In July 2010, Cincinnati Union Bethel was awarded low income housing tax credits (LIHTC) from the Ohio Housing Finance Agency and historic tax credits (HTC) from the National Park Service to remodel the Anna Louise Inn. These tax credits are very popular, very competitive and much sought after. A tax credit is an incentive: investors can reduce their tax liability and invest in projects that are a public good and that would probably not occur if not for the credits.
Lots of developers use them: Western & Southern's development of Brackett Village in Over the Rhine is listed as a low income housing tax credit property.
Tax credits, in other words, are vital to many community development projects.
Basically the federal government sets aside credits for certain public policy objectives affordable rental housing, historic renovation, renewable energy are all examples and gives these credits to states. In the case of LIHTC, the state housing finance agency ranks the proposed projects and awards tax credits. The Anna Louise Inn was the #1 ranked project in its category for permanent supportive housing in Ohio when we received our tax credit award.
Credits are sold to investors to raise cash for acquisition, rehabilitation, and construction costs. The individual or corporation that purchases the housing tax credit will receive the credit for 10 years and can subtract the amount of the housing credit on a dollar-for-dollar basis from federal income tax liability. Traditionally banks and insurance companies are the most frequent investors in tax credit deals. For example, Western & Southern has invested in tax credits, taking advantage of the tax incentive.
Others in Cincinnati Who Have Received LIHTC Tax Credits
St. Paul Village
Pleasant Run Apartments
Walnut Hills Apartments
Others in Cincinnati Who Have Received Other Kinds of Tax Credits
Central Parkway YMCA
Artspace Hamilton Lofts
St. Paulus Church
Apex Industrial Technologies LLC
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