The federal government and many state governments utilize tax credits to incentivize activity that will benefit communities, create jobs, and improve local economies.. These activities range from redeveloping historic buildings to inject new life into neighborhoods to creating affordable housing. Tax credits are also used to encourage environmental improvements and redevelop contaminated industrial and commercial properties.
A well-planned tax strategy can be a powerful force in helping companies meet their financial and operational objectives. But changing regulations, new incentives and evolving standards for compliance make optimal tax planning difficult.
Consortium’s tax specialists spend every day tracking the changing tax landscape to provide forward thinking advice that helps our clients respond to achieve their goals.
(HRTC) HISTORIC REHABILITATION
The rehabilitation of historic buildings brings new life to old structures, repurposing them for today’s business and housing needs. Since 1976, The Federal Historic Preservation Tax Incentives Program has provided a 10 or 20 percent tax credit to incent the preservation of historic residential, commercial and industrial projects. Since the inception of the program, savvy investors, developers and owners have turned to Consortium for our knowledge and guidance on projects that leverage historic tax credits.
(NMTC) NEW MARKETS
The New Markets Tax Credit (NMTC) Program revitalizes low-income and distressed communities—both urban and rural— by encouraging private investment and economic growth through access to capital that they otherwise would not have. Consortium has been active in the NMTC Program since its inception. We work closely with key participants, including the U.S. Treasury’s Community Development Financial Institution (CDFI) Fund, Community Development Entities (CDEs), Qualified Active Low-Income Community Businesses (QALICBs) and others. As a result, we have become nationally recognized leaders in providing assurance, tax, transactional and consulting services for investors and developers looking to participate in the NMTC Program.
Low-income housing tax credits are a compelling way to finance affordable multifamily housing projects, but the process is often difficult and complex. Developers, investors and other participants need to navigate a multitude of government agencies, financial institutions and other hurdles to qualify and move their projects forward. Consortium provides a comprehensive range of services to developers of these multifamily properties. We take a strategic approach, helping clients develop optimal financing methods, maximize awards, and maintain compliance throughout the program.
One of the newest and most talked-about tax credit programs can be found in Section 45 and 48 of the Internal Revenue Code: Energy Tax Credits. This tax credit program focuses on “green” energy, such as wind turbines, solar facilities, geothermal, biomass, fuel cells and other types of renewable, green energy. But tax credit structures are extremely complex, requiring guidance from experienced advisers with an understanding of both the accounting and renewable energy industries.
HOW IT WORKS
We help developers and investors navigate through the numerous federal and state regulations to maximize the benefit of tax credits. Collectively, our professionals have been involved in originating, structuring, underwriting, closing, and asset managing over $2.5 billion dollars of tax credit enhanced real estate developments nationwide. Consortium consistently puts its expertise and breadth of experience to use for every client on every transaction. Our track record has enabled us to forge excellent relationships with nearly all of the flagship third-party resources in the industry, including nationally recognized legal and accounting firms, underwriting firms, and firms specializing in environmental and insurance review, all of which position us to be a valuable addition to your team.