STATE: Oklahoma
Section 2357.46 - Tax Credit for Eligible Expenditures Incurred by a Contractor in the Construction of Energy Efficient Residential Property
http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=443877
also see:
http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=OK12F&state=OK&CurrentPageID=1&RE=1&EE=1
This is a tax credit for up to $2,000 per home and applies to residential single family and duplexes that are less than 2,000 sf which include energy efficient heating and cooling systems, windows, doors, roofs and insulation to minimize heat loss and gain.
I spoke to the State of Oklahoma and was told that this is the only tax incentive available for residential projects in the state. And it is debatable (not clearly stated) if this would apply to a 'development' of such houses as opposed to just 'one at a time' construction.
FEDERAL:
Residential Energy Conservation Subsidy Exclusion (Corporate)
http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US31F&State=federal¤tpageid=1&ee=1&re=1
energy conservation subsidies provided by public utilities, either directly or indirectly, are nontaxable. (If you participate in your local utility's energy conservation program)this one is a 'maybe'...have to work it out with the IRS.
Energy-Efficient New Homes Tax Credit for Home Builders
http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US41F&State=federal¤tpageid=1&ee=1&re=1
Site-built and Manufactured homes qualify for a $2,000 credit if they are certified to reduce heating and cooling energy consumption by 50% relative to the International Energy Conservation Code standard and meet minimum efficiency standards established by the Department of Energy. Building envelope component improvements must account for at least one-fifth of the reduction in energy consumption.
THIS INCENTIVE COSTS MONEY TO GET. FOR A SINGLE FAMILY HOME IT COULD COST $500-$1,000 TO GET THE $2,000. THIS COST IS DUE TO THE TESTING AND VERIFYING THAT IS REQUIRED TO EARN THE CREDITS. THIS COST WOULD LIKELY BE GREATLY REDUCED IF HOUSES ARE BUILT IN QUANTITY.
Residential Energy Efficiency Tax Credit
http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US43F&State=federal¤tpageid=1&ee=1&re=1
(This is for the purchaser of the house and it is a tax credit worth 30% of the cost of energy efficient features of the home (Water Heaters, Furnaces, Boilers, Heat pumps, Air conditioners, Building Insulation, Windows, Doors, Roofs, Circulating fans used in a qualifying furnace )to a max of $1500.)
Residential Renewable Energy Tax Credit
http://www.dsireusa.org/library/includes/incentive2.cfm?Incentive_Code=US37F&State=federal¤tpageid=1&ee=1&re=1
(This is a tax credit for the Owner/ Builder/Developer. For solar, wind, geothermal and fuel cell installations. Tax credit can be up to 30% of the cost of the renewable energy system - see chart for specifics. This is currently a big incentive for Geothermal-Solar and PV because there is no limit...the full 30% of these systems can be credited.
If the homes are Energy Star - (which is a green building rating and easy to achieve- lower standards than LEED) then energy efficient mortgages may be available to the home buyers:
http://www.energystar.gov/index.cfm?c=bldrs_lenders_raters.energy_efficient_mortgage
THERE MAY ALSO BE OPPORTUNITIES TO PARTNER WITH THE LOCAL UTILITY IF THEY NEED TO -OR WANT TO -EARN CREDITS FOR PROVIDING CERTAIN AMOUNTS OF THEIR ENERGY SUPPLY THROUGH RENEWABLES (SUCH AS THE PHOTOVOLAICS ON THE ROOFS OF YOUR HOUSES). THERE MAY BE SOME FUNDING OPPORTUNITIES THERE.
Thursday, May 7, 2009
Low Income Tax Credits
The Low-Income Housing Tax Credit
Since 1986, Section 42 of the Internal Revenue Code has provided low-income housing tax credits for new construction and acquisition/rehabilitation of affordable, rental housing. These are some of the key elements of the Credit:
• The Credit, generally, is designed to be equal to 70 percent of the costs of constructing new low-income housing or 30 percent of the costs of acquiring existing housing.
• The Low-Income Housing Tax Credit is available for 10 years starting with the first year in which the property is placed in service. A taxpayer can also elect to begin this credit period in the succeeding year.
• The Credit produces a dollar-for-dollar reduction of the taxpayer's tax liability.
• Owners of a project generally also receive deductions for tax losses associated with the project.
• The housing must meet certain requirements during a 15-year Compliance Period and rents on the housing must remain affordable to low-income persons for at least 30 years or more.
• For investors/owners other than C Corporations, passive activity limitations on losses do apply
• Beginning in 2007, the Credit is available for use against the alternative minimum tax.
• To be entitled to the Credit, the taxpayer must be an owner of the housing - generally, this is accomplished by an investor being a limited partner of a partnership which owns the housing.
Use of the Credit
Typically, private investors form limited partnerships with nonprofit and for-profit developers of low-income housing. The investor limited partners generally take a 99.9 percent interest in the partnership. The profits, losses and Credits from the housing development flow through to the investors. Those who find the Credit most attractive are those with a likelihood of taxable income over the 10-year Compliance Period.
Widely held corporations with anticipated taxable income may find this kind of investment attractive. Because a widely held corporation is not subject to the passive loss rules, the corporation is likely to have a greater opportunity to make use of the Credit. Since 1995, the Emerging Issues Task Force of FASB has had recommended procedures for accounting for the tax benefits associated with the Credit. Tax advisors for investor corporations may wish to review EITF Issue No. 94-1.
Credit Eligibility and Approval
The Credit is available only for housing that is part of a "qualified low-income housing project." Such a project is one which meets either the "20/50 test" or the "40/60 test." That is, at least 20 percent of the residential units must be rent-restricted and occupied by families having incomes which are 50 percent or less of area median income, or at least 40 percent of the residential units must be occupied by families that have incomes which are 60 percent or less of the area median income. This minimum set aside must be accomplished within 12 months of the project being "placed in service" and has to be maintained for 15 years from the beginning of the year in which the Credit is first taken. Since 1990, projects are eligible for the credit only if they are subject to an extended use agreement which requires the project to remain in low-income use for an additional 15 years. There are certain restrictions on transfer that also apply. Under certain circumstances, a low-income unit will remain eligible for the credit even if a tenant's income increases to the point that it exceeds 50 or 60 percent of median.
Qualified low-income units must also have restricted rents. Gross rents (including utilities other than telephone) must not exceed 30 percent of the tenant's imputed income (50% or 60% of area median) for a unit of a particular size. Other limitations apply as well. For instance, the initial lease term for a tenant usually must be at least 6 months (although there are some limited exceptions for transitional housing), tenants cannot be full-time students (there are exceptions here as well), and the units must be available to the general public.
Generally, for a building to be eligible for the Low-Income Housing Tax Credit, the Oregon Housing and Community Services Department, the Washington Housing Finance Commission, or the analogous agency in another state, must allocate a portion of its credit authority to the building no later than the end of the year during which the building is placed in service.
However, a state allocation isn't necessary where more than 50 percent of the land and improvements of a project are financed using tax exempt bonds which are subject to the state's volume cap.
How Much is the Credit Worth?
The Credit is intended to equal 70 percent of the costs of constructing new low-income housing or 30 percent of the costs of acquiring existing housing. To accomplish this result, the Credit provides tax benefits each year for 10 years that are equal to approximately 9 percent of the project cost for new housing or 4 percent of the acquisition cost for existing housing.
The 9 percent credit is available for new construction or substantial rehabilitation of existing units ("substantial" rehabilitation is $3,000 per unit or 10% of the unadjusted basis of the building--whichever is greater). The 4 percent credit is available for new construction or substantial rehabilitation of units where tax-exempt bonds, or other federally-subsidized dollars, are used. The 4 percent credit is also available for the acquisition of existing units. Just what percentage will apply to any given project will depend on: (1) whether the project is for new construction or rehabilitation work, (2) whether there are other federal subsidies supporting the project, and (3) whether the taxpayer elects to fix the percentage rate, as it relates to the 4 percent credit only, as of the date a credit reservation agreement is entered into with the state or the date on which the project is placed in service.
(source Homestead Cap Investment)
Since 1986, Section 42 of the Internal Revenue Code has provided low-income housing tax credits for new construction and acquisition/rehabilitation of affordable, rental housing. These are some of the key elements of the Credit:
• The Credit, generally, is designed to be equal to 70 percent of the costs of constructing new low-income housing or 30 percent of the costs of acquiring existing housing.
• The Low-Income Housing Tax Credit is available for 10 years starting with the first year in which the property is placed in service. A taxpayer can also elect to begin this credit period in the succeeding year.
• The Credit produces a dollar-for-dollar reduction of the taxpayer's tax liability.
• Owners of a project generally also receive deductions for tax losses associated with the project.
• The housing must meet certain requirements during a 15-year Compliance Period and rents on the housing must remain affordable to low-income persons for at least 30 years or more.
• For investors/owners other than C Corporations, passive activity limitations on losses do apply
• Beginning in 2007, the Credit is available for use against the alternative minimum tax.
• To be entitled to the Credit, the taxpayer must be an owner of the housing - generally, this is accomplished by an investor being a limited partner of a partnership which owns the housing.
Use of the Credit
Typically, private investors form limited partnerships with nonprofit and for-profit developers of low-income housing. The investor limited partners generally take a 99.9 percent interest in the partnership. The profits, losses and Credits from the housing development flow through to the investors. Those who find the Credit most attractive are those with a likelihood of taxable income over the 10-year Compliance Period.
Widely held corporations with anticipated taxable income may find this kind of investment attractive. Because a widely held corporation is not subject to the passive loss rules, the corporation is likely to have a greater opportunity to make use of the Credit. Since 1995, the Emerging Issues Task Force of FASB has had recommended procedures for accounting for the tax benefits associated with the Credit. Tax advisors for investor corporations may wish to review EITF Issue No. 94-1.
Credit Eligibility and Approval
The Credit is available only for housing that is part of a "qualified low-income housing project." Such a project is one which meets either the "20/50 test" or the "40/60 test." That is, at least 20 percent of the residential units must be rent-restricted and occupied by families having incomes which are 50 percent or less of area median income, or at least 40 percent of the residential units must be occupied by families that have incomes which are 60 percent or less of the area median income. This minimum set aside must be accomplished within 12 months of the project being "placed in service" and has to be maintained for 15 years from the beginning of the year in which the Credit is first taken. Since 1990, projects are eligible for the credit only if they are subject to an extended use agreement which requires the project to remain in low-income use for an additional 15 years. There are certain restrictions on transfer that also apply. Under certain circumstances, a low-income unit will remain eligible for the credit even if a tenant's income increases to the point that it exceeds 50 or 60 percent of median.
Qualified low-income units must also have restricted rents. Gross rents (including utilities other than telephone) must not exceed 30 percent of the tenant's imputed income (50% or 60% of area median) for a unit of a particular size. Other limitations apply as well. For instance, the initial lease term for a tenant usually must be at least 6 months (although there are some limited exceptions for transitional housing), tenants cannot be full-time students (there are exceptions here as well), and the units must be available to the general public.
Generally, for a building to be eligible for the Low-Income Housing Tax Credit, the Oregon Housing and Community Services Department, the Washington Housing Finance Commission, or the analogous agency in another state, must allocate a portion of its credit authority to the building no later than the end of the year during which the building is placed in service.
However, a state allocation isn't necessary where more than 50 percent of the land and improvements of a project are financed using tax exempt bonds which are subject to the state's volume cap.
How Much is the Credit Worth?
The Credit is intended to equal 70 percent of the costs of constructing new low-income housing or 30 percent of the costs of acquiring existing housing. To accomplish this result, the Credit provides tax benefits each year for 10 years that are equal to approximately 9 percent of the project cost for new housing or 4 percent of the acquisition cost for existing housing.
The 9 percent credit is available for new construction or substantial rehabilitation of existing units ("substantial" rehabilitation is $3,000 per unit or 10% of the unadjusted basis of the building--whichever is greater). The 4 percent credit is available for new construction or substantial rehabilitation of units where tax-exempt bonds, or other federally-subsidized dollars, are used. The 4 percent credit is also available for the acquisition of existing units. Just what percentage will apply to any given project will depend on: (1) whether the project is for new construction or rehabilitation work, (2) whether there are other federal subsidies supporting the project, and (3) whether the taxpayer elects to fix the percentage rate, as it relates to the 4 percent credit only, as of the date a credit reservation agreement is entered into with the state or the date on which the project is placed in service.
(source Homestead Cap Investment)
M-OK: Density + Sustainability Possibilities and Samples Photos
Density:
Medium Density is generally 12-16 units/ acre
17 acres x 15 units= 255 units easily possible.
May consist of detached, semi-attached and/or attached (or multi-unit) housing
(Mixed 2 and 3 bedrooms for most? Perhaps a few larger units?)
Features could include: Front porches, central green spaces (a 'green street', walking paths), a single family, residential feel, Common gardens . A community building, children’s playground,outdoor courtyard areas that provide protected play areas for children, garden spaces, areas for socializing.
Sustainable features could include:
Are you interested in getting LEED certified?
This link is a Great Example of a project such as yours might be. $97/sf:
http://www.usgbc.org/ShowFile.aspx?DocumentID=3391
Below are samples of developments that match many of the above requirements:
Medium Density is generally 12-16 units/ acre
17 acres x 15 units= 255 units easily possible.
May consist of detached, semi-attached and/or attached (or multi-unit) housing
(Mixed 2 and 3 bedrooms for most? Perhaps a few larger units?)
Features could include: Front porches, central green spaces (a 'green street', walking paths), a single family, residential feel, Common gardens . A community building, children’s playground,outdoor courtyard areas that provide protected play areas for children, garden spaces, areas for socializing.
Sustainable features could include:
- exterior envelope design to significantly exceed state energy requirements
- high efficiency heating and cooling systems to allow for more efficient room temperature control,
- efficient ventilation systems,
- pervious paving and soft landscape to absorb rain water, rainwater harvesting, storage & reuse.
- onsite stormwater filtration,
- abundant natural lighting,
- nontoxic finishes, adhesives and paints,
- community garden space to grow vegetables,
- centralized parking limiting the amount of surfaced paving
- geothermal
- passive solar orientation + design
- photovoltaic panels
Are you interested in getting LEED certified?
This link is a Great Example of a project such as yours might be. $97/sf:
http://www.usgbc.org/ShowFile.aspx?DocumentID=3391
Below are samples of developments that match many of the above requirements:
Monday, February 23, 2009
On the Boards! Addition/ Renovation on the Water in Norwalk.
After! (Front)
After! (Side)
Before (Side and Front)
On the Boards! New Green Home in Rowayton, CT
First Floor Plan...
Second Floor Plan...
Front of House...
Side of House... (yes those are Solar Panels on the roof!)
Second Floor Plan...Front of House...
Side of House... (yes those are Solar Panels on the roof!)Back of House...
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