Spencer Fane LLP Logo

Tax Credit Finance and Opportunity Zones

Tax Credits Header Image

The team of attorneys in the Spencer Fane Tax Credit Finance and Opportunity Zones group regularly helps developers, lenders, syndicators, and investors manage the complex issues arising in Historic Rehabilitation Tax Credits, Low Income Housing Tax Credits, New Markets Tax Credits, and Opportunity Zones, as well as any other development incentives. Spencer Fane is here to provide guidance on all aspects of the deal fostering a transaction that will be beneficial to our client’s development project and ensuring an efficient closing.

Scope of Work –

The number of available development incentives and tax credit programs continue to grow, as does the complexity of these transactions. The attorneys at Spencer Fane are here to help you make a difference by guiding you through the complexities of these projects. We recognize the unique needs of each client, and tailor our services to meet your specific goals. Our team can provide specialized guidance through:

  • Thoughtful structuring of each unique transaction;
  • Developing the necessary legal documentation for the transaction;
  • Providing any post-closing asset management advice that may arise;
  • Using our relationships to connect developers, lenders, syndicators, and investors; and
  • Obtaining any and all available incentives.

Who we work with –

Our team of experienced attorneys can work with developers, lenders, syndicators, and investors that are attempting to tackle the complexities of tax credit and development incentive programs. We work with:

  • Organizations who improve communities, invest in new markets, and those develop or invest in any kind of real property;
  • For-Profit and Not-for-Profit organizations who work with affordable housing and tax credit financing;
  • National and regional developers, investors, syndicators, and lenders along with multiple public-private partnerships.
  • Community Development Financial Institutions and Community Development Entities
  • Qualified Opportunity Funds

Specific Areas of Experience –

Opportunity Zones

A major benefit to real estate developers and investors from the Tax Cuts and Jobs Act enacted in December 2017 is the creation of Opportunity Zones. The Act allows private investors to achieve a tax deferral and reduction of capital gains from the sale of property, when those capital gains are invested in property in a Qualified Opportunity Zone (QOZ). The goal of the Act is to draw long-term investments to low-income communities across the nation.

Qualified Opportunity Zones have been designated in each state, and are generally in census tracts where median household income is less than 80% of the state’s average. View an interactive map of those census tracts here.

Although this incentive program is relatively new, Spencer Fane Tax Credit Finance attorneys are well-versed in all aspects of Opportunity Zones, and can guide clients through the development of a property in a QOZ, investment in a Qualified Opportunity Fund (QOF), and all the complexities involved in the investment necessary to maximize tax benefits. 

Historic Rehabilitation Tax Credits (HTC) – Federal & State

Federal and State HTC programs have played a major role in the redevelopment of historic landmark properties throughout the United States. And frequently, these projects can be combined with other tax credits, such as low to moderate income housing tax credits and new markets tax credits to help maximize the return on your investment.

We are experienced in negotiating, structuring, documenting, and closing HTC transactions, and are knowledgeable about state and federal compliance issues and administrative requirements. Our experienced teams stays informed and are well recognized in the industry in HTC transactions, often speaking at HTC related events.

Low Income Housing Tax Credit (LIHTC)

The Low-Income Housing Tax Credit is the primary federal program designed to encourage the production of affordable rental housing for deserving low-income households.

Our team is comprised of both real estate and tax attorneys that are seasoned and knowledgeable in identifying and understating regulatory compliance issues and developing sophisticated solutions that maximize client value in all aspects of affordable and multifamily housing transactions.

New Market Tax Credits (NMTC)

The new market tax credit program was created to encourage the development of undercapitalized areas by attracting private investors with a federal tax credit. This credit allows the investor to breathe new life into distressed areas suffering from low property values.

Spencer Fane attorneys can assist you in maneuvering through the complexities of these tax credits to ensure you are getting the most from the transaction that you can.