cherrytree group llc logo

Cherrytree Group LLC Blog

RSS Grab the Cherrytree Group Real Estate Blog feed

Get e-mail notifications of new blog posts! Enter email address below.


Delivered by FeedBurner

 

The Sale of Tax Credits is Taxable

Joseph Coupal - Monday, December 19, 2011
...by Warren Kirshenbaum

The sale of certain Massachusetts state tax credits from the original recipient to a third party creates a taxable event for both the Taxpayer and the Recipient. While the Memorandum only applies to Massachusetts state tax credits, the precedent that Chief Counsel relied upon could be applied to other state tax credit programs.
   
Massachusetts offers a number of state tax credits similar to those found throughout the United States, specifically, Brownfields Tax Credits, Motion Picture Tax Credits, Historic Rehabilitation Tax Credits, Low-Income Housing Tax Credits, and Medical Device Tax Credits.

In the Memorandum, the IRS found that the Taxpayer that qualifies for and receives the tax credit does not realize gross income.  Instead, for federal income tax purposes, the receipt of the tax credit itself should simply be treated as a reduction or potential reduction in the recipient’s state tax liability.  

However, in the event the tax credit is transferred to a third party for value, the Taxpayer must recognize a gain because the transaction is treated as a sale. The amount of the gain recognized by the Taxpayer is equal to the sale price of the tax credits, and because each of the nonrefundable Massachusetts tax credits qualifies as a “capital asset” the gain is deemed a capital gain.

For information and assistance on buying or selling Tax Credits, contact the Cherrytree Group.

Original article - Lexology


Recent Posts


Tags

wind venture capital The Transactional Law Group - MA contractors, Boston, MA foreign investors Brownfields Tax Credits, MA commercial tax credits, Fall River renewable energy certificates sydicator of tax credits multi-family construction Massachusetts gas station owners Commercial Real Estate Loan Amortization Periods partial equity participation new markets tax credits commercial tax credits renewable energy expensive to produce Commonwealth Solar Rebate Program investment into business commercial tax credit largest accidental marine oil spill commercial real estate Broad Medows Salt Marsh portability of tax credits alternate funding tax credits for gateway cities, New Bedford build green renewable energy incentives downturn monetizing your tax credits Brownfields Act, economically distressed areas, Massachusetts Brownfields Tax Credits, Massachusetts Contingency Plan, MGL Ch 21E, RAO, remedy operation status, renewable energy, sale of tax credits, tax advantaged development, tax credit syndication, tra alternative funding sources capital finance preservation of mills tax credits on brownsfields solar system investment tax credits real estate attorney raising capital, MA sale of a tax credit global energy demand HUD insured mortgages tax planning strategies NIMBY not in my back yard community development entity green energy BP Gas station owners tax incentive deals MGL Ch 21E outsourcing non-bank resources for capital funding commercial real estate owners Brownfields sites, MA tax incentives and credits american symphony orchestra community block grants thayer morgan interivew commercial residential properties multi-family housing, MA trash facility commercial tax credits, Lowell capital raising questions, MA landfill gas facility federal energy regulatory commission real estate deals biomass power financing business investment Massachusetts Contingency Plan economic slump historic and low income housing brownfields, MA investment objectives Historic rehabilitation tax credits, MA new markets tax credit program economic growth federal government tax credit sydication tax credit investments restoration projects 40B credited with spurring upwards of 80% new development cost of producing renewable energy brownfields laws destructive oil spill distressed asset investment fund new market SREC remedy operation status marine and hydrokinetic, solar wind tax credit private equity investments in solar energy financing solar installations credits real estate development solar power initiative solar energy development transfer of tax credits new markets american recovery and reinvestment act develop renewable energy systems solar energy properties commercial energy tax deductions energy production wholesale energy historic rehabilitation tax credit the difference between tax credits and tax deductions solar projects distressed asset investment energy efficient property MA commercial real estate lawyer Federal Historic Rehabilitation Tax Credit private equity' midterm elections motion picture tax credits investing in apartment projects, MA investors in renewable energy equity construction solar energy array projects economy multitude of renewable resources new markets investments Massachusetts tax credits investing in commercial real estate, Boston Housing Development Incentive Program Plymouth, MA solar power development gas station loss of income EB-5 Regional centers biodiesel NYC tax credits real estate investment trusts, Boston tax credit programs, New Bedford brownfields, CT fuel cells asset stripping tax advantages tax credit consultant small business loans deepwater horizon oil spill real estate, Boston real estate properties solar investment tax historic tax credit solar ITC low-income neighborhoods tax credit broker hydro electric power business LIHTCs real estate investment trusts energy efficient tax deductions private investments brownfields redevelopment, MA depressed and booming markets preservation of historic buildings investing in apartments, MA private sector investment monstrous oil spill new york pops negative environmental effect tax deductions commercial building tax deductions commercial buildings build a wind farm cleantech new market tax credit new energy technologies heat and power hydro energy production deduction for energy efficient buildings tax credits to help economy qualified energy conservation bonds commercial real estate investments The Cherrytree Group investing in commercial real estate CHAPA brownfields tax credit, CT EB-5 Green Card Program development of the renewable energy industry tenant representative brownfields redevelopment, CT NMTC historic building tax credit, New Bedford Austin traditional funding brownfields tax credit, MA brownfield redevelopment, CT loaning money to consumers capitalism solar renewable energy credits debt-service Business Financing Kirshenbaum Real Estate weak economy offshore wind expensive to produce wind power financial incentives to develop real estate in MA renewable energy program REIT investments solar energy production devastating environmental damage renewable energy development invest in real estate residential real estate San Jose cleantech capitals new normal Martha's Vineyard cherrytree group llc private equity offerings venture development capital MA tax deductions permitting procedure private equity offerings, ma Brownfields Act, MA invest in commercial real estate Massachusetts real estate strategy solar investment tax credit boycotting BP gas stations capital Housing Development Incentive Program, MA infrastructure investment tax credits foreign investment Massachusetts brownfields tax credit REIT private equity offerings Tax Credit buy real estate, MA environmental projects foreign capital construction jobs small business federal tax credits Louisianna American Recovery and Reinvestment Act of 2009 - Section 1603 equity investments Cape Cod tax incentives commercial real estate investment value-added services Kirshenbaum Law, Cherry Tree, LLC, Real Estate, MA examine tax credits Gulf Coast victimized office space renewable energy distressed asset investment fund, ma Quincy Broad Medows Salt Marsh wind power technology solar capacity market rate housing tax credit, MA San Francisco clean technology private equity, MA REIT industry QECBs energy tax credit Historic rehabilitation tax credits Cape Wind borrowing by small businesses EB-5 Brownfields programs solarize Massachusetts capital requirements renewable energy facility LIHTC REITs, Boston wind farm tax credit solar power solar energy markets real estate attorney, ma tax credit to spur redevelopment equity requirements renewable energy projects Chapter 40B explained business solar investment tax credit fuel cell initiatives green energy projects capital funding list of brownfields sites Massachusetts state tax credits clean energy development in Massachusetts real estate projects cleantech cities renewable energy tax credits energy companies methods of renewable energy production money lending independent gas station owners more control over financing costs Seattle commercial tax credit attorney investing in surface parking lots rownfields Act income tax credit solar facilities wholesale acquisitions tax credit syndication BP oil spill thayer morgan investments credit for income producing properties borrow money RAO Chapter 40B vote results renewable energy tax break Warren Kirshenbaum oil spill polluted sites tax credit, New Bedford large capital projects distressed assets business loans developing real estate, MA real estate investment, Boston economically distressed areas buy commercial real estate, MA commercial properties private sector investments expiring tax credits geothermal sustainable technology tax credits to fix up historic buildings visas for buying homes investing in parking lots real estate renewable energy credits SRECs urban redevelpment Summertime Economy in Boston obtaining capital invest real estate business asset commercial real estate attorney tax breaks small residential properties news commercial tax credits, New Bedford gasoline price fixing Brownfields credits finance sale of tax credits commercial real estate in MA Massachusetts Ballot Questions, Question 2 Explained secure capital Former Getty owners Boston solar energy banking economic development bill, MA historic preservation tax credit new market tax credits biomass facilities informational technology commercial tax credits, MA how REITs works free up capital sale of renewable energy credits real estate lawyer non-renewable energy sources solar farms solar initiatives wind energy credits renewable energy industry federal and state tax credits hedging transactions renewable resources community development REITS brownfields tax credits low income housing tax credits LIHTC tax credits invest in development projects Brownfields sites federal tax Credit tax-excempt bonds energy systems FERC economics of environmental projects low-income housing tax credits EPA brownfields grant money sources of funding real estate investments geothermal power RECs commercial leases capital line funding real estate lawyer, MA credit line funding declining property values brownfields solar pilot program investing in real estate in MA 1603 Grant energy tax credits business capital renewable energy jobs distressed asset sales recession workforce development rehabilitation developing real estate in MA wind farm development brownfields projects, MA tax advantaged development solar installations gasoline market manipulation wind subsidies building improvements distressed asset investing making money with commercial real estate Transactional Law Group brownfields tax credit Rhode Island community development financial institutions capped landfills massachusetts non-profit citizens housing and planning association green standards microturbines new housing developments developers, Boston, MA multi-family apartments 1603 Treasury Grant investing in surface lots laws of Brownfields RI Massachusetts Brownfields Tax Credits affordable housing Quincy, MA federal low income housing tax credit hydro power visas for imigrants Chicago

Archive

Disclaimer

This Blog is made available by the lawyer publisher for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and the Blog publisher. The Blog should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.