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Investing in tax-credit incentivized projects allows investors to benefit financially, comply with specific regulations (e.g., the Community Reinvestment Act), and make positive changes and create new opportunities in disadvantaged neighborhoods, overhaul blighted areas, rehabilitate historic structures, and provide affordable housing options. Financial institutions, insurance companies, and specialized investors rely on Dickinson Wright when securing and investing in tax-credit advantaged investments, including projects where multiple tax credit investments (so-called twin deals) occur. We likewise have the unique experience of representing clients in sales or acquisitions of portfolios of tax credit-incentivized properties. Post-closing, we support our clients in their asset management needs as well as exits and dispositions. In addition, Dickinson Wright has a nationally recognized public finance team with extensive experience in economic and community development projects.
A Skilled Team Who Can Help Navigate Through Complex Projects
Dickinson Wright’s Tax Credit Finance and Community Development team provides the skilled knowledge and experience necessary to successfully navigate the tax credit incentive arena and provides clients with access to the firm’s full array of business services. Our practical and pragmatic approach has successfully navigated through frequently complex projects for investors, syndicators, lenders, state and local governments and agencies, and developers, all while recognizing the discrete goals and concerns of each type of client. Our team’s broad experience allows us to craft innovative solutions in a complex field prone to pitfalls.
We can provide assistance through all phases of a tax credit or community development transaction, including:
Our tax credit and community development lawyers regularly speak and participate at national and regional tax credit conferences and panels. Team members have also served as outside counsel to state financing authorities, are board members of development sponsors, and are Certified Public Accountants (CPAs) or have a Master of Laws (LL.M) in taxation.
Historic Tax Credits (HTCs) / Rehabilitation Tax Credit
Our lawyers can navigate through the rigors of negotiating and closing rehabilitation tax credit-incentivized financings from a multitude of perspectives. Our experience includes ongoing compliance matters and resolving tax controversies with the Internal Revenue Service as well as exits.
New Markets Tax Credits (NMTCs)
Our experience in New Markets Tax Credits (NMTCs) is comprehensive. We represent leverage lenders, investors, community development entities (CDEs) and their sub-CDEs, developers, and construction lenders. We also have experience closing complex NMTC exits, including those requiring refinancing. We have successfully obtained favorable cost-saving and tax mitigation measures for our clients.
Low-Income Housing Tax Credits (LIHTCs)
We help investors and syndicators deploy capital nationwide into housing and community development projects that are eligible for low-income housing tax credits (LIHTCs), including representation of upper-tier investment structures. We also represent developers in their LIHTC representation needs. Our experience at the project level ranges from scattered-site developments in Ohio to high-rise multiuse developments using multiple layers of private and public debt in the urban core of Chicago.
We also represent issuers in connection with the issuance of tax-exempt bonds for qualified residential rental projects, which are issued in connection with 4% LIHTC financing. We are uniquely positioned to navigate the complex tax-exempt private activity bond rules that apply to qualified residential rental projects, as well as the often overlapping LIHTC tax rules.
State and Local Tax Credits, Development Incentives, and Bond Financing
State and local tax credits, whether they are HTCs, NMTCs, LIHTCs, and other state and local incentives, often parallel federal tax credit programs, but often have specific nuances. We help our clients leverage the availability of these credits to maximize available capital or assist them in securing an attractive investment opportunity.
We also have broad experience navigating other available state and local development incentives in the markets we serve, including property tax abatements, tax increment financing (TIFs), brownfield redevelopment incentives, and other jobs creation-based tax incentive programs.
Our public finance attorneys serve as bond counsel, lender’s counsel, and developer counsel in connection with the issuance of private activity bonds and municipal securities to finance eligible economic development projects and other public-private partnership transactions.