Tax credit finance serves as a viable alternative to conventional financing. Our tax credit finance practice is one of the largest practices of this type based in the Southwest, and we have experience representing all of the different parties involved in tax credit finance transactions. Our attorneys in the Tax Credit Finance Group have developed vast networks to assist clients in maneuvering within this highly specialized area.
The attorneys in Snell & Wilmer’s Tax Credit Finance Group have closed transactions involving Low-Income Housing Tax Credits, Historic Tax Credits, New Markets Tax Credits and Renewable Energy Tax Credits. Our team is comprised of attorneys from a number of different disciplines including tax, commercial finance, real estate, environmental, securities, construction, public policy and renewable energy.
Low-Income Housing Tax Credits: The Low-Income Housing Tax Credit program is designed to facilitate the financing of residential rental housing within the United States for individual low-income tenants. Our attorneys have represented investors, syndicators, developers and lenders with respect to Low-Income Housing Tax Credit transactions including structures that involve a Historic Tax Credit component. We regularly advise clients regarding Year 15 exit strategies as well as the tax credit application process. We work closely with attorneys from our Affordable Housing and Community Development and Government Relations Groups to assist our clients in shaping public policy in this area.
New Markets Tax Credits: The New Markets Tax Credits program provides financing for real estate projects and businesses located in certain designated areas within the United States. Our attorneys have represented lenders with respect to making leverage loans and community development entities with respect to obtaining allocations of income tax credits. The Snell & Wilmer Tax Credit Finance Group has represented numerous real estate developers in obtaining New Markets Tax Credit financing for their real estate projects and is currently working with renewable energy developers in utilizing New Markets Tax Credit financing by “twinning” the New Markets Tax Credit and the Investment Tax Credit.
Renewable Energy Tax Credits: Tax credit financing and the monetization of tax benefits are significant sources of financing for renewable energy projects. Snell & Wilmer’s Tax Credit Finance Group advises renewable energy developers and investors with respect to structuring transactions that utilize Investment Tax Credits, Production Tax Credits and the Section 1603 Cash Grant. Our attorneys are well-versed in structuring projects employing partnership flip, sale-leaseback and lease pass-through structures, and have worked on transactions involving solar, wind, biomass, landfill gas and geothermal renewable sources. Our Tax Credit Finance Group works directly with attorneys from the Renewable Energy Group to counsel renewable energy developers with respect to project finance including the structuring of debt financing.
Other Income Tax Credits: In addition to the income tax credits mentioned above, we have experience advising clients with respect to other income tax credits such as the Qualifying Advanced Energy Project Credit described in Section 48C of the Internal Revenue Code and the Qualifying Therapeutic Discovery Project Credit described in Code Section 48D.
