A tax credit is a dollar-for-dollar tax reduction received from the federal government and/or a state government to incentivize investment in projects that provide positive social and economic benefits. Investors in tax credit projects are able to lower their effective tax rates, increase cash flow and maximize after-tax earnings.
Fallbrook has facilitated over Three Billion Dollars of tax credit transactions over the past three decades—making it one of the most trusted names in tax credits.
We have assisted hundreds of developers in successfully securing funding for projects that have revitalized communities, supported underserved populations and reinvigorated local economies.
TAX CREDIT PROGRAMS
TAX CREDIT PROGRAMS
Many states have created film and digital media tax credit programs to incentivize local production and have their economies receive the associated benefits. States typically provide a subsidy based on the amount of qualified expenditures. Almost all film tax credits are single-year transferable certificates for the tax year in which the in-state expenditures occur.
States offer brownfield cleanup tax credits for the restoration and redevelopment of contaminated industrial and commercial properties. Brownfield cleanup helps revitalize communities by rehabilitating blighted properties and stimulating economic growth. Almost all brownfield cleanup tax credits are provided as single-year transferable certificates.
Historic rehabilitation tax credit programs provide an incentive to preserve historic structures. The communities in which the rehabilitation occurs benefit through neighborhood revitalization, job growth, and additional property tax revenue. Tax credits can be claimed in the year the rehabilitation is completed and certified by the applicable preservation authority. Although the tax credits are typically earned in the year the project is placed in service, a few states distribute the tax credits over a longer period.
In an effort to reduce the country’s dependence on fossil fuels, state and federal governments offer tax incentives for renewable energy project development, equipment manufacture, and the implementation of energy efficiency technologies. These benefits are provided as tax credit streams ranging from one to ten years in length. Both federal and state credits may be utilized and together can cover as much as 55% of a project’s cost.
The New Markets Tax Credit Program was created as part of the Community Renewal Tax Relief Act of 2000. Taxpayers can receive a federal tax credit for making qualified business and real estate equity investments into qualified community development entities which create jobs and improve the lives of residents of low-income communities.
The Federal Low Income Housing Tax Credit was created in 1986 under The United States Tax Reform Act to help meet a critical affordable housing shortage by stimulating the production or rehabilitation of millions of affordable homes through federal tax credits. Several states also offer low income housing tax credits to further subsidize low income housing at a local level. This program provides billions of dollars of tax credits annually at both the state and federal level.
Federal and state tax benefits in return for voluntary permanent restrictions that conserve land. Investors purchase property then donate it to a qualified land trust. Some states offer additional tax credits to encourage conservation easement transactions.
Several states offer unique tax credit programs to encourage investment in programs or areas that would benefit from economic support. Please let us know if there are any other states or tax credit programs in which you are interested and we will provide you with the appropriate material.
For nearly 30 years, many of America’s largest corporations have trusted the principals of Fallbrook to advise them in transacting over three billion dollars of tax equity investments. Fallbrook’s state and federal tax credit team is actively engaged in federal and state transactions spanning the country.
Fallbrook has successfully completed the structuring and financing of over 500 tax credit related deals in over 20 states with a diverse range of investors. Fallbrook has numerous strategic alliances that help to establish Fallbrook as one of the most accomplished tax credit brokerage firms in the nation.