Looking for Tax / legal entity attorney for Historic tax credits

[Rich Hupper]

Hi

I am looking for an attorney familiar with setting up partnerships to monetize historic tax credits on the state and federal levels. 

Please pm me.

[Rich Hupper]

@Jon Fletcher

So I was able to find some knowledgeable people on this and trust me there are not a lot. But basically the state credits are easily monetized. The value of this historic tax credit is up to 20% of the qualified rehab expenditures. So 500k you can get between 10% to 20% depending on how much the state has left in the fund for that allocation period. You can sell these tax credits before you are awarded them however you will take a hit if you sell them before the project is done. Lets say you are getting 20% of 500k, 100k. And you want to sell the tax credits before the project is done. The investor will be taking a risk, so they will only give you 50 60 70 cents on the dollar. But if you wait and sell the credits after the project is done the investor will pay closer to face value. Its a more certain are getting the credits from the state. I believe credits are only awarded once the project is finished. 

The federal credits are a different story. They are a guaranteed 20% but you need to broker them with the proper legal documentation to a limited partner. Unlike the state you do not get a certificate for them. I believe they are securitized in the entity which owns the project and then transferred to members of that entity. The value of the tax credit is 20% of the total qualified rehab expenditures. The buyer of these credits pays a fraction of that if bought at the beginning on the project and close to face value if the project is complete or close to completion because there is less risk. 

Doing any of this requires working with consultants who are very familiar with the entire process. It is a highly specialized endeavor.  You can always try to do it on your own.