American Taxpayer Relief Act of 2012 – what’s in it for affordable housing?

The newly enacted American Taxpayer Relief Act of 2102 preserves important tax credit and deductions used in affordable housing deals. Here is a summary of the relevant provisions:

  • 9% Credit: Effectively a two year extension for projects receiving 2013 allocations and a one year extension for projects receiving a 2012 allocation.
  • Military Housing Allowance:  Extends for an additional two years the provision that a member of the military’s basic housing allowance is not considered income
  • Extension of New Markets Tax Credit: Retroactively extends the new markets tax credit for 2012 and also for 2013 providing a maximum annual amount of qualified equity investments of $3.5 billion each year.
  • Bonus Depreciation: Extends the current 50 percent expensing provision for qualifying property purchased and placed in service before January 1, 2014

Nixon Peabody

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