In December, 2017, the Tax Cuts and Jobs Act of 2017, established Opportunity Zones by way of a provision of the Internal Revenue Code i.e Section 140OZ-2 (the "OZ Rules"). Pursuant to the OZ Rules, Treasury directed the individual states to designate certain census tracts as Opportunity Zones.
These are exciting times in the tax credit world! In addition to tax cuts, the 2017 Tax Reform brought about other significant changes, including “Opportunity Zones”, which are a new concept that can potentially link tax credit projects and capital gain deferrals in a single deal.
At this point in the fourth quarter of any given year, businesses and their principals are beginning to consider — and to plan for — their 2016 tax liabilities.
The second of the Cherrytree series of blog posts designed to highlight some recent tax credit news.
As an overarching description, the Cherrytree Group is a group of entities that offers tax credit brokerage, syndication, and specialty finance services. The Group, in fact, is comprised of several affiliated entities that help clients with various aspects of their real estate projects. Most of our work stems from deals involving state and/or federal tax credits, encompassing four main types of credits: Brownfields (BTC), renewable energy (ITC), historic rehabilitation (HTC), and low-income housing (LIHTC).
Simply stated, a tax credit is a dollar-for-dollar offset against taxes that are due to either the state or federal government. Taxpayers can utilize their tax credits to offset taxes, or transfer their tax credits to
The Affordable Housing Credit Improvement Act, which was introduced on May 16, 2016, could aid almost four million households that lack affordable housing.