Historic State Tax Credits

Numerous states have designed Historic Preservation Tax Credit Programs to provide incentive to preserve historic structures. Historic state tax credits are distributed by either allocation, through a limited partnership, or by certificate. The credits are claimed in the year the rehabilitation is certified as completed. Although the credit is typically earned in the first year, few states distribute the credit over a longer period, such as 5 years.

Contact Tim Perkins ur Tax Credit Specialist At #cell 248-760-9406 !!!

Low Income Housing Tax Credits

The Low Income Housing Tax Credit (LIHTC) is a tax credit under the Tax Reform Act of 1986 (TRA86) that gives incentives for the utilization of private equity in the development of affordable housing aimed at low-income Americans. The credits are also commonly called Section 42 credits in reference to the applicable section of the Internal Revenue Code. The tax credits are more attractive than tax deductions as they provide a dollar-for-dollar reduction in a taxpayer's federal income tax, whereas a tax deduction only provides a reduction in taxable income. The LIHTC program allows companies to invest in low-income housing, while receiving 10 years of tax credits. This important program works with state housing finance agencies to administer the program on a state level. Housing credit units are privately owned by developers and are run at a profit. The LIHTC program results in the construction of over 125,000 units per year. Despite the resounding success of the program, the demand for affordable units is estimated to be 5,000,000.

Contact Tim Perkins Our Tax Credit Specialist At Cell # 760-9406!!!

New Markets Tax Credit

As part of the Community Renewal Tax Relief Act of 2000, Congress created the New Markets Tax Credit ("NMTC") program. This program provides investment from the private sector into low-income communities. 

A Community Development Fund which has been awarded NMTC's will invest in Qualified Low-Income Community Investments which can be from loans on commercial property or to businesses. These investments, along with their normal economic incentives, will generate a tax credit. The credit will be paid out over 7 years for a total of 39% of the qualified investments the fund receives. The investors in the fund will receive credits of 5% of investment for the first 3 years, followed by 6% of investment for year 4 years.

Contact Tim Perkins Our Tax Credit Specialist At Cell # 248-760-9406!!! 

Brownfield State Tax Credits

Brownfield State Tax Credits are offered for the redevelopment of contaminated industrial and commercial properties. With this program, property owners clean-up, restore and bring to life properties that would  otherwise remain blighted and functionally obsolete. In order to motivate owners to invest in contaminated properties, a number of states offer tax credits. Many property owners do not have the state tax liability to utilize the full amount of Brownfield tax credits by themselves. We can assist property owners by monetizing the tax credits upon completion or by pre-funding the tax credits through a loan.

Contact Tim Perkins Our Tax Credit Specialist At Cell # 248-760-9406!!!

Rehabilitation Tax Credits

The rehabilitation Tax Credit, which is contained in Internal Revenue Code Section 47, was created to provide an incentive for community revitalization of historic properties. The current incentives include a 20% tax credit for the rehabilitation of historic structures and a 10% tax credit for non-historic, non-residential buildings built before 1936. The credit is generated in one year, but the property must stay in its rehabilitated form for a period of 5 years. Qualified projects include residential, commercial and industrial projects, but exclude private residence.

Many investors view the Rehabilitation Tax Credit as very attractive because of its immediate impact. As a one year credit, the return on investment is immediate, not spread over a longer period of time. Additionally, Rehabilitation Tax Credits can be combined with LIHTC's to further assist in the financing of a project and creating an investment vehicle with a very attractive rate of return.

Contact Tim Perkins Our Tax Credit Specialist At Cell # 248-760-9406 !!!

Film Production Tax Credits

Many states have initiated film production tax credit programs in order to attract film producion and the economic benefits that result from filming in that state. Film Production Tax Credits are a very simple and straight forward transaction. The credits are in the form of a certificate which is provided by the state after the costs of the production are certified.

Contact Alex James Our Film Production Tax Credits Specialist At # 248-914-5013!!!