Tax Credit Tuesday Podcasts

One week ago, President Joe Biden signed The Inflation Reduction Act into law, legislation that includes major clean and renewable energy provisions, as well as raising a net total tax of about $90 billion over 10 years, according to the Joint Committee on Taxation. In this week's podcast, Michael Novogradac, CPA, is joined by Nat Eng, CPA, and Novogradac's director of public policy and government...

The U.S. Department of Treasury July 27 announced new frequently asked questions (FAQ) guidance to increase the use of Coronavirus State and Local Fiscal Recovery Funds (SLFRF) to boost the supply of affordable housing. In today's podcast, Michael Novogradac, CPA, and Novogradac partner Dirk Wallace, CPA, examine the guidance and implications for those in affordable housing. They begin by discussi...

Investment in qualified opportunity zones tracked by Novogradac surpassed $30 billion as of June 30, according to a special report published today. In today's podcast, Michael Novogradac, CPA, and Novogradac partner John Sciarretti, CPA, discuss highlights of the report, as well as other opportunity zones (OZs) issues. They begin by discussing key takeaways from the report, then look at how the ec...

Affordable housing'specifically that financed by tax-exempt, private-activity bonds and 4% low-income housing tax credits (LIHTCs)'is seeing the effects of rising interest rates and inflation. Those factors have implications on finances, meeting the 50% test and many decisions before and during property development. In today's podcast, Michael Novogradac, CPA, and Christina Apostolidis, CPA (and l...

On May 5, the three regulatory agencies that oversee the Community Reinvestment Act (CRA) proposed the first significant, interagency overhaul of CRA rules since 1995. Michael Novogradac, CPA, and Novogradac's director of public policy and government relations, Peter Lawrence, discuss in this week's Tax Credit Tuesday podcast what the proposed rules are, how they could affect community development...

The term sheet is where investors outline the principal terms and conditions of their investment in a tax credit transaction. When evaluating a term sheet, it's important for developers to look at a variety of factors and not just tax credit equity pricing. In today's podcast, Michael Novogradac, CPA, and Novogradac partner Thomas Boccia, CPA, share how developers can pursue an optimal balance bet...

The COVID-19 pandemic has killed more than 1 million Americans, while 87 million Americans have tested positive for the virus'creating an event that has affected virtually every aspect of life. For owners, operators, investors and tenants in affordable housing, the pandemic created both a health care crisis and a potential financial crisis that required new and different approaches. Novogradac exa...

How have capitalization rates changed over the past 12 months of rising inflation? Michael Novogradac, CPA, and Novogradac partner Lindsey Sutton discuss the effects of high inflation on observed market capitalization rates, as well as long-term debt financing.

Michael Novogradac, CPA, and Novogradac partner Frank Buss, CPA, help listeners answer three key questions regarding the new lease guidance, ASC 842: 1. What are the new operating lease accounting requirements? 2. How will the new standard affect various tax credit property partnerships? 3. What do you need to know about complying with the new lease guidance?

More than 130 nations are working toward an agreement to ensure that multinational corporations pay a minimum level of income taxes. The second of two "pillars" in this framework would ensure that the world's largest and most profitable companies are taxed in each jurisdiction in which they do business at an effective rate of 15%. Since any rate less than 15% would make the corporation subject to...

The vast majority of business and nonprofits that receive new markets tax credit (NMTC) financing serve low-income communities that are physically located in a low-income census tract. However, there's another underutilized method for businesses and nonprofits to qualify for NMTC financing that is not geography based. It's called the targeted populations approach. Michael Novogradac, CPA, and Novo...

The definition of qualified rehabilitation expenditures (QREs) is important not just for purposes of satisfying the substantial rehabilitation test. The amount of QREs determines the amount of historic tax credits a project is eligible for, meaning every additional dollar of QREs results in 20 cents more in tax credits. In this episode of Tax Credit Tuesday, Michael Novogradac, CPA, and Tom Fantin...

The historic tax credit (HTC) substantial rehabilitation test may seem simple on the surface, but there are some important nuances that even experienced developers may not be fully aware of. In this episode of Tax Credit Tuesday, Michael Novogradac, CPA, and Roy Chou, CPA, discuss what developers need to know about meeting the substantial rehabilitation test and planning their qualified rehabilita...

With much competition for 9% low-income housing tax credits (LIHTCs), more developers are turning to 4% LIHTCs to fund affordable housing'at the very time that competition for 4% LIHTCs (which are available to properties financed with tax-exempt private-activity bonds) is increasing. In this episode of Tax Credit Tuesday, Michael Novogradac, CPA, and Tabitha Jones, CPA, discuss the key differences...

Many solar energy developers do early stage work to get a property ready for construction, then they sell the property to a developer who takes control, raises equity to fund the development and begins construction. However, more early stage solar developers are considering the option of maintaining control of the property and handling the construction, including receiving funding through equity f...

The U.S. Department of Housing and Urban Development (HUD) last week posted income limits for fiscal year 2022 to determine eligibility for HUD-assisted programs as well as for low-income housing tax credit (LIHTC) and tax-exempt bond financed properties. The national median income was a 12.5% increase over 2021, but HUD set the cap on increases at 11.89%. In this episode of Tax Credit Tuesday, Mi...

Unlike other community development incentives that typically have seasoned developers and investors, renewable energy transactions often have developers and/or investors who are new to tax incentives. It's critically important that investors and developers understand the book accounting or generally accepted accounting principles (GAAP) and implications of their proposed and existing investments....

The introduction of the Opportunity Zones Transparency, Extension and Improvement Act in both houses of Congress last week brought attention to the opportunity zones (OZ) incentive. In this week's episode of Tax Credit Tuesday, Michael Novogradac, CPA, and Novogradac partner Brent Parker, CPA, discuss the legislation and preview next week's Novogradac 2022 Spring Opportunity Zones Conference in Lo...

Like with all of society, the COVID-19 pandemic had a dramatic effect on tenants and operations at low-income housing tax credit (LIHTC) properties. In this week's episode of Tax Credit Tuesday, Michael Novogradac, CPA, and Novogradac partner Blair Kincer, MAI, CRE, discuss the various ways the pandemic and its economic repercussions affected LIHTC properties. They discuss the overall impact, then...

The United States is experiencing the highest rate of inflation since the low-income housing tax credit (LIHTC) became a permanent part of the tax code and rising costs have a combination of effects on operators and tenants of LIHTC properties. In this week's episode of Tax Credit Tuesday, Michael Novogradac, CPA, and Novogradac partner Blair Kincer, MAI, CRE, discuss the ways inflation can affect...

Understanding the many requirements and nuances of the low-income housing tax credit (LIHTC) can mean the difference between delivering tax credits to investors on time or not. In this week's episode of Tax Credit Tuesday, Michael Novogradac, CPA, and Novogradac partner Tonya Johnson, CPA, discuss common pitfalls and risk areas that first-time LIHTC developers should be aware of so they can avoid...

Qualified opportunity funds (QOFs) tracked by Novogradac report an equity investment of $24.40 billion at the end of 2021, a jump of $6.88 billion in the final six months of the year, according to the Novogradac Opportunity Zones Investment Report: Data Through Dec. 31, 2021. In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner John Sciarretti, CPA, discuss da...

The federal historic tax credit (HTC) has led to more than $181 billion in investment over its 40 years, including $7.3 billion in investment in 2020. However, using the incentive to help fund the renovation of historic properties can be difficult to understand. In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Gregory Clements, CPA, examine the basics of t...

The new markets tax credit (NMTC) is one of the most effective community development financing tools available. Learn how to get started using the NMTC in this week's episode of Tax Credit Tuesday, with Michael Novogradac, CPA, and Novogradac partner Rebecca Darling, CPA. They discuss the two central participants in NMTC financing: the qualified active low-income community business (QALICB) and th...

Some people assume that IRS Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition, automatically means credit loss or recapture of low-income housing tax credits (LIHTCs). This week's Tax Credit Tuesday podcast with Michael Novogradac, CPA, and Novogradac's director of multifamily property compliance, Stephanie Naquin, dispels some of the fears and misconcep...