Related Practice Areas:
Government Relations
Land Use & Zoning
Legislative & Regulatory Affairs
Public Finance
Public-Private Partnership
Tax
Partners:
Alan L. Kennard
Mark A. Huddle
Marcia Owens
Alan B. Roth
Louis P. Vitullo
Tax Credits
Wildman Harrold's Tax Credit Practice has extensive experience counseling investors, lenders, borrowers and community development entities on tax credit programs including new markets tax credits, historic rehabilitation tax credits, low-income housing tax credits and energy tax credits. Our attorneys regularly lecture on these topics and work with federal and state lawmakers with respect to proposed legislation.
New Markets Tax Credits - Wildman Harrold attorneys have represented investors, lenders, borrowers and community development entities in innovative and highly complex new markets tax credit (NMTC) transactions. The NMTC program encourages investment in low-income communities by providing a tax incentive for qualified investments. Investors, lenders and developers involved in NMTC transactions consult Wildman Harrold to maximize the benefits of NMTC transactions because our attorneys are collectively skilled in tax law, partnership, lending, corporate and real estate law. Lawyers in our Syndication Group have developed extensive experience in structuring and closing NMTC transactions since the inception of the program.
The NMTC is often paired with the Historic Rehabilitation Tax Credit, taxable and tax-exempt financing, tax incremental financing, funding from community development and redevelopment programs, Community Reinvestment Act lending or various state tax credit programs. We have technical and practical know-how in each of these areas. Our tax attorneys and other lawyers often consult with clients and industry groups, as well as with the Treasury Department and the CDFI Fund, to resolve tax and structuring issues that have arisen as the NMTC program has evolved.
Examples of projects that have been financed with NMTC proceeds include revitalization of downtown areas centered on renovations or construction of office buildings, infrastructure improvements, commercial and retail buildings, shopping centers, mixed-use projects, for-sale affordable housing, workforce housing, transitional housing, hotels, arts centers, theaters, charter schools, hospitals, assisted-living facilities, nursing homes, college campuses, high-tech and biotech facilities, homeless shelters, and facilities to assist educating the homeless.
Historic Rehabilitation Tax Credits - Our attorneys have structured, documented, negotiated, and closed numerous transactions involving the federal historic rehabilitation tax credit for both investors and developers. We have also handled transactions that have combined historic tax credits with low-income housing tax credits and/or state tax credits, as well as federal new markets tax credits. Through our representation of investment funds and direct investors, we have developed significant experience structuring transactions sponsored by, or otherwise involving, nonprofits, and government entities, as well as corporate, institutional, and individual participants.
The federal historic tax credit has grown into a key driver of downtown real estate investment and community revitalization since its introduction in 1976. The Federal Historic Preservation Tax Incentives program encourages private sector rehabilitation of historic buildings and is one of the nation's most successful and cost-effective community revitalization programs. It generate jobs and creates moderate and low-income housing in historic buildings. The program is administered by National Park Service and the Internal Revenue Service in partnership with State Historic Preservation Offices.
Low Income Housing Tax Credits - Wildman Harrold's Tax Credit Practice represents investors, developers, housing authorities, bond issuers and other transaction participants with respect to the low-income housing tax credit, which is a versatile tax-advantaged equity real estate investment. Our attorneys deal with a range of clients in the affordable housing and tax credit industry, and we provide comprehensive and informed representation, and cover everything from determining the best structure for the transaction to advising on complex tax issues. We also protect transaction participant interests in resyndication, whether a participant is a general or a limited partner. Partnership investments made earlier can be repackaged and sold in the secondary market. We also represent buyers of partnership interests in the secondary market and negotiate the purchase of portfolios of resyndicated product.
Affordable Housing and Community Development - Our attorneys provide representation involving strategic planning, development, tax advice, closing transactions, ongoing operations, or workout of troubled projects. We provide counsel for a full range of affordable housing, multifamily housing and community development matters. Our attorneys are involved with all significant federal, state, and local housing and community development programs. We have the transactional, regulatory and policy experience and relationships to handle all business needs in this complex area. We regularly represent developers, for-profit and non-profits, investors, lenders and underwriters, housing authorities and housing finance agencies.
We advise clients on all affordable housing and community development programs, including: HUD/FHA multifamily loan programs; HUD’s Section 8 and Housing Choice Voucher rental assistance programs, public housing (including redevelopment of public housing under HUD’s HOPE VI and mixed finance programs); tax-exempt bond financing for housing and community development; Fannie Mae and Freddie Mac multifamily loan and investment programs; community and economic development programs (including HUD's Community Development Block Grants (CDBG); Section 108 and Economic Development Initiative programs, as well as Empowerment Zones and Enterprise Communities); representation in connection with administrative, civil and criminal investigations and actions by HUD, the Justice Department and other government agencies; and compliance programs, investigations and litigation in connection with accessibility issues under the Fair Housing Act, Section 504 of the Rehabilitation Act, the Americans with Disabilities Act, and state and local fair housing laws.
Renewable Energy Tax Credits - Wildman Harrold provides legal assistance to clients that are developing, financing or investing equity capital in renewable energy facilities, such as wind and solar facilities, that qualify for energy tax credits under Section 45 or Section 48 of the Internal Revenue Code. We assist our clients in structuring the transactions in such a way to enable the developer of a facility to organize an operating entity and contract with power purchasers, equipment installers, utility companies, purchasers of renewable energy certificates and providers of both installation and permanent debt financing; and also to enable equity investors to contribute capital to the operating entity while isolating themselves from operating liability in consideration for being allocated tax and economic benefits from the operating entity.
State Tax Credits - Wildman Harrold's Tax Credit Practice has extensive experience with respect to various state tax credit programs, which vary greatly and present a myriad of tax and structuring issues. For example, while some state low-income housing tax credits are delivered to the owner and investors over the same 10-year period as the federal low income housing tax credits, other state tax credits deliver benefits over different periods of time. Some state credits can be bifurcated, some cannot. Some can be freely transferred, some cannot. State Historic Tax Credits also vary greatly from state to state. Our attorneys understand these nuances and can apply their know-how to your transactions.
Syndication - Wildman Harrold represents syndicators, investors, developers, lenders and government agencies in various syndication matters. Our attorneys have closed hundreds of tax-advantaged equity investments. We have counseled clients in structuring, negotiating and documenting transactions involving the Low-Income Housing Tax Credit, the Historic Rehabilitation Tax Credit, the New Markets Tax Credit, Renewable Energy Tax Credit, Guaranteed Tax Credit, HOPE IV and mixed-finance transactions, and State Tax Credits. We continue to provide representation long after the structuring of the original transaction. Our core group of tax, real estate, and work-out practitioners continue to represent partnerships and limited liability companies with portfolio management at the fund and property levels. Our attorneys counsel clients on asset compliance for all properties, regardless of whether Wildman Harrold assists with the initial closing. We understand the additional complexities of refinancing or selling a tax credit property. If financial difficulties arise and a workout is required, we will coordinate an effective plan for you with the advice of our firm's bankruptcy, creditor's rights and litigation teams.