FEDERAL & VIRGINIA REHABILITATION TAX CREDITS

Atoka Conservation Exchange provides qualified real estate owners, operators and developers with representation in establishing the eligibility of a project to generate Federal and Virginia Rehabilitation Tax Credits, quantifying the current market value and monetizing the credits on behalf of the owner. Atoka oversees the legal and regulatory third party service providers in applying, processing and procuring the credits from the various regulatory entities. Once the credits have been issued, Atoka represents the owner in the sale of the credits providing the sponsor with supplemental capital to finance the subject development, redevelopment or other qualified project.

  • Federal Rehabilitation Credits
  • Virginia Rehabilitation Credits

 

Once ready for tax credit sale, our streamlined process puts funds back into the hands of project developers and sellers quickly in order to maximize return on investment for sellers and tailored tax credit strategies for buyers. Atoka has relationships with a large network of wealth managers, CPAs, and other financial planning advisors of individual and corporate tax credit buyers. We understand how to structure effective tax credit transactions in order to meet the requirements and needs of both sellers and buyers.

FEDERAL HISTORIC PRESERVATION TAX CREDITS

The Federal Historic Preservation Credit program was created by Congress in 1976 and is an incentive to rehabilitate qualified historic structures. The program allows up to 20% of eligible rehabilitation expenses to be received as tax credits.

Historic Preservation Tax Credits are one-year credits with a five-year compliance period. Individuals and corporations may utilize these credits to the extent their tax liabilities are derived from passive activities such as real estate investments.

Credit Benefits:

  • Excess credits can be carried back one-year and carried forward for twenty years
  • Recapture is reduced each year during the recapture period
  • They are low risk with a less than 1% recapture rate

 

FEDERAL HISTORIC REHABILITATION TAX CREDITS

Atoka Conservation Exchange offers Virginia historic rehabilitation tax credits. Real estate developers who rehabilitate historic structures in Virginia earn these credits. They can be difficult to obtain and typically require a year of upfront preparation in order to create a corporate entity (LLC) to include the tax credit buyer.

Credit Benefits:

  • Credits are eligible against corporate and individual income taxes, bank franchise taxes and insurance company premium taxes
  • Credits may offset 100% of the taxpayer’s liability
  • Ten-year carry forward of unused credits