WASHINGTON, DC—The US Treasury Departmentannounced the 2014 round of New Market Tax Credits on Monday,awarding more than $3.5 billion in tax creditallocation authority to 76 organizations across the country.
This program is viewed as a credible -- if not cumbersome – formof alternative finance for the real estate community. However theallocation of credits devoted to real estate projects began toslide in the 2013 round – a trend that continues in this round,says Michael Sanders, partner at BlankRome and lead partner of the firm's Washington D.C. taxgroup.
"It is notable that approximately 74% of the NMTC investmentproceeds will be directed to finance and support loans to -- orinvestments in -- operating businesses," he tellsGlobeSt.com. Only 26% will be used to finance and supportreal estate projects. "Many of the deals in the past in qualifiedcensus tracts have been real estate oriented," he says.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
