Friday, Eldredge & Clark, LLP advises clients in a variety of state and federal tax credit financing and incentive programs. We have extensive knowledge gained through many years of experience successfully closing transactions in tax credit programs such as New Markets Tax Credits (NMTC), Solar Renewable Energy Tax Credits (ITC), Historic Rehabilitation Tax Credits (HTC), Low-Income Housing Tax Credits (LIHTC) and Opportunity Zones (OZ).
Focused on Clients
The firm routinely represents Qualified Active Low-Income Community Businesses (QALICBs), investors, Community Development Entities (CDEs), lenders, developers, nonprofit organizations and businesses of all types to provide creative financing opportunities utilizing tax credit financing solutions.
Focused on Services
We work closely with clients to simplify complex tax credit financing structures to insure our clients have a clear understanding throughout every step of a transaction. The firm works closely with clients from the initial structuring of the transaction, through all phases of the transaction, and to a successful closing. We also offer advice to our clients on compliance issues post-closing. On applicable tax credit financing programs, we represent clients in unwinding the transaction at the conclusion of the tax credit compliance period. Throughout the project, we draft all necessary corporate, transactional, and loan documentation, represent clients on all recurring conference calls and meetings, coordinate, review and advise on necessary due diligence items, negotiate transaction terms with other transaction participants, and issue standard corporate, enforceability and tax opinions. We routinely advise clients on the following tax credit financing programs:
New Markets Tax Credits (NMTC) – NMTCs are available to qualified projects and qualified businesses located in qualified low-income census tracts. We represent QALICBs, CDEs, and investors in NMTC financing transactions, with a particular emphasis on representing QALICBs on the project side of the transaction. The firm has extensive experience representing projects throughout the United States, including medical clinics and hospitals, manufacturing facilities, grocery stores, retail chains, distribution facilities, mixed-use projects and educational institutions. We have represented clients to successfully close NMTC financing transactions utilizing various structures, including transactions with multiple CDEs and multiple investors, that are secured and unsecured, that combine other federal programs such as USDA, that are self-leveraged and source lending leveraged, which involve stacked or side-by-side state and federal allocations of NMTCs, and transactions that have twinned the use of NMTCs with renewable energy tax credits or historic rehabilitation tax credits. Over the years, the firm has had the opportunity to successfully close NMTC financing transactions involving most national investors, numerous local investors, and many community development entities throughout the United States. We also routinely work on NMTC financing transactions with most national accounting firms and consultants serving the NMTC industry. To make sure we are up-to-date on all industry changes, we regularly attend national industry NMTC conferences.
Renewable Energy Tax Credits (ITC) – ITCs are available to the owner and developer of solar renewable energy facilities. Our firm handles renewable energy tax credit financing transactions primarily in the solar industry and represent solar developers and investors, with a particular emphasis on representing solar developers. We have represented clients to successfully close ITC financing transactions utilizing most commonly accepted tax credit structures such as partnership flips and inverted leases, including ITC transactions that have been twinned with new markets tax credits and multi-project portfolio transactions.
Historic Rehabilitation Tax Credits (HTC) – HTCs are available to those who invest in the rehabilitation of historic buildings and structures. Our clients are primarily owners/developers, but we also represent investors as well. We have been successful in representing clients in HTC financing transactions combined with NMTC. The firm also has experience advising clients on state HTC programs.
Low-Income Housing Tax Credits (LIHTC) – LIHTCs are available to those who develop or rehabilitate affordable housing. We have extensive experience representing developers of affordable housing with respect to all aspects of LIHTC financing transactions.
Opportunity Zones (OZ) – Part of the Tax Cuts and Jobs Act of 2017, the OZ program is designed to offer investment and tax incentives to developers and investors that invest in lower income distressed areas. We work with clients to gain favorable treatment for taxation of capital gains and reduce costs for eligible projects.
Focused on our Team
Jay T. Taylor, a partner in the Real Estate/Commercial Transactions Practice Group, leads the firm’s Tax Credit Practice. Jay’s practice is focused heavily on commercial financing transactions and state and federal tax credit incentive products. Jay has extensive experience structuring and closing transactions involving NMTC, ITC, HTC, LIHTC and transactions involving conventional commercial/industrial lending.