Federal and state tax credits play a key role in project finance today. Whether financing a historic hotel, portfolio of affordable housing developments, charter school, or wind farm, clients benefit from our attorneys' knowledge of the tax credit marketplace and their counsel on getting the most out of tax credit financing.

We are experienced with all the major governmental tax credit programs, including:

Federal Low Income Housing Tax Credit (LIHTC)

For more than 20 years, Ballard Spahr attorneys have had one of the most active and diverse Low Income Housing Tax Credit practices in the country. Our team has handled LIHTC-financed affordable housing projects in all 50 states, Puerto Rico, and the U.S. Virgin Islands.

We have represented affordable housing developers, syndicators, investors in LIHTCs, credit enhancers, public housing authorities, and housing credit agencies. We are leaders in the use of public-private partnerships to construct, purchase, and renovate public housing using LIHTCs. And our attorneys have handled LIHTC transactions encompassing a wide variety of deal structures, including those involving a combination of tax credits, grants in lieu of credits, tax-exempt bonds, and project-based vouchers.

Our representation is not limited to helping developers with initial tax credit financing. We also assist tax credit investors and bankers with syndication of tax credits and portfolio transactions. In the area of syndication of tax credits, our experience includes unguaranteed pools as well as guaranteed funds involving a variety of credit enhancement vehicles, such as financial guaranty insurance, corporate guaranties, and letters of credit. We also handle distressed asset transactions related to affordable housing, including partnership disputes and restructurings.

New Markets Tax Credit (NMTC)

The New Markets Tax Credit (NMTC) is an innovative and effective tool used to finance projects in low-income communities through a specially formed Community Development Entity (CDE), the sole recipient eligible for allocation of this distinct tax credit. Active since the NMTC was established by Congress in 2000, our practice is focused on the formation of CDEs, their application for allocation of NMTCs, and the crafting of appropriate financing structures. Our goal is for our clients to succeed in maximizing the value of NMTCs in all types of transactions.

We represent financial services institutions, nonprofit organizations, state and local governmental and quasi-governmental agencies and authorities, developers, owners, and operators. We counsel tax credit investors, leveraged lenders, participating lenders, private equity investment funds, community development entities, and qualified low-income community businesses.

Our multidisciplinary team provides comprehensive services:

  • Evaluates eligibility, assesses potential benefits, and mitigates risks
  • Forms, certifies, and quantifies community development entities
  • Prepares, reviews, and files allocation applications and assists with regulatory filings
  • Structures, negotiates, documents, and closes financing transactions, including direct investments, leveraged financings, blind pools, and syndications
  • Counsels in the event of recapture, default, foreclosure, refinancing, and workouts

We have experience combining NMTCs with other tax credits and financing sources, such as historic rehabilitation tax credits, energy tax credits and incentives, state and local tax credits, grants and subsidized loans, tax-exempt bond financing, American Recovery and Reinvestment Act funds, Tax Increment Financing, Community Development Block Grant funds, federal government agency loan guarantees, and conventional financing.

Federal rehabilitation tax credit (Historic Tax Credit)

For decades, Ballard Spahr has represented clients in using the federal rehabilitation tax credit (historic tax credit) to finance historic redevelopment. We have handled transactions that take advantage of the credit for retail, hotel, office, and residential uses and in governmental projects.

Our attorneys are experienced in combining the historic tax credit with the Low Income Housing Tax Credit, the New Markets Tax Credit, renewable energy credits, and other subsidies to offset costs and maximize the benefits of historic redevelopment. We combine our legal and tax skills with investor market experience to effectively negotiate, document, and close transactions.

We also have deep experience with renewable energy production and investment tax credits and various state tax credits.

Our Experience Spans Industry Participants and Deal Structures

Our diverse client mix means that we can offer a broad range of effective solutions. Our experience with deal structures is just as varied. We work with those that involve combinations of tax credits, grants, tax-exempt bonds, and other subsidies. Our multidimensional experience enables us to represent clients through the life cycle of the deal, including asset refinancing, disposition, investor exit from the ownership, and resyndication. As an adjunct to their tax credit knowledge, our attorneys are fully versed in relevant real estate, federal and state income tax, finance, and creditors' rights issues.

Members of the tax credit team are leaders in the field who speak regularly at conferences and participate in leading industry groups.