Who typically owns a tax credit project and how do they use the credit?
Projects are typically owned by limited partnerships (but sometimes by limited liability companies). The general partner is usually a limited liability company, for-profit corporation, or non-profit corporation. AEOA, a non-profit corporation, is the General Partner in the AEOA Foyer Limited Partnership. The limited partner investor/owner is an entity who can use the Credit. Investors/owners reduce their federal income tax liability over a 10-year period in qualifying projects. There are limitations on individuals claiming Credit on personal income taxes, so most investors are corporations or groups of corporations.As in this case, the limited partnership is frequently formed with an initial limited partner (investor/owner) so the limited partnership can enter into necessary contracts before the ultimate owner/investor is admitted. For the AEOA Foyer Corporation, Harlan Tardy (AEOA Executive Director) was the initial limited partner. The initial limited partner withdraws before the cre
