Tax Credit Tuesday Podcasts

Standalone energy storage became eligible for the renewable energy investment tax credit (ITC) through a provision in the Inflation Reduction Act, which was signed into law last summer. In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, discusses the implications and opportunities for that with Rob Bryant, CPA, a Novogradac partner. They examine the need for storage, how storage's...

As the new markets tax credit (NMTC) community concludes a busy period between the award of one round and the applications for another, some community development entities (CDEs) will turn their sights toward NMTC compliance reporting. In this week's podcast, Michael Novogradac, CPA, and Austin Power, CPA, provide an overview of NMTC compliance reporting, why it's valuable to the Community Develop...

Qualified opportunity funds being tracked by Novogradac reported nearly $10 billion in equity investment during 2022 and we recently began another session of Congress with a possibility of legislation to extend and enhance the opportunity zones (OZ) incentive. In this week's podcast, Michael Novogradac, CPA, and John Sciarretti, CPA, discuss the state of incentive and the chances for changes eithe...

The fiscal year (FY) 2023 round of the Capital Magnet Fund is now open and the deadline to apply is March 21. The Community Development Financial Institutions (CDFI) Fund plans to award up to $320.6 million to CDFIs and qualified nonprofit housing organizations through the FY 2023 round. Michael Novogradac, CPA, and Novogradac partners Amanda Read, CPA, and Brent Parker, CPA, discuss Capital Magne...

There are two overarching ways to structure a historic tax credit transaction: the direct investment structure and the pass-through lease structure. How do the structures differ and how can you choose the right structure for your project? Michael Novogradac, CPA, and Novogradac partner John DeJovine, CPA, discuss the pros and cons of each structure for developers and investors, as well as other co...

The affordable housing industry continues to work through the challenges of the COVID-19 pandemic, including for some public housing authorities (PHAs) a return to the office and an opportunity to re-evaluate internal controls. In this week's podcast, Michael Novogradac, CPA, and Rich Larsen, CPA, discuss four ways PHAs can protect against fraud, with special attention on rent collections, buildin...

Form 8609 is the IRS document that credit allocating agencies give to property owners as evidence that the owner is eligible to claim low-income housing tax credits (LIHTCs). Developers should understand how to complete Form 8609 and its various elections because an improperly completed form can result in the loss of credits on a building-by-building basis. Michael Novogradac, CPA, and Craig Stasw...

The coming year is set up to be a significant one for regulatory guidance and community development tax incentives. In this week's podcast, Michael Novogradac, CPA, and Peter Lawrence, Novogradac's director of public policy and government relations, discuss the coming year and look at the key issues for Novogradac's seven tax incentive working groups. They look at the key emphasis for each group a...

The U.S. Department of Housing and Urban Development (HUD) recently announced it would use 2021 American Community Survey data to determine fiscal year (FY) 2023 income limits, which are used to determine who can live in properties financed with low-income housing tax credits (LIHTCs). In this week's episode of Tax Credit Tuesday, Michael Novogradac, CPA, and Thomas Stagg, CPA, parse several types...

The Community Development Financial Institutions (CDFI) Fund is authorized to award up to $5 billion in new markets tax credit (NMTC) allocation authority under the calendar year 2022 round. Michael Novogradac, CPA, and Nicolo Pinoli, CPA, discuss five ways community development entities can strengthen their allocation applications in preparation for the Jan. 26, 2023, deadline for the calendar ye...

In this week's installment of the "So You Want to Be a LIHTC Developer" series, Michael Novogradac, CPA, is joined by Novogradac partner Christina Apostolidis, CPA to discuss keys to successfully meeting tax, audit and investor deadlines for low-income housing tax credit (LIHTC) properties. They discuss the tax and audit requirements, then look at the importance of hiring an experienced tax credit...

In this installment of the "So You Want to be a LIHTC Developer" series, Michael Novogradac, CPA, is joined by Novogradac partner Blair Kincer and Novogradac principal Kelly Gorman to discuss the annual Novogradac LIHTC operating expenses and income report. They discuss overall impressions from the report, which includes a survey of nearly 125,000 units financed by the low-income housing tax credi...

In this installment of the "So You Want to Be a LIHTC Developer" series, Michael Novogradac, CPA, and guests Warren Sebra, CPA, discuss final cost certifications, one of the necessary benchmarks for receiving low-income housing tax credit (LIHTC) equity. They discuss cost certification basics, examples of eligible costs, ways to enhance eligible basis and tips and recommended practices for LIHTC d...

An expected red-wave election for Republicans in the Senate and the House of Representatives ended up being closer than expected, with the Democratic Party retaining control of the Senate and the House of Representatives undecided (although trending toward Republican control). In this week's podcast, Michael Novogradac, CPA, and Peter Lawrence, Novogradac's director of public policy and government...

The CDFI Fund late last month announced the calendar year 2021 (CY 2021) new markets tax credit (NMTC) allocation awards, allocating $5 billion in NMTC authority to 107 community development entities (CDEs). In this week's podcast, Michael Novogradac, CPA, is joined by Brad Elphick, CPA, and Rebecca Darling, CPA, to discuss what we learned from the awards announcement, as well as what CDEs should...

Novogradac Tax Credit Tuesday is launching its "So You Want to Be a LIHTC Developer" series, which is meant to be a useful guide to executing a successful low-income housing tax credit development. In this week's episode, Michael Novogradac, CPA, and guests Jeff Nishita, CPA, and Melissa Chung, CPA, discuss assessing the financial feasibility of a proposed LIHTC development or redevelopment, inclu...

The Inflation Reduction Act has $369 billion in clean energy and renewable energy provisions, including the allowance of certain energy tax credits to be separately transferred, the allowance of qualified tax-exempt entities to elect to get a refund of certain tax credits in lieu of syndicating them and the extension of certain tax credits. The Novogradac Renewable Energy Tax Credit Working Group...

Over the past decade, public housing authorities (PHAs) have converted 1,558 projects, including 206,181 housing units, under the U.S. Department of Housing and Urban Development's Rental Assistance Demonstration (RAD) program, representing more than $14.9 billion of in affordable housing. Michael Novogradac, CPA, and Novogradac partner Rich Larsen, CPA, discuss what PHAs and their RAD consultants...

The Internal Revenue Service on Oct. 7 issued final and temporary regulations for the low-income housing tax credit (LIHTC) average-income set-aside test. Michael Novogradac, CPA, and Novogradac's director of multifamily compliance, Stephanie Naquin, discuss unit designations and the cliff test under the new regulations. They also compare the final regulations with the previously proposed regulati...

The U.S. Census Bureau recently released 2021 American Community Survey (ACS) data, a key ingredient in determining rent and income limits for affordable housing properties. In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Thomas Stagg, discuss the data release and its effect on 2023 and 2024 rent and income limits. They begin by clarifying difficulties wi...

Year 15 for low-income housing tax credit properties'the end of the initial compliance period and when the investor partner often has received substantially all its tax benefits'is a crucial period for affordable housing properties. In today's podcast, Michael Novogradac, CPA, and Novogradac partner Kevin Wilson, CPA, discuss the issues that arise and considerations for LIHTC properties at Year 15...

The announcement of new markets tax credit (NMTC) allocation awards are expected soon, with the next allocation round opening after that. Well informed and well positioned businesses have a great opportunity to secure NMTC financing, even if they were not originally in a community development entity's pipeline. Michael Novogradac, CPA, and Novogradac partner Matt Meeker, CPA, discuss how to close...

With the upcoming allocation round of the new markets tax credit (NMTC) looming, now is a great time for qualified active low-income community business (QALICBs) to know the important roles in an NMTC transaction as well as potential ways to leverage the sources in their capital stack. In this week's Tax Credit Tuesday podcast, the second of a three-part NMTC series, Michael Novogradac, CPA, and N...

The new markets tax credit (NMTC) incentive provides $5 billion a year in allocation authority to community development entities (CDEs) to support businesses in low-income communities or those that support low-income people. As a qualified active low-income community business (QALICB), there are standards to meet and competition with which to contend to receive the financing. In this week's podcas...

In this week's podcast, Michael Novogradac, CPA, and Novogradac partner Brent Parker, CPA, discuss how the Inflation Reduction Act makes it more affordable to include renewable energy and energy efficiency measures in residential rental real estate. They discuss an extension of the Section 45L new energy efficient home credit, qualification updates under the Section 179D deduction and retroactive...