IRS/Tax Issues

The IRS has issued a notice that addresses the new Federal refundable tax credit subsidy option for certain qualified tax credit bonds and Build America Bonds under the Hiring Incentives to Restore Employment Act (the “HIRE Act”).

On March 24 the U.S. House of Representatives passed a $16.8 billion package of tax incentives (HR 4849) for state and local governments and small businesses, the second measure in the Democrats’ “jobs agenda” to pass the chamber this month. The measure passed on a largely partisan 246-178 vote. Key provisions include:…

The Law Firm Nixon Peabody LLP recently published a helpful update entitled “What does codification of the “Economic Substance Doctrine” mean for tax credit transactions?” After years of anticipation, the “economic substance test” is now part of the Internal Revenue Code.

National Housing & Rehabilitation Association (NH&RA) is pleased to announce that it has extended its discounted early registration rate deadline for the 2010 Spring Policy Forum, May 20-21 at the Liaison Hotel in Washington, DC. Simply register online by no later than Friday, April 30 to receive $100 off conference fees.

Major decisions are being made in Washington that affect the future of tax credit development. But these decisions aren’t made in a vacuum – they are made after consultation with industry experts, constituents and consumers. You should be part of the conversation! Join NH&RA in Washington, DC for its 2010 Spring Policy Forum.

The National Council of Affordable Housing Market Analysts convened its 2010 Spring Underwriting Forum on April 7-8 at the Intercontinental Hotel in New Orleans. NCAHMA is pleased to announce that the PowerPoint presentations from the event are now available…

House Ways and Means Committee Chairman Sander M. Levin (D-MI), recently introduced draft legislation that would make tax-exempt bond-financed properties eligible for the Section 1602 low-income housing tax credit (LIHTC) cash grant exchange program, and allow the new markets tax credit (NMTC) to be used to offset the alternative minimum tax (AMT).

NH&RA has made available the conference PowerPoint presentations from its 2010 Annual Meeting & NMTC Symposium, held March 10-13 in Miami Beach, Fla.

The U.S. Treasury Department recently updated its program guidance for the Section 1603 renewable energy tax credit cash grant exchange program.

The U.S. Government Accountability Office (GAO) released a new report in late January on the New Markets Tax Credit Program entitled, “Credit Helps Fund a Variety of Projects in Low-Income Communities, but Could Be Simplified.” In the report, GAO describes where and how community development entities (CDE) are using NMTCs to finance development in low-income communities and describes options for simplifying the NMTC program.

Senators Max Baucus (D-Mont.) and Charles Grassley (R-Neb.), Chairman and Ranking Member of the Senate Finance Committee have released a draft Jobs Bill. The $85 billion “˜”˜Hiring Incentives to Restore Employment Act” has not been assigned a bill number yet.

In a recent alert, the accounting firm Novogradac & Company has summarized two important IRS Private Letter Rulings impacting the New Markets Tax Credit Ruling.