Tax Credits

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Bradley leverages our broad and highly skilled banking practice to advise lending institutions on a range of tax credit matters. With experience at the national, regional, and state levels, our attorneys represent clients in all aspects of tax credit transactions.

We bring together a number of substantive areas of legal practice critical to our clients, including partnership and corporate law, tax law at the state and local levels, and real estate lending law. Our experience includes:

  • Closing one of the country’s first New Markets Tax Credit (NMTC) transactions and pioneering Alabama's state NMTC program
  • Assisting with legislation to expand Alabama's historic rehabilitation tax credit program in 2014 and reinstated in 2017
  • Representing lenders in transactions in the Rental Assistance Demonstration (RAD) program of the U.S. Department of Housing and Urban Development (HUD)

With regard to tax implications, our attorneys advise on:

  • Maximizing project tax benefits
  • Tax and legal due diligence
  • Qualification of entities for tax exemption under Section 501(c)(3) of the Internal Revenue Code
  • Partnership representatives for IRS matters
  • Tax increment financing and other available incentives from state and local governments, including tax abatements and revenue-sharing arrangements
  • Compliance with the LIHTC, NMTC, and Housing Tax Credit programs

Bradley has an extensive practice dedicated to Low-Income Housing Tax Credit (LIHTC) transactions that is designed to help clients leverage the tax credits under Section 42 of the Internal Revenue Code. We work closely with state and local bond issuers and various state housing authorities and prepare:

  • Construction and investment agreements
  • Credit applications
  • Financing documents
  • Acquisition and partnership agreements, along with related negotiations

The attorneys on our Affordable Housing team have deep knowledge of the housing bond market’s financing structures. We handle matters involving HUD programs, development projects involving tax-exempt bond-financed transactions, and LIHTC syndications. Bradley also handles tax-exempt financing and programs involving tax advantages, subsidies, or credit.

In our HTC practice, we represent investors in and developers of historic rehabilitation projects. We also have experience with projects that rely upon financing through state HTCs, advising developers, owners, lenders, and investors.

Bradley is equipped to tackle the complex legal, tax, and regulatory issues our clients face in these transactions, such as:

  • Providing tax opinions for tax credit investors, bridge and construction lenders, and borrowers
  • Documenting equity investments made by federal tax credit investors 
  • Structuring transactions, using all available incentives and sources of financing, risk minimization, and strategies for monetizing allocations of state HTCs
  • Requirements for federal and state reporting and compliance, including working with the state historic preservation office and state departments of revenue to ensure qualification and monetization of state HTCs

We have represented qualified businesses, community development entities, leverage lenders, and tax credit investors since the NMTC programs were adopted at the federal and state levels. With regard to the need for working capital, as well as construction and renovation, we structure and close investments that qualify under these programs.

Bradley is equipped to tackle the complex legal, tax, and regulatory issues our clients face in these transactions, such as:

  • Preparing allocation applications and qualifyied equity investments
  • Providing tax opinions for tax credit investors, community development entities, and borrowers
  • Documenting investments and loans made by community development entities
  • Structuring transactions, using all available incentives and sources of financing, risk minimization, and obtaining NMTC allocation
  • Certifying community development entities
  • Requirements for federal and state reporting and compliance, as well as credit provisions and compliance