No. However, the credit can be transferred to an investor through the creation of a partnership or limited liability company.
Yes. The building must remain in service for a period of 5 years after completion by the same ownership group that rehabilitated the property.
Yes. The risk falls largely into two areas – real estate and tax compliance. Rutgers University studies show that a properly-structured transaction between competent parties carries extremely low risk to an investor.
In some cases, yes and in other cases, no. Some states mirror the federal program. Other states award credits via an application process. Furthermore, some states provide for the credits to be “certificated” and freely transferred between sellers and buyers.
No. A number of factors and variables enter into the cost or pricing of each credit that only competent professionals can address.
The federal program dates back to the 1970s in its earliest form and 1986 in its current form. The state programs vary in terms of legislative history.
There is a carryforward period of 20 years and a carryback period of 1 year.
Yes the credit in general can offset up to 75% of regular tax and alternative minimum tax liability in a given year.
The credit is received via an allocation reported in Schedule K-1 in the year the project is placed in service.
Principals of MPC have been involved in historic rehabilitation projects dating back to the early 1980’s.
For more information, contact Rick Chukas.