent allocation of $3.5 billion in New Markets Tax Credit awards by the U.S. Treasury Department’s CDFI fund and the significant potential this tool has to support the financing of brownfields cleanup and redevelopment.

CDFA-Stifel Webcast: Downtown Revitalization Finance Strategies Members only

Access to Capital | Economic Development | Rural Development | Tax Credits | Webcasts

In the second installment of the CDFA-Stifel Small, Medium and Rural Community Development Finance Webcast Series, speakers focus on small town and rural community downtowns, and how to successfully revitalize them through creative financing structures.

View More Webcasts