Archive for Tax Credits

Feb
08

Tax Credit Marketplace, LLC Announces $13 million 2016 Fund Closing

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TCMGreenville, SC-based Tax Credit Marketplace, LLC (“TCM”) announces the successful closing of the 2016 SC Revitalization Tax Credit Fund, LLC (“2016 Fund”).

The 2016 Fund invested in a variety of qualifying development projects, which generated approximately $13 million in South Carolina income tax credits. The 40 investors in the Fund utilized these tax credits to reduce their SC Tax liability. The 2016 Fund included projects from multiple asset classes, including hospitality and distribution centers.

“TCM has multiple projects under review for its 2017 and 2018 funds and is currently seeking additional qualifying projects statewide to invest in,” According to Michael Wolf, VP of Development for TCM. “Based on an increasing investor demand and development momentum, we expect future funds to be significantly larger than the 2016 Fund”.

Developers and property owners understand that they can create a competitive advantage by properly utilizing the SC Revitalization Acts (“Acts”) to attract additional capital for their projects. These projects often generate more Tax Credits than a developer or property owner can personally utilize. TCM is able to offer developers/property owners the opportunity to monetize these excess Tax Credits, resulting in cash flow that would otherwise be missed.

The Revitalization Acts encourage private investment to alleviate adverse real estate conditions such as abandoned and historic buildings. The Acts also make it easier for developers and communities to enhance nearby property values, create local jobs, and form the “sense of place” that has become such an important factor in deciding where we live, work, and play. Effectively, the state has decided to underwrite the rebirth and redevelopment of SC cities and towns.

“The Acts for all four types of Tax Credits have been updated, extended, and/or enhanced in the past 2 years. Most notably, the utilization periods for some of the Tax Credits have been shortened from 5 years to 3 years, and the Tax Credits are no longer limited to 50 percent of a taxpayer’s SC tax liability. They can now be applied to 100 percent of the liability” says TCM Chief Operating Officer Josh Workman. “SC communities, developers, property owners and credit investors have definitely benefited from these revisions.”

Categories : Greenville
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Jul
23

Greenville Firm Announces Marketplace for State Tax Credits

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The new Greenville-based Tax Credit Marketplace, LLC has announced opening of a marketplace for the efficient transfer of State Tax Credits.  The Company matches developers and property owners who generate State Tax Credits under one of three revitalization acts currently offered in South Carolina with investors interested in purchasing credits.  The process allows developers in South Carolina to monetize their tax credits, bringing additional, often substantial dollars back into their projects.  The process is completed through an online auction website that allows accredited investors to invest in projects, receive an allocation of credits, thereby reducing the out of pocket costs for state income taxes. As of 2014, the principals of Tax Credit Marketplace, LLC have successfully facilitated the sale/transfer of approximately $9 mm in South Carolina credits and several potential projects are currently in various stages of due diligence.  Tax Credit Marketplace, LLC’s auction-style website launched in July and the first auction is scheduled for late August or early September.

Tax Credit Marketplace, LLC also announces the hiring of Michael Wolf as Vice President, Business Development.  He will be located in the Greenville office and will be responsible for sourcing credit-eligible projects throughout the entire state of South Carolina.  Prior to joining TCM, Mr. Wolf spent 10 years in commercial banking.

Categories : Greenville
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Feb
13

SC Abandoned Buildings Revitalization Act

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The Abandoned Buildings Revitalization Act tax credit is the final economic development tool covered in this series prepared by the Municipal Association of SC. The General Assembly passed the act “to create an incentive for the rehabilitation, renovation and redevelopment of abandoned buildings located in South Carolina” by offering a state income tax or property tax credit to eligible projects.

The ABRA credit can be a powerful catalyst for rehabilitating empty and underutilized buildings that contribute to blight and safety concerns in urban and rural communities. This credit is structured and administered in a manner very similar to the textile revitalization and retail facilities credits.

READ MORE HERE

Categories : South Carolina News
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Jan
07

New Markets Tax Credit Program Extended for Two Years

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On January 2, 2013, President Barack Obama signed the American Taxpayer Relief Act of 2012 (H.R. 8) into law which, in addition to addressing other “fiscal cliff” issues, extends the New Markets Tax Credit (“NMTC”) Program for two years. The Act provides for an annual maximum limit on allowable qualified equity investment of $3.5 billion for each year, mirroring the limits in 2010 and 2011.

This much anticipated, widely endorsed extension of the NMTC Program will continue to support and incentivize investment in qualified low-income community businesses. The legislation effectively permits $7 billion of new investments to generate NMTCs. Industry experts anticipate that the Community Development Financial Institutions (“CDFI”) Fund will announce the community development entities (“CDEs”) selected to receive $3.5 billion in NMTC allocations under the tenth round of the NMTC Program in February, consistent with the timing of the announcement for the prior round. (An additional $3.5 billion of awards will be announced in 2014).

 

Categories : National News
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