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.
New Market Tax Credits and BrownfieldsMembers only Login
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 HousingMembers only Login
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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.
+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 EntrepreneursMembers only Login
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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..
+Historic Tax Credit Resources
+Low Income Housing Tax Credit Resources
+State Tax Credit Resources
Tax credits are flexible and can be used at many different levels. CDFA has collected over one hundred case study examples.
New Market Tax Credits and BrownfieldsMembers only Login
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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.
Communities throughout the country use tax credits every day and CDFA collects headlines on projects and news daily.
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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.
Tax Credit Finance Reference Guide
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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.
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.
CDFA Brownfields Financing Webinar Series: New Investments with NMTC
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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.