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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 the HTC incentive. They discuss how the tax credit is used, what makes a building historic and how to determine whether a rehabilitation will be eligible for HTCs. They then explain details of working with state and federal governmental agencies, how the National Parks Service application system works, who should be on your HTC team and the different transaction structures. They wrap up with a look at services that assist those involved in HTC transactions.

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 the community development entity (CDE). Learn what kind of businesses qualify as a QALICB and what kind of investor/lender entities are good candidates to become CDEs.

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 misconceptions about Form 8823, and more importantly, shares information on how to avoid receiving a Form 8823. For buildings that do receive a Form 8823, this podcast discusses ways to avoid or minimize the loss of future credits or the recapture or previously claimed.

The Emerging Issues Task Force of the Financial Accounting Standards Board is considering changing the generally accepted accounting practices for tax credit investments beyond the low-income housing tax credit (LIHTC), a move that could alter the landscape for investors. Michael Novogradac, CPA, and partner Brad Elphick, CPA, discuss the state of play for potential changes to the proportional amortization method for tax credits other than the LIHTC. They discuss 2014 EITF guidance for the LIHTC and how it affected the affordable housing world, then they look at the current status of the efforts to broaden the use of the proportional amortization method to other tax credits. After that, they discuss the criteria needed to use proportional amortization in LIHTC properties, diving into specifics. They wrap up by discussing possible timelines for guidance and details of a Novogradac GAAP Accounting for Tax Credit Working Group.

The year 2022 could be transformational for public housing authorities (PHAs) in terms of development opportunities and challenges. Michael Novogradac, CPA, and Novogradac partner Rich Larsen, CPA, discuss hot topics for PHAs and strategies to help them address their operating needs, as well as their capital needs. They'll discuss the current status of federal funding for PHAs and why 2022 is a critical window for PHAS, in terms of affordable housing development and preservation. They discuss the Rental Assistance Demonstration (RAD) program, considerations for low-income housing tax credit (LIHTC) properties controlled by PHAs as they reach the end of their initial 15-year compliance period. They conclude with action items PHAs can take this year.

Sen. Joe Manchin, D-West Virginia, announced Sunday that he wouldn't vote for the Build Back Better Act'a crucial blow to the signature legislation of President Joe Biden's administration, a bill that included major green energy and affordable housing provisions. In today's podcast, Michael Novogradac, CPA, is joined by Novogradac director of public policy and government relations Peter Lawrence and Tony Grappone, a partner at Novogradac, to discuss what's next for Congress and the reaction of those in the clean energy world to Manchin's announcement. They discuss how Congress got to this point, what legislative vehicles could involve tax extenders, which community development tax incentives are expiring, how the green energy world is reacting and whether some tax incentives could be enhanced as well as expanded. They also discuss the role of the child tax credit in the BBBA and what provisions might be in future Build Back Better legislation.

Provisions in the Build Back Better Act (BBBA) could have a major impact on the affordable housing world. Michael Novogradac, CPA, is joined by Novogradac director of public policy and government relations Peter Lawrence and Dirk Wallace, CPA, a partner at Novogradac, to discuss the legislation and what developers and other affordable housing stakeholders should be doing to prepare for potential legislative changes. They discuss the provisions concerning the 9% and 4% low-income housing tax credit, the effect on tax credit equity pricing, how states will handle the changes and what developers should be doing to prepare. They also discuss the right of first refusal and qualified contract provisions in the BBBA, a provision to encourage solar power for affordable housing, the introduction of the neighborhood homes tax credit and a large increase in funding for the U.S. Department of Housing and Urban Development.

There's a "new normal" for low-income housing tax credit (LIHTC) compliance monitoring. Certain LIHTC compliance requirements in place today are different from requirements that were in place before the pandemic. Michael Novogradac, CPA, and Novogradac's director of compliance, Stephanie Naquin, discuss how the new compliance regime affects state allocating agencies, property owners and managers, as well as investors and syndicators. They cover tenant file reviews, physical inspections, implementation of a 15-day reasonable notice period and more.

Federal tax legislation in 2017 limited the deductibility of state and local taxes for individuals to $10,000 per year'but subsequent IRS guidance and changes in state laws have provide an opportunity for taxpayers to select an alternative tax regime for savings. In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, Novogradac partner Tom Boman, CPA and Novogradac principal Reza Karim, CPA, discuss the options available to taxpayers. They present an overview of IRS Notice 2020-75, examine approaches by different states, show how those approaches work, explain how taxpayers qualify for options and look at other issues connected to state and local taxes.

Learn about the 2022 qualified census tract (QCT) and difficult development area (DDA) designations and what they mean for low-income housing tax credit developers and properties. In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, Novogradac partner Jim Kroger, CPA, and Novogradac manager Sun-Ae Woo, CPA, discuss observations about the 2022 designations and how the COVID-19 pandemic may have affected those designations. They also discuss action items for developers depending on how the 2022 designation will affect their properties.

Operating expenses for low-income housing tax credit-financed properties faced significant changes due to the COVID-19 pandemic of 2020 and the Novogradac Multifamily Rental Housing Operating Expense Report examines those trends. Michael Novogradac, CPA, discusses the report and its implications with Blair Kincer, MAI, CRE (LEED). They discuss the overall trends in operating expenses for 2020, look at what expense categories were most affected by the pandemic and the look at how listeners can use the report for evaluating portfolios or individual properties.

Opportunity zones (OZ) rules are straightforward and manageable for those who understand them and who work with them regularly, but those who are inexperienced in OZs may be unaware of potential pitfalls from which it can be difficult or nearly impossible to recover. Michael Novogradac, CPA, and Novogradac's managing partner, discusses with Novogradac partner John Sciarretti, CPA, how newcomers can navigate basic OZ issues. They start with an overview of OZ financing, then discuss how to start a qualified opportunity fund and how to avoid compliance pitfalls.

The framework of President Joe Biden's Build Back Better plan, released last week, would provide about $550 billion for green energy investment. In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Tony Grappone, CPA, discuss the implications of that potential legislation for renewable energy developers. They discuss what questions developers are asking about the current framework and what they should be doing now, supply-chain issues that have arisen since the COVID-19 pandemic and possibilities in repowering existing renewable energy properties. They also discuss the role of storage and how developers should view that option.

If enacted as proposed, the Neighborhood Homes Tax Credit would make about $2 billion in annual tax credit authority available nationwide. In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac housing policy consultant Mark Shelburne discuss considerations for state allocating agencies as they prepare for potential enactment of the Neighborhood Homes Tax Credit. They discuss Neighborhood Homes Tax Credit basics, how the incentive compares and contrasts with the low-income housing tax credit, issues for allocating agencies to consider about administration and next steps for allocating agencies, developers and investors.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and George Barlow, CPA, discuss how developers who use federal historic tax credit (HTC) equity in their transactions should address potential legislative changes in the HTC. They look at how this is similar to the period of uncertainty about IRC Section 50(d) income, how effective dates come into play and what to specifically address in negotiations for current or future transactions.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Thomas Stagg, CPA, discuss how a major U.S. Census Bureau announcement will affect income and rent limits for many affordable housing properties in 2023. They discuss how these changes will affect low-income housing tax credit properties and what property owners should do about these changes.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Jeff Nishita, CPA, discuss how developers and investors who are new to the low-income housing tax credit (LIHTC) can use the incentive finance affordable housing for low-income families and individuals. They discuss 4% and 9% LIHTCs, how LIHTC developers are compensated for their work and for the risks they assume, general tips for first-time LIHTC developers and action items for LIHTC developers to get started.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partners Amanda Read, CPA, and Brent Parker, CPA, discuss the 2021 Capital Magnet Fund (CMF) award round, which opened recently and has several approaching deadlines. They discuss the $380 million CMF round, including how it differs from previous rounds. They then talk about who is eligible to participate in the Capital Magnet Fund, next steps for interested applicants and how to make an application more competitive.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Nicolo Pinoli, CPA, discuss key issues that developers and investors of low-income housing tax credit (LIHTC) properties face at Year 15, a critical juncture the marks the end of the 15-year compliance period LIHTC-financed properties. They discuss Year 15 options, considerations and potential hurdles.

In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Tom Boccia, CPA, discuss the historic tax credit equity market, including tax credit equity pricing, the types of transactions that are popular and more. They also highlight a few of the steps that developers can take to enhance the financial feasibility of their property. As part of that segment, they discuss the transition rule for a one-year credit and the HTC-GO Act.