Thank you again for your interest and participation in our recent webinar “Tools of the Trade: Tax Credits 101.” We received some great questions at the end of the session and hope it was overall helpful and informative. Unfortunately, we werenʻt able to get to all of the questions during the session, but weʻve answered the rest below! If you have any additional questions, please donʻt hesitate to reach out to any of our presenters!
Also – to help NTCIC better understand the needs of Main Street communities across the country, we are conducting a brief survey to learn more about the types of projects and amenities you need in your area! Follow the link below and tell us more about how we can help! By completing the survey, you’ll be entered to win a $50 Amazon gift card!
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To watch the full webinar, click below:
Click here to take the Community Survey
Follow Up Q&A
Question:
Are tax credits transferable, entity to entity, should something happen to the original investment group?
Answer:
Typically HTCs are transferrable to an investor to the extent they haven’t yet been claimed. In the event the original developer of a project is unable to finish the building, and another developer takes over the project, they are still able to monetize the HTCs with a 3rd party as long as the building has not been placed into service. However, if the building has been placed in service and is in its compliance period, the credits have already been recognized by the investor and can’t be transferred.
Question:
Where can I go to determine whether our service footprint qualifies as a low-income community?
Answer:
The CDFI Fund has an incredibly helpful interactive mapping tool that can be used to determine if your project is in an eligible census tract. Click here to search for your address.
Question:
Which states have the uncapped funding on state HTCʻs? Are you seeing those states more active with redevelopment? For example, I am familiar with Texas and their boom once the cap on the state level was removed
Answer:
We are typically seeing states that have a state HTC program more active in the historic rehab market, regardless of whether a cap is in place on the state credit. But to the extent it is an uncapped program, we definitely see more HTC projects occur in those states.
Question:
What is the practical limit on the low-end of total project costs?
Answer:
Great question! This depends on if you are monetizing with a 3rd party or utilizing the credits yourselves, but if you monetize the credits with a 3rd party, $2.5MM in qualified rehabilitation expenditures would be on the very low end, $3.5MM in qualified rehabilitation expenditures is more of a practical low end. Also, CDEs like NTCIC are actively creating ways smaller-scale projects are able to take advantage of these incentives. Our Irvin Henderson Main Street Revitalization Fund seeks to support these types of endeavors. Join us for our next webinar where we will be taking a deep dive into how this fund works.