Friday, December 3, 2010

Possible Extension of 1603 Grant in the Works???

26 Senators have signed a letter to Senate leaders urging a 2 year extension of the 1603 Renewable Energy Grant program.  This is a refreshing development that could spur tremendous growth in the renewable energy sector.  For more information and a copy of the letter, take a look at Novogradac's article

Wednesday, November 3, 2010

New Guidance Issued on Section 1603 Renewable Energy Grants

The Treasury Department has revised its previous guidance regarding what constitutes the beginning of construction for purposes of accessing the grant under Section 1603 of the American Recovery and Reinvestment Act, in lieu of renewable energy tax credits.  For projects that will be placed in service after 2010, construction must begin by December 31, 2010.  The applicant can show that construction has begun either (i) by showing that physical work of a significant nature has taken place, or (ii) by satisfying a 5% safe harbor test. 

In order to satisfy the safe harbor test, applicants requesting payments of $1 million or more must submit an independent accountant's examination opinion attesting to the accuracy of the costs claimed.  Applicants requesting less than $1 million, but whose eligible basis is more than $500,000, may submit a report of Agreed Upon Procedure (AUP) by an independent accountant in lieu of the examination opinion.  To further assist taxpayers and accountants in complying with these requirements, Treasury has provided new guidance that includes AUP report instructions and example, as well as a checklist of requirement under both tests to show beginning of construction. 

Wednesday, September 22, 2010

New Senate Bill would extend NMTCs and LIHTC grant exchange

The Job Creation and Tax Cut Act of 2010, introduced last week, has several key provisions that would impact tax credits, if it passes.  Of particular interest are provisions that would extend the New Markets Tax Credit program for one year, extend the Section 1602 Low Income Housing Tax Credit grant exchange program for one year, and allow New Markets Tax Credits to offset the alternative minimum tax for a limited time.  Click here to see the full text of the bill or get a summary of the bill's provisions here.

Friday, September 3, 2010

Treasury Provides Sample Annual Report for Section 1603 Grant

Last week, the Treasury Department provided a sample annual report for the Section 1603 Renewable Energy Grant program.  The cash grant is provided in lieu of renewable energy tax credits for a limited time.  Annual reports are required to be submitted under the program for the first five years after the project is placed in service.  For more information on the Section 1603 grant program, click here.

Friday, August 27, 2010

Welcome to the SC Tax Credit Blog!

The SC Tax Credit Blog is intended to keep tax credit professionals, real estate developers, tax credit investors, and other interested parties informed about changes to, and issues affecting, various state and federal tax credits available in South Carolina.  While the blog will focus primarily on state tax credit issues particular to South Carolina, I may also include posts on federal tax credit issues from time to time.

The state tax credits I intend to focus on include the following:
  • SC Textile Mill Tax Credit - This credit is available to a taxpayer who rehabilitates a textile mill site in South Carolina.  The credit is equal to 25% of qualified expenditures and may be used against South Carolina income taxes, insurance premium taxes, corporate license fees, or property taxes. 
  • SC Historic Rehabilitation Tax Credit - This credit is available to any taxpayer that qualifies for and receives the Federal Historic Rehabilitation Tax Credit on a property in South Carolina.  The credit is equal to 10% of the qualified expenditures and may be used against SC income taxes or corporate license fees.  
  • SC Abandoned Retail Facility Tax Credit - This credit is generally available to any taxpayer who improves, renovates, or redevelops a large abandoned retail space in South Carolina.  It is generally equal to 10% of the qualified expenditures when used against income taxes and 25% of the qualified expenditures when used against property taxes. 
  • Renewable Energy Tax Credits - A number of state tax credits are available in South Carolina that are designed to encourage development and use of renewable energy facilities and resources.  
Federal tax credits I intend to follow include:
  • Rehabilitation Tax Credits
  • Renewable Energy Tax Credits
  • Low Income Housing Tax Credits
  • New Markets Tax Credits

I sincerely hope you enjoy the blog and find it to be a valuable resource for you.  I would encourage anyone who is so inclined to provide your comments, feedback, or contributions to the blog by either posting them as comments to my blog posts, or by forwarding them to me for inclusion on the blog.

Friday, June 4, 2010

IRS Releases Audit Guide for NMTC Program

See the details and get the audit guide on Novagradoc's website.

SC Textile Mill Credit Amendments Signed into Law

Gov. Sanford signed the SC Textile Mill Credit amendments into law on Friday, May 28th.  This should make it easier for investors to use the credits, thereby increasing their value and marketability.