Tax Credit Finance

The Firm’s Tax Credit Finance Practice assists clients in all aspects of financing projects subsidized with federal and state tax credits. The depth and breadth of our knowledge enables us to identify and structure transactions to maximize the benefits to our clients from tax credit financing provided by low-income housing tax credits (“LIHTCs”), new markets tax credits (“NMTCs”), historic rehabilitation tax credits (“HRTCs”), renewable energy credits and other credit programs. We assist our clients not only in planning, structuring and closing tax credit financing transactions, but in all other aspects of the ownership and operation of a project raised by the increasingly complex aspects of tax credit financing.

Low-Income Housing Tax Credits - LIHTCs

We have extensive experience representing all participants in the affordable industry including: developers (both for profit and not-for-profit); syndicators of the federal LIHTCs and state credits such as the Georgia LIHTC; public housing authorities; lenders; and direct investors/end users of the LIHTCs. Our representations include structuring and closing transactions throughout the country in urban, suburban and rural locations. We have experience with all types of LIHTC projects, including LIHTC-financing combined with various other subsidized debt and rent subsidy programs. We have assisted clients with acquisitions/dispositions of existing LIHTC projects/portfolios, as well as offerings of interests in LIHTC funds. We have been actively involved in addressing the various challenges raised by the changes in the LIHTC program for over its 25+ year existence. The Firm’s Affordable Housing Practice is capable of assisting with all aspects of transactions involving LIHTCs.

New Markets Tax Credits – NMTCs

AGG has been active in the NMTC arena since the inception of the program in 2000. We represent community development entities (CDEs) in all aspects of the NMTC program, including formation and qualification for CDE status; application for and obtaining allocations of NMTC authority from the Treasury Department’s CDFI Fund; structuring, negotiating and closing qualified equity investments in CDEs; and loans/investments by CDEs of such NMTC-subsidized funds in projects/businesses. We also represent project sponsors/developers/business owners throughout the country in obtaining NMTC-subsidized loans/investments for a variety of projects including healthcare facilities; for-sale residential property; museums; community service facilities; mixed-use developments and hotel and banquet facilities.; Our knowledge of the relevant rules and practical experience in structuring transactions and dealing with industry participants enable us to efficiently identify and resolve the unique issues that arise in NMTC transactions and maximize the benefits to our clients.

Historic Rehabilitation Tax Credits

AGG has represented both developers and investors in historic preservation projects that qualify for HRTCs. We have practical experience in all types of transactions and structures, including a variety of master and pass through lease structures. We are very familiar with transactions/structures that combine HRTCs with either LIHTCs or NMTCs and have closed a variety of such transactions.

Other State Tax Credits

In addition to our experience with state LIHTCs referenced above, AGG is experienced in other state tax credit transactions. We have represented production companies and otouoher entities qualifying for state Entertainment Credits in qualifying for and monetizing those credits. Our detailed knowledge of the issues associated with whether a state tax credit is treated as an allocated credit or an intangible property/certificated credit for federal income tax purposes permits us to assist clients involved in all types of state credit transactions in structuring to address those federal income tax issues.

Renewable Energy Credits

In tandem with our Renewable and Alternative Energy Practice, AGG’s tax credit practice also involves advising clients on both federal and state renewable energy credits, including the monetization program and other changes enacted as part of ARRA 2009.