State Incentives Crucial to Success of Community Development

July 2, 2019
ESG Research

Published by Michael Novogradac

State (and local) tax incentives play an often underappreciated role in the success of federal tax incentives.

The low-income housing tax credit (LIHTC), new markets tax credit (NMTC), historic tax credit (HTC), renewable energy investment tax credit (ITC) and production tax credit (PTC), and opportunity zones (OZ) incentive are all part of the federal tax code, but state incentives to complement them make a significant difference.

This issue of the Novogradac Journal of Tax Credits highlights various state-level tax incentives and how they interact with the federal versions. Two things are obvious: State tax incentives are important and certain types are more successful.

How state tax incentives are structured varies widely. Many states have incentives that largely mimic the federal version (especially in the cases of the LIHTC and HTC), while others are more targeted, such as to specific types of businesses, geographic areas, or demographic groups. Some states embrace tax-based incentives for community development, others are averse to using the tax code to incentivize such activities.

State tax incentives are important–and it’s worth looking at the big picture of what states are doing, what works and how different states are adapting. Most importantly, it’s worth examining what works best when it comes to state-level incentives for affordable housing, community development, historic preservation and renewable energy.

Read more about why state tax incentives matter.

Related Posts

New Incentive in Georgia Creates Solution for State Tax Deduction Limitation

New Incentive in Georgia Creates Solution for State Tax Deduction Limitation

By Ryan Degnan, Senior Financial Operations Analyst Georgia legislators have created a new incentive that can reduce federal tax liability. Georgia taxpayers can now benefit from an elective entity-level tax […]

Read More

Perspective and Insights Research

CLIMATE RESILIENCE Cardinal Renewables Case Study

CLIMATE RESILIENCE Cardinal Renewables Case Study

Carlyle’s 2020 Impact Report Electricity generation is one of the largest sources of global greenhouse gas emissions, accounting for approximately 28% of U.S. emissions alone – almost two-thirds of our […]

Read More

Renewable Energy Research

ACORE Launches New Program to “Accelerate” DEI Within the Renewable Sector

ACORE Launches New Program to “Accelerate” DEI Within the Renewable Sector

The Accelerate membership program is made possible by founding support from Amazon Web Services and Berkshire Hathaway Energy Foundation, and is sponsored by BayWa r.e. and Monarch Private Capital […]

Read More

Company Announcements ESG Renewable Energy

See More News

Contact us for more information about ESG Investing, state and federal tax credits.