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POSTED BY NTCIC ON 11TH JULY 2011 0CREATING AMERICAN PROSPERITY THROUGH PRESERVATION ACT (CAPP ACT) INTRODUCED IN THE HOUSE OF REPRESENTATIVES – MODERNIZES FEDERAL HISTORIC TAX CREDIT AND CREATES NATIONAL ECONOMIC BOOST
Washington, D.C. — Congressman Aaron Shock (R-IL) joined with Congressman Earl Blumenauer (D-OR) to introduce legislation on July 8th, the “Creating American Prosperity through Preservation Act” (CAPP), which modernizes and creates a more powerful federal Historic Tax Credit. For thirty years, the federal HTC has helped revitalize cities, towns and rural communities by turning dilapidated and forgotten buildings into useful commercial and community assets.  The CAPP Act provides the tools to make the HTC more accessible to strategic projects that create quality jobs, drive economic investment, revitalize “Main Street” districts, target difficult to develop areas and promote energy-efficiency.

According to data from the newly released Second Annual Report on the Economic Impact of the Federal Historic Tax Credit, conducted by researchers at Rutgers University’s Center for Urban Policy Research, historic rehabilitation created 145,000 local, high-paying jobs in 2009 and 2010 alone. Over the last thirty years the HTC has created over 2 million jobs and leveraged over $90 billion in private investment, while rehabilitating over 37,000 historic buildings.  The Report reaffirms the economic activity leveraged by the federal HTC program returns more tax revenue to the U.S. Treasury than the cost of implementing the program.  More important the study highlights the need for the CAPP Act to modernize the credit so it can adapt to the ever-changing economy.   John Leith-Tetrault, Chairman of the HTCC, said, “the provisions in the CAPP will bring the historic tax credit into the 21st century allowing more buildings to be rehabilitated, creating more local jobs, and driving more investment into rural, and Main Street towns across America.  Based on Rutgers’ research we know that historic rehab, compared to other stimulus measures, is a cost effective way to generate jobs.”

The CAPP Act (H.R. 2479) encompasses five important changes to the current federal HTC program:

Rebuilds, restores and revitalizes “Main Street” by driving economic investment and job creation to rural and smaller “Main Street” communities.  The bill increases the current 20 percent credit to 30 percent for small projects, those that have $5 million or less in qualified rehabilitation expenses, removing a current disincentive to developing small-scale-buildings, which often provide commercial space for small businesses and housing.
Promotes energy-efficiency and cost-savings by providing an additional 2 percent credit to both the 10 and 20 percent credit if the building increases it energy efficiency by 30 percent or more.  The CAPP’s proposed changes will effectively reduce fossil fuel consumption and lower each buildings’ heating and cooling costs.
Enhances the impact of Historic Tax Credit in low-income and difficult-to-develop-areas by removing a provision in the Internal Revenue Code that inhibits the ability of nonprofit organizations from undertaking the most difficult projects in communities in greatest need. The CAPP’s provisions would facilitate the reuse of older buildings by nonprofits for employment and community health centers, schools and affordable housing.
Creates a more powerful historic tax credit by eliminating the federal taxation of the proceeds of state credits transferred through partnerships and sold as state tax certificates.  Economic studies prove that combining the federal and state historic tax credits create a powerful economic tool, however, the current federal taxation of state credits severely diminishes the full investment potential of state historic tax credits.  This can make the difference between a project’s success or failure.
Creates new opportunities for the rehabilitation of older buildings removing barriers to the use of the 10% tax credit. The CAPP Act will remove the arbitrary date of 1936, which will allow a large number of structures that are currently ineligible to be eligible.  Greatly expanding the credit’s usefulness and the potential for comprehensive economic development by rehabilitating post-World War II buildings.
Click here to view the full text the CAPP Act (H.R. 2479).

About the Historic Tax Credit Coalition

HTCC is a public policy advocacy organization whose members represent historic tax credit industry participants including investors, syndicators, developers, preservation consultants, tax attorneys and accountants. To learn more, please visit http://historiccredit.wordpress.com.

The Second Annual Report on the Economic Impact of the Federal Historic Tax Credit can be accessed at http://ntcicfunds.com/rutgers-report

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The Creating American Prosperity through
Preservation Act will result in a more powerful
historic tax credit by targeting it toward the rebuilding of America’s “Main Streets,” strengthening state historic tax credits and encouraging
every rehabilitation to become a model of energy efficiency. All of these changes will create
good paying jobs through the reuse of vacant
older buildings.
Rep. Aaron Schock, R-Ill.

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Duane Morris Forms Hurricane Sandy Sub-Practice Group

In anticipation of the Federal programs which will be enacted to assist in the redevelopment of areas affecting by Hurricane Sandy, Duane Morris has formed the Hurricane Sandy Housing and Community Development Sub-Practice Group.  In the aftermath of Hurricane Katrina Congress passed legislation which provided Federal low-income housing tax credit allocation, Federal New Markets Tax Credit Authority and special tax subsidized bond financing designated for effected areas.  The Hurricane Sandy Housing and Community Development Sub-Practice Group is an interdisciplinary group including attorneys with the following specialties: Art Momjian, Federal tax credit programs, Harvey Johnson (NJ) and Jon Popin (NY), affordable housing; Bob Archie, Nat Abramowitz, and Bruce Jurist tax exempt bond finance; Marty Monaco (NJ), tax-exempt entities; and Chester Lee (NY) and Chris Winter, real estate and commercial financing.  Members of the Hurricane Sandy Housing and Community Development Sub-Practice Group will provide a unique value to clients as a result of their experience with the Katrina programs, and their extensive knowledge and experience with state and local affordable housing and community development programs in New Jersey and New York.  Members of the group can assist clients combine state and local programs with the Federal Hurricane Sandy relief legislation.

http://www.cdfifund.gov/what_we_do/programs_id.asp?programID=5








Announcements

Important Information for 2012 NMTC Program Applicants Affected by Hurricane Sandy

Important - Our Contact Information Has Changed!

IRS Issues Final Regulations on New Markets Tax Credit

CDFI Fund Releases Application Demand for 2012 Round of NMTC Program
Overview

The New Markets Tax Credit Program (NMTC Program) was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities. The NMTC Program attracts investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their Federal income tax return in exchange for making equity investments in specialized financial institutions called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of seven years (five percent for each of the first three years, and six percent for each of the remaining four years). The investment in the CDE cannot be redeemed before the end of the seven-year period.

Since the NMTC Program’s inception, the CDFI Fund has made 664 awards allocating a total of $33 billion in tax credit authority to CDEs through a competitive application process. This $33 billion includes $3 billion in Recovery Act Awards and $1 billion of special allocation authority to be used for the recovery and redevelopment of the Gulf Opportunity Zone.

Eligibility

An organization wishing to receive awards under the NMTC Program must be certified as a CDE by the Fund.

To qualify as a CDE, an organization must:

be a domestic corporation or partnership at the time of the certification application;
demonstrate a primary a mission of serving, or providing investment capital for, low-income communities or low-income persons; and
maintain accountability to residents of low-income communities through representation on a governing board of or advisory board to the entity.
For more detailed information on the CDE certification process and CDE certification Application materials, please visit the CDE Certification page.

Timeline

Release of NOAA and Application materials:
July 13, 2012

Pre-Recorded Application Webinar Posted to CDFI Fund Website:
July 18, 2012

Conference Calls to Answer Questions on the 2012 Application:
July 24, 2012 4 p.m. ET
July 26, 2012 2 p.m. ET

Submission of subsidiary CDE Certification Applications (for QEI Issuance):
August 1, 2012

CDE Certification Applications must be postmarked on or before:
August 3, 2012

Deadline for any questions to the CDFI Fund about the Application:
September 10, 2012 5 p.m. ET

Online Submission of Allocation Application:
September 12, 2012 5 p.m. ET

Online Submission of Allocation Application Attachments:
September 14, 2012 11:59 p.m. ET

Date by which prior-year Allocatees must issue the requisite percentage of QEIs:
October 31, 2012


Application Materials       

2012 NOAA
2012 NMTC Program - Application
2012 NMTC Online Application Instructions
2012 NMTC Program - Application Q&A (Updated: 08/15/2012)
2012 NMTC Program - Application Webinar
2012 NMTC Program - Application Webinar Materials

Low-Income Communities and Targeted Populations       

NMTC Census Data Transition FAQs (Updated: October 17, 2012)
Updated NMTC Eligibility Data (2006-2010 American Community Survey) (Updated: October 17, 2012)
NMTC Q&A: Low-Income Communities and Targeted Populations
Statewide Median Family Income: 2006-2010 American Community Survey 5-Year Estimates

2000 Census Low-Income Community Eligibility Data       

CDFI Fund Mapping System (CIMS)
Information on Qualifying Census Tracts in Non-Metropolitan Counties (.pdf)
List of Qualifying Census Tracts in Non-Metropolitan Counties (.xls)
List of Qualifying NMTC Census Tracts Within High Migration Rural Counties
List of Qualifying Counties and Eligible Low-Income Communities in the Go Zone
Map of Gulf Opportunity Zones
Katrina Severely Damaged Census Tracts

Find CDEs with an NMTC Allocation       

QEI Issuance Report (December 2012)
Searchable Award Database

NMTC Compliance Resources       

Certification of Material Events Form
Frequently Asked Questions on Material Events
NMTC Compliance & Monitoring Frequently Asked Questions (September 2011)
New Markets Tax Credit Allocation Agreement Template (2011) (Updated March 30, 2012)

Supplemental Resources       

How to Request a Legal Review

IRS Materials and Program Regulations       

IRS Help Desk For General NMTC Questions
IRS - Final Regulations for Targeted Populations
IRS - Changes to the New Markets Tax Credit to Facilitate Investment in Small Businesses
IRS New Markets Tax Credit Audit Technique Guide
IRS -Rev. Rul. 2010-17: Section 45D- New Markets Tax Credit
IRS- Rev. Rul. 2010-16: Section 469-Passive Activity Losses and Credits Limited
IRS - Proposed Amendments to NMTC Program Regulations (Aug 200
IRS - NMTC Program Income Tax Regulations
IRS - Guidance Regarding use of Borrowed Funds to Make Qualified Equity Investments in CDEs
IRS - Form 8874 (2003)
New Markets Tax Credit Statute

Past Awards       

2011 NMTC Program Award Booklet
2011 NMTC Program Award List
2011 NMTC Program Highlights
2011 NMTC Program Allocatee States Served
2011 NMTC Program Allocatee Profiles

Links to Other Relevant CDFI Fund Webpages       

CDE Certification
Compliance, Monitoring, and Evaluation
Research Reports and Impact Data

Program Materials Archive

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      Last updated/reviewed: 12/3/2012

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