Ulmer & Berne LLP tax and community development attorneys have extensive experience assisting clients with the broad range of tax issues that arise in connection with the structuring, negotiating, documenting and closing of projects involving New Markets Tax Credits (NMTC) including the leveraged model, historic tax credits (both federal and state), renewable energy tax credits and Low Income Housing Tax Credits (LIHTC) and multiple credit transactions, tax increment financing, facade easements, conservation easements and lost development easements.
Our multidisciplinary group combines the knowledge and expertise of highly skilled attorneys experienced in advising developers, investors and lenders on tax advantaged investments involving:
- Historic Tax Credits
- LIHTC
- NMTC
- Preservation Easements
- Renewable Energy Tax Credits
Historic Tax Credits
State and federal historic rehabilitation tax credit programs provide tax subsidies to those who invest in the rehabilitation of historic districts and landmark buildings. Ulmer & Berne’s attorneys have experience advising on projects that qualify for historic tax credits. Our attorneys are well-versed on the similarities and differences between state and federal historic tax credits. We work with the developers of these projects, as well as the project investors and lenders, to identify and resolve the tax issues involved in these transactions and assist structuring the financing related to these credits. Our attorneys have managed a broad range of historic rehabilitation tax credit transactions across Ohio and other states and have been involved with the first projects to successfully close with the Ohio Preservation Tax Credit.
LIHTC
Our attorneys have been advising clients on LIHTC transactions since the program’s inception in 1987. The LIHTC program allows 4 percent and 9 percent credits for affordable housing projects. We take a multidisciplinary approach and rely on the talents of attorneys across several different practice groups to help clients navigate tax issues and identify the best structure for their transaction.
NMTC
The NMTC program provides tax incentives on qualified investments in qualified businesses in low-income communities. The NMTC program allows a 39 percent credit to be taken over seven years for qualified investments. We advise investors, developers and lenders on the tax issues involved in structuring and closing NMTC deals under state and federal guidelines.
Preservation Easements
Preservation easements are legal tools designed to protect significantly historic properties. When properly structured, preservation easements can ensure long-term preservation of your historic property and provide tax benefits. Facade and lost development easements create a charitable contribution deduction equal to the value of the easement. Facade easements are based on a percentage of the building’s value. Lost development easements are based on the lost potential of the site. We help clients understand their tax advantages and liabilities, and finance these projects using easements and effectively navigate the extensive auditing process involved with preservation easements.
Renewable Energy Tax Credits
Section 45 and 48 of the Internal Revenue Code identifies tax credits for qualified investments in wind, solar and other renewable energy facilities. Eligible facilities – solar, wind, fuel cell, geothermal and micro-turbine – can receive a credit equal to 30 percent of the investment. We help clients understand the requirements of this tax code and maximize the benefits of renewable energy tax credit transactions and the financial advantages these credits can bring to these projects.