New U.S. tax law lessens federal historic tax credit, putting projects at risk

A federal tax incentive that “has helped revive more than 42,000 buildings” and “yielded about $30 billion in federal tax receipts” was “eroded” by the new U.S. tax law that President Donald Trump signed in December, Fox Business reports. The federal historic tax credit “provides reimbursement for 20% of certain costs” for renovations of historic buildings, but the tax-law changes mean the “payback is now spread over five years instead of one,” reducing its value to developers, according to the article. In Dayton, developer Cross Street Partners “rushed to complete long-term leases” on a project to “overhaul a long-vacant collection of buildings known as the Dayton Arcade” before the change took effect after the end of 2017. Senior development director David Williams said “the weakened version [of the incentive] could have threatened a carefully constructed financing plan that includes multiple tax incentives.” For more, read the full article

Federal Updates, Financial Incentives, Legal Developments

Conference agreement on tax reform: Private activity bonds, stadium bonds spared; Advance refundings and tax credit bonds axed

The Tax Cuts and Jobs Act (TCJA) was released on December 15, 2017. The Committee of Conference chose not to follow the House’s repeal of authorization for private activity bonds — a financing vehicle used to finance 501(c)(3) institutions, such as private universities and hospitals, as well as other projects, such as low-to-moderate income housing. Additionally, the prohibition on the use of tax exempt bonds for professional stadium financing was, likewise, not included in the TCJA, preserving that option for governmental issuers. Read more >>

Federal Updates, Financial Incentives, Legal Developments

Ohio legislature considers expansion of broadband service for underserved areas

Internet access has become a vital part of our everyday way of life. The ability to access the internet is critical for job searching, conducting government business, shopping, accessing important medical and financial information, and all levels of education. However, there are approximately 2.5 million Ohioans who lack access to reliable broadband service. In addition, nearly 90,000 businesses in Ohio do not have access to broadband internet. A recent Ohio State University study indicates that these underserved populations largely live in less populated rural regions where it is cost prohibitive for internet service providers to extend service. Read more >>

Legal Developments, Regional Updates, State Updates

Tax Reform’s Restrictions on Municipal Bonds

In the early morning hours of Saturday, December 2, 2017, the United States Senate, by a vote of 51-49, approved its version of H.R. 1, the Tax Cuts and Jobs Act of 2017, commonly referred to as the Senate's tax bill. The Senate bill, unlike the House's version, does not repeal private activity bonds. However, the Senate bill contains the repeal of the authorization for advance refundings that first appeared in the Chairman's Mark. The Senate and House are expected to attempt to reconcile the two versions this week in order to produce a single piece of legislation that must pass both chambers of Congress before finding its way to the desk of President. Read more >>

 

Federal Updates, Legal Developments