Need financing for a new project? Let tax credits come to the rescue
Abstract: When launching a new project, it might be difficult for a developer with high loan-to-value ratios to secure financing from lenders. But on the right project, some tax credits may generate the equity needed to bridge the gap. This article looks at low-income housing tax credits, rehabilitation tax credits, and the new markets tax credit. A sidebar discusses a new grant program under which the Treasury Department makes payments for “specified energy property” in lieu of certain tax credits.