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| | Texas "GO
Zone" Act Consultants...
Rainmaker
Marketing Corporation's Texas GO Zone Act consultants specialize in
the financing structures for commercial income-producing property construction programs and
property due diligence documentation services based upon changes in the IRS code
as a result of a "GO Zone" designation given to Southeast Texas as a
result of Hurricane Ike. Rainmaker has definitive expertise and experience
with these programs dating back to the Hurricane Katrina federal aid package of
benefits.
It
is likely the aid package being debated in Congress will include the following
elements:
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Tax-Exempt
Housing Finance Bonds. If you are seeking to build a low-income
housing program, then the tax-exempt bond financing pool for these
activities may be provided by the State of Texas out of an allocation
provided by the Congress. |
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Tax-Exempt
Private Activity Bonds. If you aren't involved in single-family
home construction for low and moderate income households, your project may
qualify for tax-exempt bond financing pursuant to a Private Activity Bond
allocation the State of Texas elects to make out of its tax-exempt bond
funding pool. In the Gulf Opportunity Zone Act of 2005, developers
could apply for the tax-exempt bond financing; or, in the alternative, elect
to receive tax credits, but not both. |
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New
Markets Tax Credits. Enhanced access to New Markets Tax Credits
throughout the southeastern Texas GO Zone areas will be a pivotal issue in
the pending act Congress will pass. In the case of the Gulf
Opportunity Zone Act of 2005 (the Katrina/Rita/Wilma recovery act) the
availability of acceptable financing using the NMTCs was - more or less -
subject to terms and conditions most commercial real estate developers could
not swallow. |
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Enterprise
Zone Tax Credits. The 110th Congress should pass a law designating all
of the southeast Texas counties and northwestern Louisiana Parishes as
"enterprise renewal zones", thus unlocking the full potential of
the Enterprise Zone Tax Credits. |
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Bonus
Depreciation Expense Allowance. The "BDEA" is a
provision to allow for a one-time 50% bonus depreciation expense write-down
for new business assets placed in service by a given date. In the
past, the government did little to push this much-needed benefit into the
market. One would hope that additional supplementary efforts would be
in the offing as this statutory entitlement could have a material effect on
the southeast Texas recovery effort. |
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Do
You Know The Secret?
When it comes to commercial real
estate development finance, it doesn't matter whether you need to raise
$5 million or $50 million, the out-of-pocket costs, advance fees and
project due diligence costs will always require the same relative
investment dollars the promoters have to fund. Do you know what
that amount is? Do you know the Secret? |
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