Fiscal Cliff Deal Means Extension Of Multifamily Housing And Energy Efficiency Tax Credits

By Author: Gavin Cameron
Total Articles: 6
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Housing and real estate investors were among many groups holding their breath in hopes a deal could be reached to avoid what some believed could be another economic slow down. H.R. 8, also known as the American Taxpayer Relief Act of 2012, will extend many of the 2001/2003 tax cuts, as well as some key tax incentives for single and multifamily housing.

H.R. 8 will extend:

9% LIHTC credit rate until the end of 2013, which will help avert the loss of equity investment for affordable housing projects
Base housing allowance for affordable housing the end of 2013
45L new energy-efficient home tax credit through the end of 2013; allows a $2,000 tax credit for the construction of for sale and for-lease energy-efficient homes in buildings with fewer than three floors above grade

The extension of the tax credits will help investors like Cyprus and his company, Ocean Development Inc., by maintaining conditions that have been largely favorable for developers of multifamily and, of late, single-family housing. Cyprus and his wife Amy Cyprus, are among many investors who were well positioned to take advantage ...
... of increased demand for rental housing and increased investment in low-income, multifamily housing developments.

Cyprus and Ocean Development were already profitable before the housing bust. And shaky single-family housing markets helped increase demand even further as more and more people turned to rental housing. While the boom in multifamily housing has slowed somewhat, most experts believe the apartment market will remain strong with solid demand for rentals.

H.R. 8 will help maintain that strength in the year to come.

bAbout the Author: Gavin Cameron loves writing on real estate matters, professionals associated with real estate, real estate development companies etc. He is now writing about Ocean Development, Inc. a real estate development company, which develops, constructs, owns, and sells residential housing units.