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The One Big Beautiful Bill Act (OBBBA), approved July 4, 2025, made the opportunity zone (OZ) incentive permanent and made several significant changes to the program. One key change is that, effective Jan. 1, 2027, each state will designate new OZs. On this episode of the Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Jason Watkins, CPA, discuss these changes and how they will impact tax incentives and eligibility criteria for qualified OZ investors. Novogradac and Watkins explain where the program stands and discuss a variety of issues that require guidance or clarification from the U.S. Department of the Treasury, including the designation of new census tracts. The pair also discuss how Treasury will implement the transition from OZ 1.0 to OZ 2.0. Finally, Novogradac and Watkins discuss the various efforts of the Novogradac OZ Working Group to highlight potential issues and offer recommendations for implementation guidance in the form of three letters to Treasury.

The Historic Tax Credit (HTC) is a significant resource for developers hoping to rehabilitate historic properties, but nuances of the incentive, such as eligibility requirements and the closing process, can be intimidating for first-time developers. On this episode of the Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner John DeJovine, CPA, provide listeners a crash course in HTCs. The pair discuss gating issues developers may encounter in deciding whether to use HTCs. Novogradac and DeJovine also discuss various factors to consider throughout an HTC transaction, including how much equity might come from federal HTCs, subordination and non-disturbance agreements (SNDAs) and what counts as qualified rehabilitation expenditures (QREs). Fittingly, the two close the episode by reviewing the process of closing an HTC deal, from deal structuring to the developer's eventual exit.

The One Big Beautiful Bill Act (OBBBA), approved July 4, 2025, made various significant changes to the low-income housing tax credit (LIHTC) incentive. Among key changes, the OBBBA lowered the threshold for private activity bond (PAB) financing required to qualify for 4% LIHTCs from 50% of a development's land and building costs to 25%. On this episode of the Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Dirk Wallace, CPA, explore how this change is affecting financing for affordable housing development. Novogradac and Wallace provide an overview of the 25% test and PABs, including recycled PABs. The pair also discuss how states are implementing the 25% financed-by test, as well as the ways developers are overcoming the financing gap the new test created. Finally, Novogradac and Wallace conclude by discussing how to maximize net operating income (NOI) by approaching operating expenses as efficiently as possible.

Rental income and operating expenses for low-income housing tax credit (LIHTC) properties have seen significant increases over recent years. On this episode of the Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Kelly Gorman review the 2025 Novogradac Low-Income Housing Tax Credit Income and Operating Expenses Report, which provides an in-depth look at 2024 rental income, operating expenses and net operating income for LIHTC properties tracked by Novogradac. Novogradac and Gorman provide their perspective on the relationship between rental income and operating expenses, as well as annual and compound annual growth rates. The two then discuss the two largest operating income expenses, which were property insurance and repairs and maintenance, and how to handle those expenses in the underwriting and budgeting process.

Several major legislative changes rocked the tax credit world, last year. Key developments such as the One Big Beautiful Bill Act (OBBBA) will shape the tax credit landscape in 2026 and beyond. On this episode of the Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac's Chief Public Policy Officer Peter Lawrence explore the current state of tax credit legislation and what may be on the horizon for 2026. Novogradac and Lawrence discuss various tax incentives, including the historic tax credit, the Neighborhood Homes Investment Act and the HOPE Act. The pair also discuss two "bonus" tax incentives that potentially may be on the horizon, the workforce housing tax credit and the Downtown Revitalization and Main Streets Act. Finally, the two discuss banking-related bills such as the ROAD to Housing Bill and the Housing for the 21st Century Act, which may grant banks the ability to invest more in new construction and preservation developments.

The Community Development Financial Institutions (CDFI) Fund announced the awarding of $10 billion in new markets tax credit (NMTC) allocation authority Dec. 23, 2025, 'for the combined 2024-2025 allocation round, a record-breaking amount of aggregate issuance authority that led to a record-breaking number of awardees. On this episode of the Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partners Brad Elphick, CPA, and Rebecca Darling, CPA, discuss the key aspects of this round that made it significant and theorize what changes might come to NMTC allocation in the future. The three also discuss the reasons why the CDFI Fund's announcement was delayed, and how that might impact the timeline of the 2026 application round.

Public housing authorities (PHAs) are increasingly finding that common funding opportunities such as U.S. Department of Housing and Urban Development (HUD) financing is not meeting their operational or capital needs. With recent policy changes on the horizon that will further drain PHA resources, many are turning to programs such as Rental Assistance Demonstration (RAD). On this episode of the Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Rich Larsen, CPA, give a crash course on the RAD program and discuss how PHAs can utilize RAD to support their public housing developments. The pair also discuss how to most effectively utilize tax credit equity, such as low-income housing tax credit (LIHTC) equity, in RAD transactions.

Developers of affordable rental housing using low-income housing tax credits (LIHTCs) want to know what they can include in eligible basis calculations. In the latest installment in the "So You Want to Be a LIHTC Developer" series of the Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Christina Apostolidis, CPA, discuss three issues around eligible basis. First, they discuss the treatment of community service areas in the calculation for eligible basis. Next, Novogradac and Apostolidis cover enhancements made that are not physically part of the main development site, better known as off-site improvements. Finally, the pair discuss the issues around impact fees.'

The new markets tax credit (NMTC) incentive commonly is used to subsidize community development projects such as small businesses, day care centers, schools and public transportation, but the credit can also serve as a way to incentivize the development of for-sale housing in distressed neighborhoods. In this episode of Tax Credit Tuesday, Michael Novogradac, CPA, and Novogradac partner Nicolo Pinoli, CPA, discuss how developers and investors can best leverage NMTCs to support initiatives aimed at increasing homeownership among low-income households. Novogradac and Pinoli review what community development entities, investors and the various qualified businesses that are eligible to receive the NMTC subsidy should know about the requirements and process.

The complicated world of renewable energy tax credits (RETCs) can be challenging for even experienced investors to navigate. In this episode of the Renewable Energy Tax Credit Finance Series, Novogradac partners Tony Grappone, CPA, and Tom Boman, CPA, discuss the issues individuals and closely held corporations should be aware of when considering investing in RETC partnerships or buying transferable tax credits. Grappone and Boman discuss at-risk and passive activity rules and how they relate to renewable energy developments. The pair then dive into several hypothetical scenarios for each rule to help listeners better understand how the rules affect investors.

While changes to the low-income housing tax credit (LIHTC) will help address America's affordable housing shortage, there remains a significant gap to help renovate and preserve affordable rental housing'a gap that could be addressed by a proposed tax incentive that would allow nonprofit developers and property managers to raise capital from individual investors to finance those improvements. In this week's podcast, Michael Novogradac, CPA, Novogradac partner Kevin Wilson, CPA, and Peter Lawrence, Novogradac's chief public policy officer, discuss the proposal, including why there's a need, how it would work, where it is in the legislative process and how a new Novogradac working group is addressing the issue.

The Opportunity Zones (OZ) incentive has seen a number of exciting developments in 2025, in large part due to the One Big Beautiful Bill Act (OBBBA), which made the incentive permanent when the legislation was signed into law July 4. In this episode of Tax Credit Tuesday, Michael Novogradac, CPA, sits down with Novogradac partner Jason Watkins, CPA, to discuss the latest policy updates in the OZ incentive and the transition from OZ 1.0 tracts to OZ 2.0 tracts. Novogradac and Watkins discuss issues the Novogradac OZ Working Group has identified as requiring guidance from the Treasury, including dual OZ designations for 2027 and 2028, legacy business eligibility, and compliance with qualified OZ business (QOZB) tests. Finally, the pair discuss the process for designating the next round of OZs, as well as when and how best to begin preparing.

The One Big Beautiful Bill Act (OBBBA), signed into law July 4, expanded restrictions on Foreign Entity of Concern (FEOC) rules established by the Inflation Reduction Act in 2022. In this latest installment of the Renewable Energy Tax Credit Finance Series, Novogradac partners Tony Grappone, CPA, and Nicolo Pinoli, CPA, dive into the evolution of FEOC rules and how they affect a project's eligibility for renewable energy tax credits (RETCs). They then clarify the difference between types of prohibited foreign entities and identify key FEOC compliance issues of which developers and investors should be aware. Finally, they review the timeline of effective dates, as well as the penalties and recapture risks for non-compliance.

The One Big Beautiful Bill Act, approved July 4, introduced sweeping changes to various community development tax credits. In this episode of Tax Credit Tuesday, Michael Novogradac, CPA, sits down with Novogradac partners Brad Elphick, CPA, Tony Grappone, CPA and Dirk Wallace, CPA, to discuss what those changes are and how they are shaping the present and future of the tax credit equity market. The group reviews the various changes to the low-income housing tax credit (LIHTC), the new markets tax credit (NMTC) and the renewable energy tax credit (RETC) and their impact on tax credit supply and equity prices. Then, they discuss the ways in which these policies may impact the market in 2026 and 2027. Finally, the group dives into how developers can increase the equity pricing for their transactions.

Last month, the U.S. Census Bureau released the American Community Survey (ACS) data for 2024. In this episode of Tax Credit Tuesday, Michael Novogradac, CPA, and Novogradac partner Thomas Stagg, CPA, discuss the significance of the data. Stagg uses ACS data to create robust estimates as to what income and rent limits are likely to be in most areas when the U.S. Department of Housing and Urban Development (HUD) announces them next April. The pair start off by reviewing the various data points that affect the estimates, and Stagg shares his view as to what the 2026 year-over-year increases in rent and income limits will likely be for various areas. Finally, Novogradac and Stagg talk about the upcoming data releases that will help refine his estimates.

Navigating the process of raising tax credit equity can be a challenge even for experienced renewable energy developers, but it is a critical part of ensuring a project's success. In this latest installment of the Renewable Energy Tax Credit Finance Series, Michael Novogradac, CPA, and Novogradac partner Tony Grappone, CPA, walk through the process of raising tax credit equity for renewable energy projects, from making a good first impression on investors and negotiating term sheets to managing the closing process and managing the assets after closing.

With the new markets tax credit (NMTC) made permanent in the One Big Beautiful Bill Act (OBBBA) and a record-breaking $10 billion allocation round nearing, these are heady times in the NMTC world. But administrative actions and the threat of a government shutdown have also led to trepidation. In this episode of the Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Brad Elphick, CPA, discuss the latest updates regarding the NMTC, the potential impacts of a shutdown and future legislation, as well as the recent successes of the Novogradac NMTC Working Group.

The One Big Beautiful Bill Act (OBBBA), signed into law July 4, lowered the tax-exempt bond financed- by test for low-income housing tax credit (LIHTC) properties from 50% to 25%. In this episode of the Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac Housing Policy Consultant Mark Shelburne discuss the ways in which state housing agencies are implementing the new test. They discuss how the 25% financed-by test gives states the ability to finance more affordable housing with the same amount of bond cap. The pair then explain how states can begin implementing the new test. States can implement the test on its effective date in one as of Jan. 1, 2026; wait until 2027 and spend 2026 deciding how they will implement it; or lean into the new rule and start taking actions in 2025.

The One Big Beautiful Bill Act (OBBBA), signed into law July 4, lowered the tax-exempt bond financed- test for low-income housing tax credit properties from 50% to 25%, giving states the ability to potentially double the amount of bond-financed tax credit transactions that they can finance with the same amount of bond cap. In this episode of the Tax Credit Tuesday podcast, Michael Novogradac, CPA, Novogradac partner Charlie Rhuda, CPA, and Novogradac principal Julie Lawrence, CPA, discuss Internal Revenue Code Section 42 and Section 142(d) key compliance areas, including minimum set-aside tests, rent limit rules, handling over-income tenants and compliance monitoring. The episode provides valuable insights for developers and investors on navigating the complexities of combining LIHTC with private-activity bonds.

The One Big Beautiful Bill Act (OBBBA), signed into law July 4, made the opportunity zone (OZ) incentive a permanent part of the Internal Revenue Code. In this episode of the Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Jason Watkins, CPA, review the changes to OZs instituted by the OBBBA. They explore the Opportunity Zones (OZ) 2.0 Mapping Tool, which Novogradac launched Aug. 19. Novogradac and Watkins also discuss the emphasis on investing in rural areas for the next set of OZs, nominations which begin July 1, 2026. Finally, the pair the new reporting requirements for OZs and the upcoming "dead zone" for investments, which is projected by some to occur next year.