BarbriSFCourseDetails
  1. keyboard_arrow_leftBack

Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    Real Property - Finance

Date & Time
  • event Date

    Thursday, November 12, 2020

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

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.

Faculty

Michael I. Sanders
Partner
Blank Rome LLP

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.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
Thomas Boccia
Partner
Novogradac & Company, LLP

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.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio
Myriam Sido Simmons
Director, Credits and Incentives Consulting
Ryan, LLC

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.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

Description

The NMTC program presents significant opportunities for investors in economic development projects to secure additional financing to complete projects in low-income areas. For 2020 Congress authorized $5 billion in funding for the NMTC program, and more allocations are expected by year-end.

NMTCs can offer a critical source of financing for a variety of qualified equity investments (QEIs), including mixed-use affordable housing, charter schools, historic preservation projects, manufacturing, food and beverage processing, federally qualified health centers, and renewable energy projects. These tax credits are subject to recapture during the seven-year credit period if a QEI fails to satisfy specific investment and qualified business requirements.

Counsel must understand the recapture triggers, the impact of the IRS safe harbor for HTCs and current regulations relating "qualified active low-income community businesses" and "qualified low-income community investments," true debt issues, lease vs. ownership issues, the economic substance doctrine, and cancellation of indebtedness planning when negotiating new transactions, evaluating existing deals, or twinning NMTCs with other tax credit and tax deferral programs.

Listen as our authoritative panel discusses best practices for structuring NMTC deals, twinning with HTCs, QOZs, and renewable energy ITCs or PTCs, coordinating with USDA/SBA lending, and allocating COD income among partners. The panel will also discuss trends in the NMTC program, IRS regulations and guidance, and legislative developments under the new administration.

Outline

  1. Structuring an NMTC deal
  2. Historic tax credit safe harbor
  3. Qualification issues/deal readiness/tax opinion issues
  4. Twinning of NMTCs with HTCs, QOZs and other tax benefits
  5. Allocation of costs in an unwind
  6. Drafting operating agreements to cover the allocation of COD income among partners
  7. Restructurings/workouts during the seven-year compliance period; recapture risk
  8. 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?