Tax Credit & Alternative Financing
Baird Holm LLP’s multidisciplinary team of attorneys in its tax credit & alternative finance group provides our clients with a comprehensive understanding and practical application of all types of tax credits that are utilized to finance real estate and energy transactions. We have the expertise in real estate, finance, taxation, corporate and energy law to structure and execute tax credit transactions.
Baird Holm attorneys are skilled and experienced in transactions involving federal and state historic rehabilitation tax credits, federal and state new markets tax credits, federal and state low-income housing tax credits, renewable energy tax credits, and federal grant programs. We provide a full range of services from structuring transactions, to syndication and financing, to governmental approvals, to tax advice and tax opinions. Our attorneys also counsel clients regarding federal and state incentive programs, including the Nebraska Advantage Act and the Community-Based Energy Development Law. Clients in these areas include developers, project owners, tax exempt entities, lenders, and equity participants.
Baird Holm's Tax Credit Expertise
Baird Holm’s Tax Credit & Alternative Finance team bring experience and expertise for the following types of tax credits:
- New Markets Tax Credits--Federal
- New Markets Tax Credits--Nebraska
- Historic Tax Credits--Federal
- Historic Tax Credits--Nebraska, Iowa and Kansas
- Low-Income Housing Tax Credits--Federal
- Low-Income Housing Tax Credits--Nebraska and Iowa
- Renewable Energy Tax Credits--Federal
- Renewable Energy Tax Credits--Nebraska
State Historic Tax Credit Legislation
In 2014, our team completed a three-year effort in which we successfully drafted and lobbied to pass a state historic tax credit program for Nebraska. This tax credit program provides a 20 percent credit against qualified expenses, up to $1,000,000 per project. The innovative program seeks to help Nebraska projects of all sizes, including urban and small town projects, by broadening the types of projects that may qualify, and limiting the necessary rehabilitation standards with state approval.
The relationship the Baird Holm team enjoys with local and regional developers, non-profit entities, lenders, investors, and legislators and regulators puts us in a unique situation that allows us to facilitate the connection of all involved entities in such a transaction. We act as the liaison for all parties, and help to structure, document and close deals which may otherwise go unnoticed or unexecuted.
Alternative Financing Expertise
- HUD 202 Program Financing
- HOME Loan Financing
- Housing Choice Vouchers and HUD Regulatory Matters
- Tax Increment Financing
- Grant Programs
Representative Reported Projects
The Baird Holm tax credit & alternative finance group has provided counsel for the following projects, among others. We have represented:
- Developer of Low-Income Housing Tax Credit project, with participation by Veterans Administration and a local college. Preparing tax credit and loan documents, and resolving complex real estate matters.
- Non-profit social service provider in complex federal and state New Markets Tax Credit financing involving a partnership with another social service provider, on a mixed-use campus with significant real estate and historic components.
- Non-profit social service provider in Low-Income Housing Tax Credit; financed complete renovation of formerly dilapidated apartment building. Work included successful resolution of land use litigation, complex real estate matters, and a mixed-use building that includes LIHTC and non-LIHTC components.
- Medical service provider in development and financing of construction of new mixed-use buildings that included both Low-Income Housing Tax Credit and federal Health and Human Service grant funded components, which required condominium subdivision and other creative real estate mechanisms to ensure successful financing. Project also included the buyout of a Historic Tax Credit-financed building on the same campus, and consolidation of various entities.
- Non-profit educational service provider who sponsored and provided capital to support a New Markets Tax Credit financing of a facility providing education to at-risk children of a tribe of Native Americans. To maximize the available tax credits, the project used bridge funding from the non-profit (using donated funds), which in turn was combined with tribal funds to make a leverage loan to a special purpose fund entity. The project also required creation of a special purpose 501(c)(2) to act as the QALICB for the project.
- Renewable energy developers in qualifying for and maintaining Community-Based Energy Development status to secure and maintain an exemption from Nebraska sales tax on equipment for the project.
- Clients in obtaining new legislation to enhance the C-BED program and make it more attractive for developers.
- Large hospital conglomerate in creative structuring to take advantage of tax credits to finance system-wide installation of geothermal facilities to provide heat and electricity.
- Leverage lender in a state and federal New Markets Tax Credit transaction for the development of a new equipment manufacturing facility. Leverage lender provided lending support to the special purpose fund entity from which funds were utilized to establish the qualified equity investment.
Our team is prepared to help you maximize opportunities and minimize risk.