X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-A bill positively affecting commercial real estate and is now law. HR 4577, now public law 106-554, is designed to encourage investments in economically distressed areas. It passed Congress on Dec. 15 and was signed into law last week. Providing $31.5 billion tax relief to the apartment industry, housing related issues in this law include a low-income housing credit, a private activity bond cap, brownfields clean-up relief, and community renewal provisions.

The low-income housing tax credit increases from the current level of $1.25 per capita to $1.50 in 2001, and to $1.75 in 2002. It also indexes it for inflation starting in 2003. The bill provides, for the first time, a minimum LIHTC allocation for small states, assuring $2 million in 2001 and 2002 and indexing that amount for inflation beginning in 2003, according to information released by the National Multi-Housing Council.

The Private Activity Bond Cap accelerates and already-scheduled increase in the state volume limits on tax-exempt private activity bonds to the greater of $62.50 per resident or $187 million in 2001, $75 per resident or $225 million in 2002. It also indexes the program for inflation starting in 2003.

The brownfields legislation extends until Jan. 1, 2004, the current law allowing the immediate expensing of brownfields clean-up costs. Brownfields are vacant, abandoned, or underutilized commercial and industrial properties where environmental contamination challenges redevelopment or utilization. The law also greatly expands the number of eligible sites by eliminating the requirement that it be located in a federal empowerment zone.

The law also provides various tax incentives for 40 renewal communities starting July 1, 2001 through Dec. 31, 2009. Among other things, designated communities will be eligible for a 15% wage credit for the first $10,000 of wages paid to employees who live and work in the renewal community, and additional $35,000 of Section 179 expensing for qualified renewal property, extension of the work opportunity tax credit for hiring youth in renewal communities, and a zero capital gains tax on sales of qualified community assets acquired after Dec. 31, 2001 and held more than five years.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.