IRS/Tax Issues

On July 21st, the IRS released guidance regarding Internal Revenue Code 50(d)(5). The long-awaited guidance affects market rate transactions involving Historic Tax Credits.

In response to the severe storms and flooding May 26, 2016 – June 24, 2016, a Federal Disaster Declaration has been issued for the following counties: Austin, Bastrop, Brazoria, Brazos, Burleson, Eastland, Fort Bend, Grimes, Hidalgo, Hood, Lee, Liberty, Montgomery, San Jacinto, Stephens, Travis, Tyler, Waller and Washington.

The Government Accountability Office’s second report on LIHTC finds that the agencies that allocate state credits generally follow program requirements. However, approaches to QAP and LIHTC award criteria vary, which opens the door to problems for some agency practices.

Nixon Peabody’s Forrest Milder explains new guidance for wind, geothermal, biomass, solid waste, and hydro projects, including new safe harbor and disaggregation rules.

Annual population estimates determine the amount of Low-Income Housing Tax Credit and tax-exempt private activity bond authority is available for a given year.

The Internal Revenue Service updated the Audit Technique Guide (ATG) for the low-income housing tax credit program. IRS examiners use this guide to audit LIHTC property owners.

A report from the Government Accountability Office suggests that a joint administration between the IRS and the Department of Housing and Urban Development (HUD) would benefit the Low-Income Housing Tax Credit Program.

The Treasury Department and the Internal Revenue Service released performance and quality standards that small wind energy property must meet to qualify for the renewable energy investment tax credit (ITC) or production tax credit (PTC).

Senate Finance Committee approved a tax extender bill that fixes the 9% and 4% credit rate floor for allocations made in 2015 and 2016. These provisions are part of a larger two-year tax extender bill.

The IRS released the 2015 Calendar Year Resident Population Figures. The notice provides population figures to calculate the credit ceiling for low-income housing tax credits (LIHTC)and volume caps for tax-exempt private activity bonds.

Representatives Pat Tiberi (R-OH), Richard Neal (D-MA) and Tom Reed (R-NY) introduced a bill to permanently extend the New Markets Tax Credit (NMTC) program.

Grace Robertson, a longtime analyst with the Internal Revenue Service (IRS) recently announced her retirement from the agency.