Overview

Section 42 Low Income Housing Tax Credit (LIHTC) program is a true public-private partnership designed to encourage private developers to build high-quality family and senior residential communities. These high-quality communities are expensive to build and maintain. Developers are awarded tax credits which are allocated to equity investors.  The tax credits help reduce the investor’s tax liabilities, offset construction and maintenance costs while enabling the developer to offer affordable rental rates to working class families and seniors.

According to the National Association of Home Builders, tax credits significantly boost economic growth, expand the state and local tax base and create jobs for tradesmen, contractors and all businesses that serve and supply the construction industry. Annual LIHTC development activity supports approximately:

Federal tax credit programs are a powerful and prudent tool utilized by government to stimulate economic growth, create jobs and provide affordable housing.         

Federal Tax Credit Case Law

LIHTC Law: Section 42 of IRC
Case Law: Historic Boardwalk Hall, LLC v. IRS, 3rd Circuit

Affordable Equity Partners targets selective investments with the greatest return.

State Tax Credit Case Law

Virginia Historic Tax Credit Fund 2001, LP v. IRS 4th Circuit
Route 231, LLC v. IRS

Affordable Equity Partners and its affiliated companies have been working with the Historic Tax Credit Programs since 1998 in Missouri and 2002 in Georgia.

In many areas, beautiful historic structures have been abandoned or under-utilized because of the cost of updating and maintaining the buildings’ infrastructures. While many have lamented the gradual loss of our urban and architectural history, few have the resources to make changes.

The Missouri and Georgia Historic Tax Credit Programs enable developers and investors to play a significant role in the redevelopment of urban communities and neighborhoods.

References to Missouri State Statute further detail Missouri’s Historic Tax Credit Program:

• Missouri Revised Statute 253.550
• Missouri Revised Statute 253.557
• Missouri Revised Statute 253.559

References to Georgia State Statute further detail Georgia’s Historic Tax Credit Program:

• Georgia State Income Tax Credit Program for Rehabilitated Historic Property
• O.C.G.A. § 48-7-29.8 (until December 31,2021)
• O.C.G.A. § 48-7-29.8 (after December 31, 2021)

References to Oklahoma State Statute further detail Oklahoma’s Historic Tax Credit Program:

• Oklahoma Investment Tax Credits for Rehabilitation
• Oklahoma Statutes § 68-2357.41