Duane Morris Partner Art Momjian will be a speaker at the New Markets Tax Credit Forum sponsored by the Community First Fund on Tuesday September 13, 2016 from 7:30 am to 11:30 am at The Double Tree Hotel in Reading, PA. The program is designed for community leaders, developers, commercial realtors, commercial lenders, attorneys, CPAs and economic and community development professionals. Speakers will discuss the impact of the Federal New Markets Tax Credit program on commercial development in low income communities.
The CDFI Fund will award $7 billion of New Markets Tax Credit allocation in the next round to be announced by the end of 2016. As a result of the 5 year extension of the New Markets Tax Credit the CDFI Fund has elected to combine two $3.5 billion allocation rounds to create a historic $7 billion allocation of New Markets Tax Credit allocation. The round of awards to be announced by the CDFI Fund later this year will be effected by the December 2015 Certification, Compliance, Monitoring and Evaluation Frequently asked Questions issued by the CDFI Fund last year. Frequently Asked Question 44 eliminates the commonly used “one day loan” for this and future rounds of New Markets Tax Credit allocation awards.
A Duane Morris team of lawyers including Art Momjian, Chris Winter, and Chris Bender represented South Jersey based Parke Bank in its investment in the Federal historic tax credits to be generated by the historic rehabilitation of 1831-1833 Chestnut Street in Philadelphia Pennsyvania. The property is formerly an office building being converted into residential rental apartments. The City of Philadelphia is replete with historic properties which are undergoing adaptive reuse and the Federal historic tax credit program is an important component of the capital stack to fund development costs.
Today the CDFI Fund announced the opening of the next round (2014) of New Markets Tax Credit allocations. Subject to Congressional authorization, the CDFI Fund intends to award $5 billion of New Markets Tax Credit allocation in the next round. Pursuant to the announcement today by the CDFI Fund, CDE applications must be submitted by August 22, 2014, applications for New Markets Tax Credit allocation must be submitted by October 1, 2014, and prior allocates must satisfy their required issuance of qualified equity investments by January 30, 2015.
The Pennsylvania Department of Community and Economic Development has awarded 15 projects in 10 counties in Pennsylvania the first $3,000,000 of Pennsylvania Historic Preservation Tax Credits. The projects receiving awards include buildings ranging from a church, schools, apartment complexes to a shore factory. The largest award was $369,015 and the smallest $13,895. The Pennsylvania Historic Preservation Tax Credit may be bifurcated from the Federal Historic Tax Credit and may be sold by an assignment of a certificate which enable developers to have separate investors for the state and the federal historic tax credits.
The Pennsylvania Department of Community and Economic Development is accepting applications for the Commonwealth’s new historic preservation state tax credit. The Commonwealth will issue no more than $3,000,000 of tax credits each year with no more than $500,000 to a qualified taxpayer in any year. The state historic tax credit may not exceed 25% of the qualified rehabilitation expenditures incurred in connection with the qualified historic rehabiliation of a building. The credit may be used to offset the tax liabilty of the Commonwealth of Pennsyvlania imposed on a taxpayer including Personal Income Tax, Corporate Net Income Tax, Capital Stock-Franchise Tax, Bank and Trust Company Shares Tax, Title Insurance CompaniesShares Tax, Insurance Premiums Tax, Gross Receipts Tax or Mutual Thrift Institution Tax. The tax credit provided may be carried over and applied to succeeding taxable years for not more than seven taxable years following the first taxable year for which the qualified taxpayer was entitled to claim the credit. A qualified taxpayer, upon application to and approval by DCED may sell or assign, in whole or in part, unused credits granted to another qualified taxpayer.
The U.S. Department of the Treasury’s Community Development Financial Institutions Fund today announced $3.5 billion in New Markets Tax Credit awards aimed at revitalizing low-income communities and increasing economic opportunity nationwide. A total of 87 organizations across the country received tax credit allocation authority under the calendar year 2013 round of the New Markets Tax Credit Program. This round awarded today represents the last round of New Markets Tax Credit authority currently authorized by Congress.
On Tuesday April 8, 2014 Art Momjian Chair of the Duane Morris Affordable Housing, Community Development, and Syndication Practice Group will speak at a continuing legal education program titled “The Historic Tax Credit Program: Who is a Partner after the New IRS Safe Harbor Rules and the Historic Boardwalk Hall”. The Program is scheduled for 12:30 pm EST at the Philadelphia Office of Duane Morris LLP. The program will also be video cast in most of the Duane Morris national offices. For further information and to register please contact either Art Momjian at firstname.lastname@example.org or Richard Weinstein at email@example.com.
On July 29, 2013, the CDFI Fund published the Notice of Allocation Authority (“NOAA”) for the calendar years 2013 and 2014 Allocation Round of the Federal New Markets Tax Credit (“NMTC”) Program. The NOAA announced the availability of up to $8.5 billion of NMTC allocation authority for calendar years 2013 and 2014, $3.5 billion of which was authorized by the American Taxpayer Relief Act of 2012 and an additional $5 billion which was subject to Congressional authorization. The CDFI Fund has not received Congressional allocation authority for calendar year 2014. As a result, the CDFI Fund has amended the NOAA to award the authorized allocation authority for only calendar year 2013 in the amount of $3.5 billion. The CDFI Fund announced that it anticipates making awards under the calendar year 2013 round in late spring of 2014.