Leveraging New Markets Tax Credits to Finance Community Development: Latest Regs, Guidance, and Legal Developments
Twinning With Historic Tax Credits and Qualified Opportunity Zones, Allocating COD Income to Partners
Note: CPE credit is not offered on this program
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will provide counsel with an overview of the New Market Tax Credit (NMTC) program and IRS regulations and guidance. The panel will discuss best practices for structuring NMTC deals, twinning with historic tax credits (HTCs) and Qualified Opportunity Zones, and allocating COD income among partners.
Outline
- Structuring an NMTC deal
- Historic tax credit safe harbor
- Qualification issues/deal readiness/tax opinion issues
- Twinning of NMTCs with HTCs, QOZs and other tax benefits
- Allocation of costs in an unwind
- Drafting operating agreements to cover the allocation of COD income among partners
- Restructurings/workouts during the seven-year compliance period; recapture risk
- Legislative developments
Benefits
The panel will review these and other key issues:
- What are best practices for structuring NMTC deals to ensure compliance with IRS program requirements?
- What roles can nonprofit 501(c)(3) organizations play in NMTC deals, and what issues should they consider before entering into these transactions?
- What is the potential impact on the use of NMTCs of the IRS safe harbor for partnerships claiming rehabilitation tax credits?
- How are NMTC deals impacted by cancellation of indebtedness?
Faculty
Thomas Boccia, CPA
Partner
Novogradac & Company
Mr. Boccia specializes in community development, including historic rehabilitation tax credit (HTC), new markets tax... | Read More
Mr. Boccia specializes in community development, including historic rehabilitation tax credit (HTC), new markets tax credit (NMTC) and low-income housing tax credit (LIHTC) transactions. He has more than 30 years of public accounting experience providing audit, tax and consulting services.
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Michael I. Sanders
Partner
Blank Rome
Mr. Sanders focuses his practice in the area of taxation, particularly in matters affecting partnerships, limited... | Read More
Mr. Sanders focuses his practice in the area of taxation, particularly in matters affecting partnerships, limited liability companies, S-corporations, real estate, tax controversy, and estate planning, including trusts and estates. He also has a large practice in the area of exempt organizations involving healthcare and low-income housing, associations and joint ventures between for-profits and nonprofits, as well as structuring New Markets Tax Credit ("NMTC") and Historic Tax Credit ("HTC") transactions. He is the author of Joint Ventures Involving Tax-Exempt Organizations (3rd Ed., 2007; 4th Ed., 2013) which was recently cited by the majority opinion in the widely covered U.S. Supreme Court decision in Burwell v. Hobby Lobby Stores, Inc. He previously served as an attorney-advisor to the assistant secretary of tax policy at the Office of Tax Legislative Counsel.
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Myriam Sido Simmons
Director, Credits and Incentives Consulting
Ryan
Ms. Simmons specializes in providing business incentives services to private sector clients and leads the New... | Read More
Ms. Simmons specializes in providing business incentives services to private sector clients and leads the New Market Tax Credit (NMTC) service within the Credits & Incentives Practice. She currently focuses her practice on securing NMTC allocations at both the state and federal level by utilizing her relationships with an extensive network of Community Development Entities. She also provides comprehensive business incentive services to clients by identifying, negotiating and securing federal, state and local tax credits and business incentives and advises multi-national companies as they establish new facilities, consolidate or expand facilities, increase employment, and/or incur costs due to training. Prior to Ryan she created and led the NMTC practices at two Big 4 public accounting firms.
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