Novogradac Journal of Tax Credits

3 weeks ago | novoco.com | Michael Novogradac

Federal tax incentives spur billions of dollars of equity investment in community development, including affordable housing, historic preservation, health care facilities, manufacturing plants and more. As Congress considers legislative proposals to expand existing incentives–particularly the low-income housing tax credit (LIHTC), historic tax credit (HTC) and new markets tax credit (NMTC)–legislators should also consider changes that would further increase investor interest.

1 month ago | novoco.com | Michael Novogradac

When I testified about community development tax incentives last summer before the Senate Finance Committee, the first question from Sen. Mike Crapo, R-Idaho (then the ranking member, now the chair), was how Congress could help enhance the efficiency of using multiple tax incentives together.

2 months ago | novoco.com | Julie Sharp

The market for federal low-income housing tax credit (LIHTC) investments is off to a tepid start in 2025. Some investors are sidelined as the market weighs potential tax reform. Additionally, tariffs imposed by the Trump administration are poised to increase the cost of project materials and construction pricing. Given reduced federal LIHTC pricing coupled with higher costs, affordable housing developers are increasingly looking to solve budget gaps in project proformas.

2 months ago | novoco.com | Michael Novogradac

Rather than wait on Congress, states should act now to increase the supply of affordable rental housing by optimizing how they use their private activity bonds (PABs) cap.

Mar 3, 2025 | novoco.com | Michael Novogradac

This year presents a rare moment for the opportunity zones (OZ) incentive to be enhanced and made permanent. Why? The Republican-controlled Congress and President Donald Trump are widely expected to prioritize the enhancement and permanence of OZs as they strive to enact a tax bill that extends many of the expiring provisions of the 2017 Tax Cuts and Jobs Act. That 2017 tax bill enacted the OZ incentive. The OZ incentive has driven billions of dollars of private equity into low-income communities.