IRS/Tax Issues

The Internal Revenue Service (IRS) today released its updated audit technique guide (ATG) for the Low-Income Housing Tax Credit (LIHTC) program. This guide was prepared to assist IRS examiners in auditing owners of LIHTC properties.

The Internal Revenue Service (IRS) published that $2.59 million of unused LIHTCs carryovers for calendar year 2014 will be allocated to 35 qualified states and Puerto Rico.

IRS recently released Revenue Procedure 2014-49 to make revisions to Revenue Procedure 2007-54 which established temporary relief from certain requirements of Section 42 of the Internal Revenue Code for owners and agencies located in areas affected by major disasters.

The Internal Revenue Service (IRS) recently released Notice 2014-46, further clarifying Notices 2013-29 and 2013-60, regarding (i) how to satisfy the Physical Work Test and (ii) the effect of various types of transfers with respect to a facility after construction has begun. The Notice also modifies the application of the five percent Safe Harbor. Notice 2014-46 clarifies that a fully- or partially-developed facility may be transferred without losing its qualification under the Physical Work Test or the Safe Harbor for purposes of the PTC or the ITC.

The Government Accountability Office (GAO) recently released a new report that addresses the complex financial structures of New Markets Tax Credit (NMTC) transactions. The report questions whether combining multiple federal, state, or local subsidies is unnecessarily duplicative and whether the complexity of such structures are masking higher rates of return for NMTC investors.

The Internal Revenue Service (IRS) recently released Notice 2014-39 clarifying questions related to Section 1603 renewable energy cash grant recipients. The Notice provides that the Section 1603 Payment resulting from sequestration during the affected time period does not affect the amount of the Section 1603 Award or the basis of the specified energy property taken into account for purposes of determining the award.

All conference materials, PowerPoint presentations, relevant articles, reports, memos, etc. from the 2014 Spring Developers Forum are available below under the relevant session titles.

All conference materials, PowerPoint presentations, relevant articles, reports, memos, etc. from the 2014 Spring Developers Forum are available below under the relevant session titles.

On Wednesday, January 28, President Obama presented his 2014 State of the Union address to a joint session of Congress, offering several domestic policy proposals focused on expanding opportunity. Noticeably absent from his remarks was how access to safe, decent affordable housing is cornerstone to the expansion of economic and social opportunity…

On December 31 the Internal Revenue Service (IRS) released safe harbor guidance (Revenue Procedure 2014-12) for structuring federal historic tax credits transactions, which is expected to attract more investment activity.

All conference materials, PowerPoint presentations, relevant articles, reports, memos, etc. from the 2014 NH&RA Annual Meeting are available below under the relevant session titles. Click below to learn more about the topics that were covered at the meeting! Conference Recordings of each session will be available in NH&RA’s Online Store following the conference.

On Wednesday February 26, House Ways & Means Committee Chairman Dave Camp (R-Mich.) released his long-awaited draft Tax Reform Act of 2014. The draft legislation contains many significant provisions relating to the Low-Income Housing Tax Credit and would also repeal the Historic Rehabilitation Tax Credit and various renewable energy credits.