Good news for multifamily developers! On August 2, 2012, the Senate Finance Committee overwhelmingly approved the Family and Business Tax Cut Certainty Act of 2012 with a bipartisan vote of 19-5. The bipartisan bill is a comprehensive $205 billion package that extends numerous tax cuts but reverses the trends of the past by also reducing the number of tax extenders under consideration.
Making the list of key tax extenders is the Section 45L tax credit which rewards multifamily developers with tax credits of $2,000 per energy efficient apartment unit. The Section 45L tax credit had expired at the end of 2011 but this bill extends the tax credit for two years, through 2013. To illustrate how this tax cut works, KBKG recently certified and secured $196,000 in Section 45L tax credits for a newly constructed 98-unit apartment complex.
KBKG has successfully secured millions in Section 45L tax credits for developers throughout the country and supports extension of this tax credit. The Senate Finance Committee’s approval of this bill sets the stage for the expected extension of the Section 45L tax credits to be signed into law by the end of the year and made retroactive to January 1, 2012
If you are currently developing or have developed a multifamily project in the past 5 years, you may be a good candidate to secure these tax credits.