The Port Volume Increase Tax Credit provides a tax incentive for certain companies that use Virginia port facilities. This credit may be claimed by taxpayers that are engaged in the manufacturing of goods or the distribution of goods as well as agricultural and mineral and gas entities.  Any of these entities which increase their port cargo volume by a minimum of 5 percent in a qualifying calendar year can receive a $50 credit against the tax levied for each 20-foot equivalent unit or “TEU” above their base year port cargo volume.

The program awards $3.2 million tax credits each calendar year and allots up to $250,000 per qualifying taxpayer.  However, if on March 15 of each year, the $3.2 million has not been fully allocated, then those taxpayers who have been allocated tax credits for the prior year shall be allowed a pro rata share of the remaining allocated tax credits. In such a case, a qualifying taxpayer may receive an amount greater than $250,000.

Transfer of Tax Credits

Any taxpayer which has been approved by the Virginia Port Authority and has received an allocation of tax credits is eligible to transfer credits to another taxpayer if it cannot use the credits themselves.  The transfer has to take place within one year from the date the original taxpayer received an allocation of credits.  A taxpayer may transfer a portion or all of the credits to one or more taxpayers. These credits can also be carried forward for 5 years or until the total amount of the credit has been claimed, whichever comes first.

For information on how to transfer your Port Volume Increase Tax Credits, or to purchase such tax credits, please contact Sue Ellyn Idelson at (978) 793-9574 or SIdelson@ClocktowerTC.com.

After the White House’s initial draft of the Build Back Better (BBB) legislation excluded provisions to boost resources to build and preserve affordable housing, the recent version that passed through the House of Representatives now includes key provisions to enhance low-income housing resources.

The latest package calls for a post-inflation 10% increase in the total 9% LIHTC allocation cap annually each year from 2022-2024.  This would provide an influx of 9% LIHTCs to housing authorities that have faced increasingly competitive award rounds.  In addition, an amendment is included to reduce the tax-exempt bond financing test down from 50% to 25%, for the period 2022-2026, which will enable more projects to receive 4% tax credits and make these developments feasible.  Together, these provisions would boost the total amount of both 4% and 9% tax credits for developers to use to foster the construction of more affordable housing units at a time in which housing is becoming increasingly harder to access for the most vulnerable populations.

The bill passed a vote in the House of Representatives after House Speaker Nancy Pelosi brought the bill to a vote on Friday, November 18^th, which puts the bill on track to be approved in the coming weeks, boosting the supply of Federal Credits in 2022 and beyond.

Clocktower Tax Credits, LLC remains ready to assist all developer clients with up-to-date information on the policy changes to the LIHTC programs and how they dovetail with the financial planning of any specific project.  If there are any questions or similar projects seeking a tax credit equity source for an ambitious development, please call Jeff Jacobson at (978) 823-0200, or email him at JJacobson@ClocktowerTC.com.

The staff at Clocktower Tax Credits is excited to be traveling for business and back in their offices under a hybrid model during the current COVID-19 restrictions.  After being fully remote for 16 months, the staff began a one-day-a-week, in-office mode for the remainder of 2021.  Our associates are also traveling, as highlighted by our recent attendance at project ribbon-cutting ceremonies in Chicago, Illinois, and Holyoke, Massachusetts.

“It was amazing and weird to be back shaking hands and handing out business cards,” said President Jeff Jacobson about its recent celebration of the opening of 162 units of beautifully renovated affordable rental homes at Lyman Terrace.  “But our mission, and that of The Community Builders, has not missed a beat.  It just took a few months longer to get there.  And after the ten-year development process finally came to fruition, the short delay and the scramble for building materials seem like small bumps along the long road to success.”

In Chicago, Acquisitions Associate David Curtis accepted Mercy Housing Lakefront’s “Wintrust Partners in Innovation” Award for Clocktower’s participation in the development of the Carlton Apartments.  The event was also a hybrid, with state and local officials attending in person, and the event live-streamed to an audience of proud project consultants, financiers, agency officials, and community residents.  This was David’s fourth trip to the Midwest recently, where Clocktower has established a strong presence in the Low-Income Housing and Historic Rehabilitation Tax Credit market.

These public events represent examples of Clocktower’s re-engagement with our friends and clients in the tax credit industry.  Acquisitions Associate Sue Ellyn Idelson is participating in the hybrid annual conference of the Florida Brownfields Association, presenting on a panel discussing Florida Tax Credits in a session on “Recognizing Rehabilitation Resources in Your Real Estate” in a Zoom-only Fall meeting, and participating in person in the follow-up session to be held this Spring in Pensacola.  Sue Ellyn worked this Fall with a program-record 48 separate awardees of Florida Voluntary Cleanup Tax Credits (VCTCs) in assisting them in selling their credits.  The takeaway for our clients is that Clocktower has worked, is working, and will continue to work tirelessly to support them in all aspects of their Tax Credit needs.

To schedule a meeting or site visit with a Clocktower associate, or a phone call or Zoom session, please call Jeff Jacobson at (978) 823-0200, or email him at JJacobson@ClocktowerTC.com.

Lyman Terrace Phase II is the culmination of a complete renovation of the oldest public housing property in the center of downtown Holyoke, Massachusetts.  Located a block from City Hall, the Holyoke Canal Walk and many stores, restaurants and parks, this ideal location was one of the features that the community cherished and fought to preserve when the buildings were slated for demolition by the Holyoke Housing Authority (HHA).  The then-Mayor, Alex Morse, intervened and asked HUD to suspend the HHA’s application for demolition. With the help of the Mayor and the formation of a partnership between HHA, the Massachusetts Housing Partnership, and the Massachusetts Department of Housing and Community Development, these organizations worked with the community to create a

vision and funding to preserve the property.  The Community Builders (TCB) was selected as the master developer in 2013 and received over $3 million in low-income housing tax credits as well as additional funding and grants to redevelop the site in two phases. The first phase included the development of 88 affordable rental units and a community building, while the second phase added 72 additional units and two playgrounds that were completed in June 2021.

TCB’s architects led a redesign of the buildings by adding extensions to the flat brick facades that extended each unit with new kitchens, baths and laundry areas. These extensions help increase the square footage of each unit that allowed for a dining room adjacent to the living room, much appreciated by the tenants who were able to move back to their own units or similar ones.

A wonderful picture of handprints labeled ‘Future’ created by hands from the community hangs in the community room that is accessed by the resident children who use the room after school for studying and activities.  Along with a community room, the renovation provides a computer lab and a community garden with moveable tables with a view of City Hall’s spire a short block away.

Congratulations to the entire TCB team and partners who not only preserved Lyman Terrace but elevated the buildings and the surrounding streetscape into a place that the community and residents can be truly proud of.  Clocktower Taz Credits was honored to assist by providing the state tax credit equity required to facilitate the redevelopment.  If you need assistance on your project seeking tax credit equity, please contact Sue Ellyn Idelson at (978) 793-9574 or SIdelson@ClocktowerTC.com.

Mercy Housing Lakefront has won the Polk Brothers Foundation Affordable Rental Housing Preservation Award in the most recent round of the Chicago Neighborhood Development Awards!  The project received recognition for its innovative rehabilitation of the Miriam Apartments project in the Uptown neighborhood of Chicago.  The development was completed in 2020, and seeks to assist severely low-income residents of the area, with virtually all having experienced homelessness in their lives.

The Mercy team redesigned the space with input from the existing tenants, retrofitting the building to accommodate 66 studio apartments.  Each unit has its own kitchen, bathroom, and heat/air-conditioning.  The construction effort was recognized for its vital role in preserving housing for at-risk Chicagoans while maintaining its historic footprint, being able to qualify for and utilize historic tax credits in addition to low-income housing resources.

A big congratulations to the entire Mercy team for well-deserved recognition, and Clocktower was proud to assist by providing the state tax credit equity component to help facilitate the rehabilitation.  If you have any questions on how this was accomplished, or have similar projects seeking a tax credit equity source for an ambitious development, please reach out to Clocktower’s Midwest associate, David Curtis at (978) 440-0742 or DCurtis@ClocktowerTC.com.