Clocktower Tax Credits, LLC, is a national broker of State and Federal Tax Credit incentives. We service the Real Estate, Renewable Energy, and Film/Digital Media industries, as well as the more general area of Economic Development incentives. These programs are designed to provide necessary financing to fill the money gap to complete necessary, important, and exciting projects nationwide. The great news is that these programs are expanding, turning more of these projects into realities.
An analysis by Novogradac & Company LLP (January 2, 2024) identified four states that created new tax incentives for Affordable Housing in 2023, as well as two states that legislated new Historic Building Rehabilitation tax credits. By year’s end, the study totaled 30 states that provided state-level tax credit subsidies for affordable housing, 38 states that offered Historic tax credits, and 13 states where New Market Tax Credits were offered. Only eight states offered no tax credit incentives to developers of such projects. Research shows that many more development projects are completed in states that offer such tax incentives than in those states lacking such programs.
In the domestic Film/Digital Media industry, there are now 38 states that offer financial incentives to film and produce movies, television, websites and other digital media within their borders. While some programs have been trimmed, more states have created or increased incentive programs, with either transferable or refundable tax credits. With the writers’ and actors’ strikes over and post-pandemic production activity surging, these financial incentives are the key to turning so many locations across the country into “Little Hollywoods”.
Finally, in the Renewable Energy industry, the Inflation Reduction Act of 2022 has created all the incentive necessary to spur hundreds of billions of dollars of new projects and products. The amount of tax credit issued to a project has leaped from about 22% of project cost to 30%, 40%, and even up to 60% in certain cases. And most importantly, the creation of a transferable tax credit, which no longer requires investors to enter into complex, multi-year partnerships in order to save on their taxes, will attract perhaps $100 billion in investment in 2024. State incentives are not needed here!
So 2024 portends to be a very exciting year for developers, producers, and investors in tax credit projects, with so many state governments joining with the Federal Treasury to stimulate the private activity in Real Estate, Film, and Renewable Energy. Clocktower Tax Credits helps put these projects together. To schedule a meeting with any Clocktower associate, or a phone call or Zoom session, please call President Jeff Jacobson at (978) 823-0200, or email him at JJacobson@ClocktowerTC.com.