Spring 2012 issue of Horizons

Real Estate – continued

Tax Exempt Dividends & Abuse Protections A third modification would allow real estate investment trusts (REITs) investing in LIHTC to designate a portion of the dividends they distribute to shareholders as tax- exempt. And finally, the fourth change would require LIHTC projects to provide appropriate protections for victims of actual or threatened domestic violence. Long-term use agreements first executed or modified 30 days or later after the date of enactment would have to contain protections comparable to those mandated by the Violence Against Women’s Act for affordable housing supported by various federal programs. Other Tax Credit Programs Regarding other tax credit programs, there is a proposal that calls for an extension of the New Markets Tax Credit (NMTC) for one year through calendar 2012; $5 billion in additional allocation authority for 2012; and permits NMTC investments to permanently offset the federal alternative minimum tax liability. The budget also proposes extending the production and investment tax credits for wind energy facilities placed in service before 2014, as well as the Section 1603 cash grant program for renewable energy projects placed in service before 2014, and the Section 1603 cash grant program for renewable energy projects placed in service or beginning construction in 2012. Finally, the budget provides for: • Renewing and making permanent the Build America Bond program with increased eligible uses of these bonds • Establishing 20 new “growth zones” around the country that would qualify for certain tax incentives

RubinBrown Partner Appointed To AHTCC Congratulations to Bryan Keller who was appointed to the Board of Directors for the Affordable Housing Tax Credit Coalition (AHTCC). The AHTCC, a national, not-for-profit headquartered in Washington, D.C., is comprised of a group of leading developers, syndicators, lenders, nonprofit groups, public agencies and others concerned with the low-income housing tax credit and plays a major role in assuring the continuance of the low-income housing tax credit. AHTCC works year round to take a leading role in coordinating the efforts of many concerned groups and individuals, both on Capitol Hill and throughout the country. AHTCC represents the interests of the tax credit community before groups which effectively have regulatory control over the program including the Treasury, IRS, FASB, and the National Council of State Housing Agencies.

For more information: www.taxcreditcoalition.org

• Taxing “carried interest” as ordinary income • Converting the Section 179D tax deduction for commercial building energy efficiency improvements to a tax credit • Modifying certain tax-exempt bond rules

For more information: www.whitehouse.gov/omb/budget

Raise Your Expectations

53