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Tax Reform Could Significantly Affect LIHTC Equity Market

Novogradac & Company’s Notes from Novogradac blog took a post-election look at how Tax Reform Could Significantly Affect LIHTC Equity Market.

Authors Dirk Wallace and Michael Novogradac examine in detail the effect of lower corporate tax rates on possible investor equity prices for both the 9-percent and 4-percent LIHTC credits. They found that lowering the top corporate tax rate from 35 percent could lower investor equity price per credit by as much as 17 cents, which would have a drastic effect on the amount of equity available to developers of affordable housing.

The authors caution that we will have to wait and see what the proposed tax reform will look like and how other factors will affect equity pricing, but the issue merits close attention.

Read the entire article here.

Posted in Affordable Housing

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