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Real Estate Investment Incentives

Tax credits are an effective incentive to mitigate some of the costs associated with real estate investment and development activities. The federal tax credits outlined here can be layered with a variety of state and local incentives. Each of these incentives involves complex financing and investment structures that require specialized care for successful execution. Our real estate credits and incentives specialists have extensive experience with all facets of real estate tax credits and incentives.

Rehabilitation tax credit
If you plan to own or invest in a qualifying rehabilitation project, our team of specialists can deliver additional value to your project. We can:

  • Determine eligible costs
  • Ensure compliance with complex regulatory requirements
  • Assess the usability of tax credits
  • Establish tax equity investment structures to monetize the tax credits in order to realize their full economic benefit 
  • Prepare financial projections
  • Prepare cost certifications
  • Develop exit strategies
  • Provide independent fairness opinions for investors or lenders on projects structured by another firm

Low Income Housing Tax Credit
The Low Income Housing Tax Credit (LIHTC) provides affordable housing developments with substantial financial resources over a 10-year period. Our LIHTC professionals have experience providing audit, tax and consulting services to developers, investors, intermediaries, state housing finance authorities and local public housing agencies. Our LIHTC team can:

  • Prepare financial projections of complex financing arrangements
  • Provide audit and tax compliance services
  • Perform due diligence and provide application assistance 
  • Provide independent fairness opinions for investors or lenders on projects structured by another firm

New Markets Tax Credits
The New Markets Tax Credit (NMTC) infuses investment dollars into low-income communities with poor access to capital. Through a competitive process, the Community Development Financial Institutions Fund awards tax credit allocations to community development entities. These credits can be used by real estate developers to close the funding gap on commercial, mixed use or community developments, or by operating business to acquire, rehabilitate or expand facilities and operations.

The NMTC can be complex to obtain and properly monetize. To assist businesses with these transactions, our team can:

  • Determine eligibility
  • Prepare financial projections
  • Investigate alternative financing structures to maximize returns
  • Develop exit strategies
  • Perform due diligence for investors and syndicators

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UPCOMING RSM TAX EVENTS

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2016 Fall tax summit series

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Business growth: Workforce tax considerations

  • January 20, 2016