Tax Credit Tuesday Podcasts Novogradac & Company LLP

Many developers are familiar with the challenges when using historic tax credits (HTCs) to preserve America's history, including issues such as climbing interest rates, rising insurance rates and increasing costs of construction and labor. In this week's episode of the Novogradac Tax Credit Tuesday podcast, Michael Novogradac, CPA , and John DeJovine, CPA , discuss gap financing solutions for developers involved in historic preservation. First, the conversation covers the use of bridge loans, tax increment financing (TIF), payment in lieu of taxes (PILOT), property assessed clean energy (PACE) funds and other state, local and municipal sources of financing. Later, Novogradac and DeJovine discuss how the HTC pairs with other affordable rental housing and financing community development using such incentives as the low-income housing tax credit (LIHTC), new markets tax credit (NMTC), opportunity zones (OZ) equity, and renewable energy incentives such as the production tax credit (PTC) and investment tax credit (ITC).

The U.S. Department of Housing and Urban Development (HUD) released 2024 rent and income limits earlier this month'limits that determine renter eligibility for HUD-assisted programs and for properties financed by low-income housing tax credit (LIHTCs). The limits also determine the maximum rents that owners of LIHTC properties can charge tenants. In this week's podcast, Michael Novogradac, CPA, and Novogradac partner Thomas Stagg, CPA, discuss the rent and income limits. They look at key takeaways, how the new 10% ceiling affected limits, what geographic areas saw income limit growth that was below the national average of 6% or decreased and how the income limits affect (or don't affect) HERA special properties. They also look to what to expect in 2025 and key dates for data release that will affect those 2025 limits.

In the latest installment in Tax Credit Tuesday's recurring Renewable Energy Tax Credit Finance series, Michael Novogradac, CPA, is joined by Tony Grappone, CPA to discuss final regulations concerning the elective pay option for certain renewable energy investment tax credits. The Internal Revenue Service published the final regulations in the March 11 Federal Register to adopt and codify temporary regulations issued in June 2023, with slight modifications. Learn about the elective pay final regulations, how they differ from the temporary regulations, potential penalties for excessive payments and the impact of other financing on elective pay.

Affordable housing and community development finance can be dense, layered, complex topics to understand. In the latest episode of the Novogradac Tax Credit Tuesday podcast, Michael Novogradac, CPA , and Wayne Michael, CPA , Novogradac's senior director of education, discuss Novogradac's e-learning platform,' Novoco Training , which seeks to bridge the gaps between novice and knowledgeable when it comes to developing affordable rental housing and financing community development using such incentives as the low-income housing tax credit (LIHTC), historic tax credit (HTC), new markets tax credit (NMTC), renewable energy production tax credit (PTC) and investment tax credit (ITC) and more. They discuss what distinguishes the e-learning platform from other points of contact and information with Novogradac, the different types of content and their formats available and ways users can access that content.

Many in the affordable rental housing development community may think they know what is meant by the term "mixed income," but, in fact, the phrase has many different interpretations depending on person, jurisdiction, property type, ownership structure and more. In the latest installment in the Tax Credit Tuesday podcast's So You Want to Be a LIHTC Developer series, Michael Novogradac, CPA , and Mark Shelburne , Novogradac housing policy consultant, discuss six different ways the term can be interpreted. Later, the pair discusses three potential impacts these terms can have on investor interest, additional debt burden and property compliance.

In this episode of the Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Brad Elphick, CPA, discuss four hot topics in the new markets tax credit (NMTC) community. First, they discuss upcoming qualified equity investment issuance and reporting deadlines for prior allocatees. Second, they talk about recommendations to combine the next two allocation rounds into a single $10 billion allocation round. Third, they discuss what's new and notable with the 2024 NMTC application that was released for public comment. They conclude with important updates in the NMTC Compliance FAQs document.