Novogradac & Company Llp

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partners Brad Elphick, CPA, and Rebecca Darling, CPA, discuss highlights from the calendar-year 2020 new markets tax credit (NMTC) allocation round. They also discuss what 2020 NMTC allocation awardees and those who did not receive an award should be doing to prepare for the 2021 allocation round. They share tips for businesses and nonprofits for accessing NMTC financing and close with an analysis of the implications of the 2020 awards round for the 2021 NMTC application round.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Nat Eng, CPA, discuss opportunities for individual investors in solar developments. They discuss reasons for an increased interest in individual solar investment, limitations for individual investors in solar, as well as case studies of individual solar investor types. They close with suggested next steps for individuals who want to learn more about investing in solar.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, Novogradac partner Jim Kroger, CPA, and Novogradac principal Melissa Chung, CPA, discuss the 50% test for affordable rental housing properties financed by private activity bond (PABs) and 4% low-income housing tax credits (LIHTCs). They discuss how the 50% test works, potential complications, what developers can do to avoid failing the test, when to check in and options if failure occurs. They also discuss federal efforts to reduce the 50% test and the implications of that change.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac compliance experts Thomas Stagg, CPA, and Stephanie Naquin discuss how LIHTC property owners and managers can prepare for Oct. 1, when temporary compliance relief expires. They outline how to plan for four areas of expiring compliance relief: annual income recertifications, physical inspections and tenant file reviews, reopening of shared spaces and common areas; and the correction relief period.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner John Sciarretti, CPA, discuss highlights from the Novogradac Opportunity Zones Investment Report: Data Through June 30, 2021. In addition to top-level fundraising amounts, they discuss the types of businesses that are receiving opportunity zones (OZ) investment, geographic placement of OZ investments, average fundraising levels of qualified opportunity funds (QOFs) and upcoming OZ deadlines that could affect QOF fundraising. They also discuss corrections and correcting amendments to final OZ regulations.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, Novogradac partner Nicolo Pinoli, CPA, and Bob Ibanez, a Novogradac senior public policy manager discuss the upcoming calendar-year 2021 new markets tax credit (NMTC) application round, including the timing of the 2020 awards and the opening of the next round. They also discuss community development entity (CDE) eligibility issues, the importance of lining up leverage debt sources early, common issues with the investment pipeline and best practices for communicating a track record, including the role of disadvantaged businesses and communities.

In the 700th weekly Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Dirk Wallace, CPA, discuss the proposed middle-income housing tax credit (MIHTC), including the incentive's purpose, how it compares to the low-income tax credit in size and mechanics, where it would work best and what developers should be considering now to be prepared if the proposal becomes law. They also discuss what stakeholders are saying about the MIHTC, who the likely investors would be and how listeners can participate in helping shape the MIHTC, both in terms of statutory and regulatory moves.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Dirk Wallace, CPA, discuss the proposed neighborhood homes tax credit (NHTC), including what needs the incentive would meet, where it would likely be used and how it would be allocated. They also discuss recapture regulations, how states might adjust regulations to meet their needs and who would be the likely participants in the incentive. They conclude with a discussion of how renovations of homes could be covered by the credit, including financial sources to cover gaps, and what the Neighborhood Homes Tax Credit Working Group will address.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac principal Erin Neff, CPA, discuss two common questions asked by Novogradac clients who are thinking about applying for new markets tax credit allocation (NMTC) authority: 1. Are there particular types of borrowers that are underserved by community development entities? 2. How can a NMTC applicant can improve the chances of getting a larger tax credit award? Michael and Erin discuss the answer that connects these two questions, namely using a portion of one's allocation to make small-dollar loans, which are principally done through loan pools. Learn about various tax and compliance considerations related to loan pools, as well as best practices.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, discuss the state of various community development tax incentives with Peter Lawrence, Novogradac's director of public policy and government relations. Lawrence shares his work history, then examines the prospects for infrastructure legislation, as well as where the corporate tax rate and capital gains tax rate might land. Then they look at the chances of a change in the 50% private activity bond test, as well as the chance for passage of bills that include permanency for the new markets tax credit, expansion and extension of renewable energy tax incentives and the extension or phasing out of the opportunity zones incentive. They conclude with a discussion of how advocates can encourage expansion of community development incentives.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, Novogradac partner Jim Kroger, CPA, and Novogradac's Melissa Chung, CPA, discuss the increasing competition for private activity bonds (PABs) for affordable housing, which pair with 4% low-income housing tax credits to provide equity for properties. They discuss why and when the increase in use of PABs started, factors that have dramatically increased competition in California, approaches taken by states in light of the increased demand, what developers should be doing to improve their ability to compete, Novogradac services to assist developers and tips to be more effective.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Brent Parker, CPA, discuss what qualified opportunity fund managers and investors need to know about 2021 opportunity zones "invest-by" deadlines and measurement dates, COVID-19 relief and more.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, is joined by Mark Shelburne, a housing policy consultant at Novogradac, to discuss trends and insights into state low-income housing tax credit (LIHTC) qualified allocation plans (QAPs). They discuss the requirements for QAPs, how QAPs are adopted and how developers should view the documents. They also address the role of QAPs in properties financed with private-activity bonds and 4% LIHTCs, as well as what developers should know about influencing the next QAP for their state.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, is joined by his partner Michael Kressig, CPA, to explore the topic of state tax credits, which are often a critical part of the capital stack that can make affordable housing, community development and historic preservation developments financially feasible. They discuss the structural features associated with state tax credits, how tax credits vary across state programs and the critical implications those differences have on the upfront value of the tax credits and structuring options.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, is joined by his partner Jeff Nishita to discuss how maximize low-income housing tax credit (LIHTC) equity. They discuss the potential to maximize LIHTC equity, how to increase and accelerate tax credits, how to increase and accelerate tax losses, how to identify investor goals and consider how a development can help investors achieve those goals. They also discuss the importance of correctly timing the arrival of equity.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, is joined by his partner Blair Kincer and Bob Ibanez, a senior manager in Novogradac's public policy group, to discuss community outcomes and their significance in determining new markets tax credit (NMTC) awards. They examine how community outcomes have historically been viewed in the NMTC world and look at what might be coming. They also discuss how to measure community outcomes, the importance of documenting the impact of previous NMTC investments and how being able to demonstrate social impact is growing in importance to attract investors in all community development incentives.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, is joined by his partner Rich Larsen, CPA, to discuss the U.S. Department of Housing and Urban Development's (HUD's) recent guidance on Faircloth-to-Rental Assistance Demonstration (RAD) conversions. They examine how public housing authorities (PHAs) got so far below their public housing cap, what the new guidance allows, steps that PHAs and developers should consider, how a Faircloth-to-RAD conversion works and which PHAs have the most capacity.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, is joined by his partner Tom Boccia, CPA, to discuss the historic tax credit (HTC) equity market, including the impact of shifting from a one- to a five-year credit, how the COVID-19 pandemic affected pricing and the importance of geography and asset classes. They also discuss the repercussions of the drafting error on provisions concerning qualified improvement property in the 2017 tax reform legislation and the subsequent technical correction, then examine the Historic Tax Credit Growth and Opportunity (HTC-GO) Act, looking at what provisions would have the biggest impact.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, is joined by his partners Brad Elphick, CPA, and Rebecca Darling, CPA, to discuss steps that community development entities (CDEs) and qualified businesses should be taking now to prepare for the next new markets tax credit (NMTC) application round. They discuss the timing of the next NMTC awards and application round, where CDEs should start preparing, keys to building a successful application, how Novogradac can help CDEs with their application, when businesses should begin discussing NMTC financing with CDEs and how businesses can qualify for the financing.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, is joined by Novogradac partner Tom Boman, CPA, and Novogradac principal Reza Karim, CPA, to discuss best practices for renewable energy property owners, investors, developers and operators to maximize the benefits of state and local tax incentives and exclusions. They'll discuss various considerations, when project sponsors should begin considering state and local incentives, the magnitude of potential savings, tax and consulting services for owners and common mistakes to avoid.