Tax Credit Tuesday Podcasts Novogradac & Company LLP

Under the Inflation Reduction Act of 2022, certain energy facilities can qualify for a 10% bonus tax credit for solar, onshore wind and battery projects that have a minimum amount of domestic content. The IRS in May released new guidance making it easier to determine whether a project qualifies for the bonus credit. In this episode of Tax Credit Tuesday, guest host Brad Elphick, CPA, and Tony Grappone, CPA, dive into the recent domestic content bonus credit guidance for renewable energy projects. They discuss implications for developers, investors and lenders, as well as how Novogradac can provide agreed upon procedures services to help project partners assess whether there are any issues in the way of a facility meeting the domestic content criteria.

With five months until the general election, possible outcomes are varied'and the stakes are high for community development stakeholders. In this week's Tax Credit Tuesday, Michael J. Novogradac, CPA, and Peter Lawrence, Novogradac's director of public policy and government relations, discuss why this election is so important and the effects of different possible outcomes on community development tax credits. They begin by talking about the expiring provisions and why tax legislation is almost certainly on the agenda for the next Congress, then they look at the state of the races for president, the Senate and House of Representatives. After that, they examine each scenario and what each might mean for community development tax incentives.

Year 7 marks the end of the compliance period for a new markets tax credit (NMTC) transaction, marking seven years since an investor made its qualified equity investment into a community development entity (CDE). In this week's episode of Tax Credit Tuesday, Michael Novogradac, CPA, and Greg Clements, CPA, discuss the most-common type of Year 7 NMTC exit, the put-call structure. After defining the structure, Novogradac and Clements outline the roles and viewpoints of the investors, qualified active low-income community businesses (QALICBs) and CDEs during a Year 7 exit. Later, Clements gives his perspective on the value of planning, timing and communication between the parties.

Property compliance is multilayered for owners and managers of low-income housing credit (LIHTC) properties, with complexity increasing for mixed-income properties, which are properties whose renters make up to varying levels of the area median income, often including market-rate apartments. In this episode of Tax Credit Tuesday, Michael Novogradac, CPA , and Stephanie Naquin, HCCP, COS , delve into compliance for mixed-income properties that use the LIHTC. They discuss the definitions of 100% affordable housing and mixed-income housing, recertifications, the next-available-unit rule and more.

The Inflation Reduction Act of 2022 reduced the base rate of the then-26% renewable energy investment tax credit to 6% for renewable energy projects. Few projects are financially viable with just the 6% credit, but projects can qualify for a 30% credit if they satisfy two criteria: prevailing wage and apprenticeship (PWA) requirements. In the latest installment in Tax Credit Tuesday's recurring Renewable Energy Tax Credit Finance series, Michael Novogradac, CPA, and Tony Grappone, CPA, discuss the credits and technologies to which PWA criteria apply, how to meet PWA criteria and how to provide investors comfort with PWA compliance.

Eligible basis is a foundational factor to determine the maximum amount of low-income housing tax credits (LIHTCs) generated by an affordable housing property. In this week's podcast, Michael Novogradac, CPA, and Mark Shelburne, a Novogradac housing policy consultant, discuss the fundamentals of eligible basis and the implications for properties ahead of a special six-part online course offered by Novogradac. They examine the purpose of that course series, then look at the role eligible basis plays in determining the tax credit allocation amount. After that, they look at the challenges in determining what parts of an affordable housing development are depreciable and what constitutes eligible basis, including examples of challenges faced. They wrap up by talking about opportunities to learn more about the nuances of eligible basis.