Tax Credits Resource Directory

The federal HTC program has helped revitalize communities by encouraging the flow of private funds to facilitate the rehabilitation of historic buildings. Under the program, the costs of rehabilitation and restoration of certified historic properties are subsidized by transferring HTCs from project sponsors to third parties, which may include national banks and federal savings associations. The National Park Service within the U.S. Department of the Interior and the Internal Revenue Service jointly administer the Historic Tax Credit Program in partnership with State Historic Preservation Offices.

Federal Resources

National Park Service

• U.S. Department of the Interior, National Park Service (NPS)
  The National Park Service (NPS) administers the Historic Tax Credit program jointly with the Internal Revenue Service (IRS) and in partnership with State Historic Preservation Offices (SHPOs). They offer a wealth of resources including:
  • Historic Preservation Tax Incentives - Michael Auer (2010)
  • Program Regulations for Historic Tax Credits - 36 CFR 67

U.S. Department of the Treasury, Internal Revenue Service (IRS)

• Rev. Proc. 2014-12
  This revenue procedure establishes the requirements (the safe harbor) under which the Internal Revenue Service will not challenge partnership allocations of Section 47 rehabilitation credits by a partnership to its partners.
• "Income Inclusion When Lessee Treated as Having Acquired Investment Credit Property," 81 FR 47739 (PDF) (July 22, 2016)
• Tax Aspects of Historic Preservation Frequently Asked Questions

Industry Organizations and Professional Associations

National Conference of State Historic Preservation Officers (NCSHPO)
NCSHPO is the professional association of the state government officials who carry out the national historic preservation program as delegates of the Secretary of the Interior pursuant to the National Historic Preservation Act of 1966, as amended (NHPA) (16 USC 470). The NHPA provides for the designation of a State Historic Preservation Officer (SHPO) in each state.

National Housing & Rehabilitation Association (NH&RA)
NH&RA is an association for professions in the historic rehabilitation, affordable housing, new markets, and renewable energy tax credit programs. In addition, the association produces Tax Credit Advisor publications for organizations interested in financing tax credit projects.

National Trust for Historic Preservation
The National Trust for Historic Preservation is a private, nonprofit membership organization dedicated to saving historic places and revitalizing America's communities by providing industry leadership, education, advocacy, and resources.

• The Historic Rehabilitation Tax Credit Recapture Survey
  The National Trust for Historic Preservation commissioned this study to determine the frequency and amount of recapture that investors have experienced with the federal historic rehabilitation tax credit (HRTC). The study was conducted using an on-line survey of a group of HRTC investors that have made significant investments. Respondents indicate that of the total HRTCs claimed, they have experienced a recapture rate of less than three-quarters of one percent over the past 10 years.
• National Trust Community Investment Corporation (NTCIC)
  The National Trust Community Investment Corporation (NTCIC) makes equity investments in real estate projects that qualify for federal historic tax credits and other tax credit transactions. This site includes an interactive tax credit guide to walk through the three stages of utilizing historic tax credits: Qualifying, Earning, and Redeeming. The site also offers a tax credit calculator, to discover the value of the tax credits generated by a project.

Novogradac Historic Tax Credit Resource Center
The resource center offers information on IRS rulings, legislation, studies and reports, and breaking news on Historic Tax Credits.

OCC Resources

• Community Developments Fact Sheet: Historic Tax Credits (July 2017)
• Community Developments Insights: Historic Tax Credits: Bringing New Life to Older Communities (August 2017)
  This updated report describes how the Historic Tax Credit program operates, outlines the risks and regulatory considerations of participation in the program, and discusses how investments in these transactions may be considered under the Community Reinvestment Act.

Public Welfare Investments

National banks may make investments that are primarily designed to promote the public welfare under the investment authority in 12 USC 24(Eleventh) (PDF) and the implementing regulation, 12 CFR 24. This authority allows banks to make investments that primarily benefit low- and moderate-income individuals, low- and moderate-income areas, or other areas targeted by a government entity for redevelopment, or if the investment would receive consideration under 12 CFR 25.23 (the Community Reinvestment Act regulation) as a "qualified investment." Examples of these investments include supporting affordable housing and other real estate development, providing equity for start-up and small business expansion, and revitalizing or stabilizing a government-designated area (see the Public Welfare Investments Fact Sheet for details).

National banks seeking to provide financing to tax credit projects under the public welfare investment authority must either request prior OCC approval or submit an after-the-fact notice to the OCC, depending on the bank's safety and soundness profile, CRA performance, and the nature of the project financing. Federal savings associations may make similar public welfare investments under 12 CFR 560.36.

Federal savings associations have limited authority under 12 CFR 160.36 (De Minimus Investments) to make investments of the type permitted for national banks under 12 CFR 24.¹

Federal savings associations are also authorized under 12 CFR 159 to make investments in service corporations engaged in broad range of preapproved activities, including certain community development related investments and activities that include "investments in low-income housing tax credit and new markets tax credit projects and entities authorized by statute (e.g. community development financial institutions) to promote community, inner city, and community development purposes."

For more information, please see the Public Welfare Investments Resource Directory.

If you need additional assistance, please call the Community Affairs Department at (202) 649-6420 or contact your District Community Affairs Officer.

Community Reinvestment Act (CRA) Consideration

Community Developments Fact Sheet: CRA: Community Development Loans, Investments and Services

The LIHTC program was established by the Tax Reform Act of 1986 (Internal Revenue Code Section 42) to create market incentives for the acquisition and development or rehabilitation of affordable rental housing. The equity capital generated from the tax credits lowers the debt burden on LIHTC properties, making it easier for owners to offer lower, more affordable rents, while investors, such as banks, obtain a dollar-for-dollar reduction in their federal tax liability. Over the past 25 years, this program has become an important tool for addressing the nation's affordable housing needs.

The Internal Revenue Service is the federal agency responsible for administering the LIHTC program. LIHTCs are distributed to state housing finance agencies on an annual basis. The state HFAs then allocate the credits to qualified affordable housing development projects on a competitive basis. HUD collects overview data on LIHTC projects, and provides resources for using the program to develop affordable rental housing.

Federal Resources

Internal Revenue Service

• Internal Revenue Code, Section 42
  Low-Income Housing Credit
• "IRS Resources About Tax Exempt Bonds"
  Internal Revenue Service, U. S. Department of the Treasury

State Housing Finance Agencies

• National Council of State Housing Agencies (NCSHA)
  NCSHA was created by the nation's state Housing Finance Agencies (HFAs) as a nonprofit affordable housing advocacy organization that represents state HFAs, the District of Columbia, Puerto Rico and the Virgin Islands, two (non-HFA) state agencies that allocate LIHTCs, and for profit and nonprofit firms in the affordable housing field. The website also has a directory of state housing finance agencies.

U.S. Department of Housing and Urban Development (HUD)

• "Low-Income Housing Tax Credits"
  A searchable dataset of all of the LIHTC projects placed into service.

Industry Organizations and Professional Associations

Affordable Housing Investors Council (AHIC)
AHIC provides information about the benefits of investing in affordable housing tax credit properties, educates corporate investors on all aspects of affordable housing, and discusses issues of importance to investors in the industry.

Affordable Housing Tax Credit Coalition
The Affordable Housing Tax Credit Coalition is a group of developers, syndicators, lenders, nonprofit groups, public agencies, and others concerned with the low-income housing tax credit.

CohnReznick Affordable Resource Center
The Center has a variety of materials including a report entitled "Housing Tax Credit Investments: High Performance and Increased Need" that looks at how LIHTC properties have performed through 2016.

Housing Tax Credit Investments: High Performance and Increased Need (September 2017)

National Association of Local Housing Finance Agencies (NALHFA)
NALHFA is a national association of professionals, including city and county agencies, non-profit organizations, underwriters, consultants, financial advisors, bond counsels, and rating agencies, who help finance affordable housing in the broader community development context at the local level.

National Association of State and Local Equity Funds (NASLEF)
NASLEF promotes the efficient management of state and local equity funds to create or rehabilitate affordable rental housing throughout the United States.

National Housing & Rehabilitation Association (NH&RA)
NH&RA is an association for professions in the historic rehabilitation, affordable housing, new markets, and renewable energy tax credit programs. In addition, the association produces Tax Credit Advisor publications for organizations interested in financing tax credit projects.

Novogradac Affordable Housing Resource Center
News, facts and figures, federal and state guidance, research and reports, and other resources on the LIHTC program.

National Not-For-Profit Syndicators and TA Providers

National Equity Fund (NEF)
NEF, an affiliate of the Local Initiatives Support Corporation (LISC), was created as LISC's tax-credit syndication arm in 1987 to help deliver additional capital to Community Development Corporations (CDCs) focused on affordable housing development.

OCC Resources

Community Developments Fact Sheet: Low-Income Housing Tax Credit Program (October 2016)
OCC Web and Telephone Seminar, "Low-Income Housing Tax Credit Funds: Investment Opportunities for Banks" (September 10, 2008)

• Executive Summary (PDF)
• Handouts (PDF)

Community Development Insights: Low-Income Housing Tax Credits - Affordable Housing Investment Opportunities for Banks (March 2014)
This edition of Community Developments Insights describes how LIHTCs are used to develop affordable rental housing and how banks can benefit from investing in LIHTC-financed projects. It describes the two approaches for investing in LIHTCs: direct investments in individual affordable housing projects and fund investments that have multiple projects managed by third parties. The report outlines risks and regulatory considerations of LIHTC investments and describes how these investments would be considered under the Community Reinvestment Act (CRA).

The New Markets Tax Credit (NMTC) Program was designed to leverage capital from investors to spur economic development in urban and rural low-income communities. Within the Treasury Department, the Community Development Financial Institutions Fund (CDFI Fund) and the Internal Revenue Service (through Section 45D of the Internal Revenue Code) jointly administer the program. The NMTC Program has become an important tool for promoting economic development and community revitalization strategies in low-income markets.

Federal Resources

Internal Revenue Service

• New Markets Tax Credit Guide
• New Markets Tax Credit Tax Regulation 26 CFR 1.45D-1

The US Department of the Treasury

Community Development Financial Institutions (CDFI) Fund
The Treasury Department's CDFI Fund, established by the Riegle Community Development and Regulatory Improvement Act of 1994, expands the capacity of financial institutions to provide credit, capital, and financial services to underserved populations and communities in the United States. The CDFI Fund is the administrator of the NMTC Program. The New Markets Tax Credit (NMTC) Program provides information on the program, including eligibility and application materials.

Industry Organizations and Professional Associations

CDFI Coalition
The CDFI Coalition represents community development financial institutions (CDFIs) nationwide. CDFIs often work in partnership with banks to develop innovative ways, including NMTCs, to deliver loans, investments, and financial services to distressed communities.

CohnReznick New Markets Tax Credit Resource Center
CohnReznick New Markets Tax Credit Resource Center contains an interactive mapping tool to determine NMTC eligibility, and other resources.

New Markets Tax Credit Coalition
The New Markets Tax Credit Coalition is a national membership organization that promotes increased economic activity in low income urban and rural communities through the New Markets Tax Credit Program. The New Markets Tax Credit Coalition carries out action-oriented research, policy review and analysis, technical assistance and lobbying in support of the New Markets Tax Credit.

Novogradac New Markets Tax Credit Resource Center
News, facts and figures, federal and state guidance, research and reports, a mapping tool and other resources on the NMTC Program.

Case Studies

The following case studies are examples of typical New Markets Tax Credit projects.

• Enterprise Community Investment - New Markets Tax Credit portfolio
• New Markets Tax Credit Coalition - Provides reports and case studies on various NMTC projects.
• New Markets Tax Credit Impacts - A case study from Durham, North Carolina.

OCC Resources

Community Developments Fact Sheet: New Markets Tax Credits (February 2016)

Community Developments Insights Report: New Markets Tax Credits - Unlocking Investment Potential (June 2013)
This publication examines the primary risks, benefits, and regulatory considerations associated with New Market Tax Credits (NMTCs). The report also discusses the ways in which bank investors have structured and managed these credits effectively. Banks have been active participants in the NMTC Program because of the ability to generate competitive economic returns, and the opportunities they present for positive CRA consideration.

Revitalizing Communities Using the Public Welfare Investment Authority Video
This brief video describes the Office of the Comptroller of the Currency's role in administering the Public Welfare Investment Authority and encouraging participation in the New Markets Tax Credit Program.

This resource guide provides easy access to information on national organizations and programs that encourage investment in renewable energy production. Use the resource guide to explore tax incentives and technical assistance sources for investing in renewable energy facilities. The information is organized under the following categories:

Federal and State Resources

• The U.S. Department of Agriculture offers a variety of rural development energy programs.
• The U.S. Department of Energy has numerous programs to promote energy efficiency. Information can be found at the following locations:
  • Energy-related tax credits
  • Renewable Energy
• The U.S. Department of Housing and Urban Development energy website describes HUD energy initiatives and policies.
• The U.S. Department of Treasury provides information about tax credit programs that promote investment in renewable energy manufacturing and production.
  • Energy Incentives for Businesses in the American Recovery and Reinvestment Act
• The U.S. Energy Information Administration offers statistical information and analysis regarding renewable energy.
  • Database of State Incentives for Renewables & Efficiency (DSIRE) is a comprehensive source of information on federal, state, local, and utility incentives that promote renewable energy and energy efficienc.y

Industry Organizations and Professional Associations

• American Solar Energy Society (ASES) is a trade association of solar professionals and advocates.
• American Wind Energy Association is a national trade association that represents the U.S. wind industry, including wind power and energy development, wind turbine manufacturing, component and service suppliers.
• Edison Electric Institute provides information about various energy efficiency and low-income energy assistance programs offered by utility companies.
• Geothermal Energy Association is a trade association composed of U.S. companies that support the expanded use of geothermal energy and are developing geothermal Resources worldwide for electrical power generation and direct-heat uses.
• Novogradac Renewable Energy Tax Credit Resource Center offers information on IRS rulings, legislation, studies and reports, and breaking news on Renewable Energy Tax Credits.
• Ocean Renewable Energy Coalition is a national trade association that promotes marine and hydrokinetic energy technologies from clean, renewable ocean resources. The organization embraces a wide range of renewable technologies, including wave, tidal, current, offshore wind, ocean thermal, marine biomass and other technologies that utilize renewable resources from oceans and tidal areas to produce electricity.
• Renewable Energy Markets Association represents organizations that sell, purchase, or promote renewable energy products.
• Solar Energy Industry Association is a national trade association that represents the U.S. solar energy industries.
• Solar Electric Power Alliance represents electric utilities, solar companies, and other companies with an interest in solar electricity.

Legislation and Regulation

• 26 USC Section 48, Legislation authorizing Investment Tax Credit for renewable energy facilities.
  • Form 3468, Investment Credit - IRS Form 3468 to claim Investment Tax Credit
  • IRS Overview of Advanced Energy Project Credit for Manufacturers
• 26 USC Section 45, Legislation authorizing Production Tax Credit from renewable energy sources.
  • General Instructions for Claiming Credit
• The Energy Improvement and Extension Act of 2008 (PDF) - Division B, Public Law 110-343, 122 STAT. 3807
• 1603 Program: Payments for Specified Energy Property in Lieu of Tax Credits
• Election of Investment Tax Credit in Lieu of Production Tax Credit - Coordination with Department of Treasury Grants for Specified Energy Property in Lieu of Tax Credits

OCC Resources

• OCC Community Developments Fact Sheet: Investing in Wind Energy Under the Public Welfare Investment Authority (January 2014)
• OCC Community Developments Fact Sheet: Public Welfare Investments in Solar Energy Facilities Using Renewable Energy Investment Tax Credit (January 2014)
• Community Developments Insights: Investing in Wind Energy Using the Public Welfare Investment Authority (PDF) (Fall 2013) - This issue examines how banks can be a source of financing for facilities that generate renewable wind energy.
• Community Developments Insights: Investing in Solar Energy Using the Public Welfare Investment Authority (PDF) (July 2011) - This issue highlights the innovative investments national banks have made in solar energy-producing facilities using their public welfare investment authority.