Economic Incentive Programs
We help our clients navigate the tricky waters of various tax credit programs.
The federal government’s New Markets Tax Credit Program was created almost a decade ago. Its goal is to encourage economic development in low-income areas by use of capital from investors, who benefit from the tax credits and also potentially high returns on their investments. We are one of the few New Jersey law firms with experience in assisting investors and property owners to traverse the complex business models and documents involved in the complex “New Market” transactions.
We help clients realize economic development benefits by use of various Economic Incentive Programs such as: real estate tax abatements, also known as payment in lieu of taxes (PILOTS), tax incentive financing (TIFs), revenue allocation districts (RADs), redevelopment area bonds (RABs), urban enterprise zone (UEZ) sales tax and related incentives, “green” building and related reductions in energy cost, tax-exempt bond financing and procurement of governmental and other loans and grants.
The Federal Low Income Housing Tax Credit Program enjoys the reputation of being the most successful federal housing program in history. The credit, a dollar for dollar reduction in federal tax liability, acts as a catalyst to attract private investment into the historically underserved affordable housing market. The additional capital mitigates the debt burden incurred in the construction and rehabilitation development process. Consequently, less rental income is necessary for operations.
The EB-5 Visa provides a method for eligible Immigrant Investors to obtain United States visas as a path to permanent residence. Under the EB-5 Program, an international investor will receive a visa if he or she invests in a venture that will eventually employ at least 10 American workers, directly or indirectly.
An income tax credit is available for the rehabilitation of historic, income-producing buildings that are determined to be “certified historic structures.” For more than three decades, the Historic Tax Credit (HTC) has successfully implemented a national policy of preserving our historic resources. It is the most significant investment the federal government makes toward the preservation of historic buildings.