ATLANTA, GA (June 11, 2012) – State and federal tax credits are among the most powerful tools available to help businesses improve their bottom lines and help real estate developers raise cash needed for their projects. However, a huge majority of companies and developers don’t take full advantage of the credits. On this week’s “Commercial Real Estate Show,” companies and investors gain insight on the availability of and the ways to benefit from tax credits.
“I would say greater than 80 percent of companies don’t capture every tax credit opportunity” available to them, said guest David McMillian (top right photo), president of McMillian & Associates.
Depending on your location, tax credits are available for new hires, renewable energy projects, movie productions, small businesses that provide health insurance to their employees and companies that retrain their employees in new technologies and equipment, guests noted.
Businesses seeking to take advantage of tax credits benefit by the guidance of a specialist, in part because the credits can be obscure and the accompanying paperwork daunting,guests advised. “They are advertised. It really is a niche environment,” said Brett Weal, a senior manager with Reznick Group. “Get an expert upfront.”
Real estate developers can receive either federal or state tax credits for building low-income housing projects, restoring historic buildings, building in impoverished areas and developing old textile-mill sites, among other credits. The developers are then able to sell the credits to raise the equity needed to execute their projects.
The public, the developers and the taxpayers who buy the tax credits all benefit in the process, guests said. “Developers in this day and age need cash for their projects,” said Chris Rogers (top left photo) of Tax Credit Advisors. “They [the developers] tend to not need these credits themselves … There’s a market out there for these tax credits, [and the tax payers] put cash into the projects in exchange for an allocation of the credits.”
Developers can obtain more than one kind of credit for their projects, guests noted. Robert Lewis (middle right photo), a principal with Tax Credit Advisors, cited the example of one of his clients who “generated 45 percent of the project cost” by combining multiple types of tax credits on a single project.
The full show on tax credits is available for download at www.CREshow.com.
The next “Commercial Real Estate Show” will be available June 14 and will provide an update on the REIT market.
Contact:
Stephen Ursery
Wilbert News Strategies
E-mail: sursery@wnspr.com
Office: (404) 965-5026
Cell: (404) 405-2354
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