Adam Kirk presented on NMTCs and the renovation of the new Savannah Law School at their event Re-Integrating Spaces. His panel was titled Historical Perspectives in Modern Context.

1. Enhancing the Bundle of Sticks:
Implementing preservation goals
through the monetization of tax credits.
Date XX, 2013
September 20, 2014

4. The Rehabilitation Credit
• 10% of qualified rehabilitation expenditures for
non-historic structures.
• 20% of qualified rehabilitation expenditures for
certified historic structures (National Park Service).
Internal Revenue Code (IRC) Section 47(a)(1)-(2).
• Credit utilized the year the project is “placed in
service”. Compliance period 5 years.
• Qualified by National Park Service

5. The New Markets Tax Credit
• 39% of qualified equity investment in a Qualified Low Income
Community Business (QALICB). IRC Section 45.
• “Qualified active low-income community business” means,
basically, at least 50 percent of the total gross income of such
entity is derived from the active conduct of a qualified business
within any low-income community (census tracts).
• A qualified business is almost any business other than
residential real property and certain other prohibited businesses.
• Credit utilized 5% in years one through 3, 6% in years 4
through 7. Compliance period 7 years.
• Competitively allocated by CDFI Fund to CDEs who apply for credits
based on projections and merit.

6. Low Income Housing Tax Credit
• 70% of Qualified Basis in a Qualified Low Income
Building. 40% of units reserved for persons with 60%
or less of Area Median Income OR 20% of units
reserved for persons with 50% or less of Area Median
Income. Rents restricted – essentially 30% of income.
• Credit utilized pro rata over 10 years. Compliance
period 15 years. Certain restrictions for 30.
• Competitively allocated by State Housing Agencies (in Georgia,
the Department of Community Affairs of the Georgia Housing
and Finance Authority).

8. State Historic Credits
Retrieved from: http://www.novoco.com/historic/htc/state_programs.php

10. Structures

11. Structures

12. Structures

13. Benefits of private investment structuring
• Standards set by government policymakers.
• Preservation performed by profit oriented
developers who must demonstrate viability
to procure investment.
• Compliance monitored by professional
investors whose primary motivation is
compliance (avoidance of recapture).

14. Results?
• 2013: National Park Service approved 1,155
proposed projects representing $6.73 billion
• Over $69 billion since 1976
• 2002-2011: over $44.5 billion in investment in
NMTC
• 1987-2011: $60 billion in private investment in
LIHTC

19. Adam Kirk
Section Divider Heading
AKirk@huntermaclean.com
912-236-0261