The use of tax credits has grown into a key driver for the successful completion and development of real estate investment projects, community revitalization programs and renewable energy projects. Farella tax attorneys have successfully closed a wide array of complex tax-credit transactions for developers, investors, community development entities and project sponsors nationwide, including transactions that have combined Historic Rehabilitation Tax Credits with New Markets Tax Credits, renewable energy tax credits and state tax credits. These recent projects have, in the aggregate, entailed well over $2 billion of rehabilitation costs and, as such, in connection with the syndication of the tax credits generated from these projects our firm has aided our clients in attracting well over $350 million of cash investments into their projects.

Farella tax attorneys are tapped regularly to assist in the role of co-counsel with law firms that do not have the specific experience structuring tax credit transactions. The experience of our tax credit attorneys, combined with our strong connections with other professionals and funding sources, makes Farella uniquely qualified to handle the complex structuring issues that are abundant in tax credit transactions.

Opportunity Zones

Enacted in 2017, the Opportunity Zone tax-incentive program provides tax benefits to drive investment and economic development in traditionally underfunded or underdeveloped regions. Our team of tax and real estate lawyers work with investors, real estate developers, private investment funds, and others seeking to qualify for tax benefits or to raise capital for investment in Qualified Opportunity Funds or Qualified Opportunity Zone Businesses.

Working with our clients, we structure Qualified Opportunity Funds and Qualified Opportunity Zone Businesses in compliance with complex federal tax regulations. Each project has unique requirements and requires understanding of goals and objectives for investors, and the regional implications of developing in an area designated as an Opportunity Zone.

Many times, investors look to the Farella team for advice on how to structure an investment in a Qualified Opportunity Fund to defer capital gains exposure from a prior investment and eliminate future taxes on the appreciation of fund investments. These situations have short time frames – less than 180 days. Our team’s experience minimizes ramp-up time to ensure that the deadline satisfied. Our team also frequently works with developers and fund managers as to how to structure a project to ensure compliance with timing and investment standard requirements and, more importantly, with the maximum tax advantages.