Why should someone invest in tax credits?
The benefits of state tax credits are two-fold: social and financial. First, state tax credits provide a social benefit by encouraging real estate developers to build or rehabilitate necessary affordable housing for sectors of the public that are increasing. Second, both federal and some state governments like Georgia are providing specific financial incentives to encourage the private sector to create this housing. Some of these incentives are: • Reduced taxes. State tax credits are a dollar-for-dollar offset or reduction in the investor’s state tax liability. • Increased cash. Tax credits and their related benefits increase cash flow and positively impact net income for both investors/purchasers and developers. • Regulatory benefit. Community banks can utilize state tax credits for their own account or their customers’ accounts, helping banks satisfy their Community Reinvestment Act (CRA) obligations. • Insurance company benefit. Insurance company investors receive a dollar-for-dolla
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- Why should someone invest in tax credits?
