principals and staff have substantial expertise in the complex legal,
accounting and regulatory issues that are involved in making a successful tax
credit investment. Dudley Ventures provides advisory and structuring assistance
for New Markets Tax Credits, Historic Tax Credits, Investment Tax Credits and Low-Income Housing Tax Credits. Dudley Ventures has a staff of full service
professionals including an Advisory Services Team, a
Financial Reporting and Accounting Department and a full-time Compliance
Department to handle all financing and asset management requirements.
Dudley Ventures offers the following services:
- Acquisition of Low-Income Housing, Historic Tax Credits, New Markets Tax Credits, State Tax Credits, and Renewable Energy Tax Credits
- Syndication, Structuring and Placement of Federal and State Tax Credit Funds
- Credit Enhancement of Federal and State Tax Credit Investments
- Experienced Team of Seasoned Professionals
- Efficient Pricing, Quick Decision Making, Streamlined Closings
- Industry Leading Advisors including Attorneys, Accountants and other Professionals
Dudley Ventures and its affiliates have invested in and manage $1.6 billion in tax credit investments and its investor base includes national, regional and local financial institutions and a broad range of corporate America.
RENEWABLE ENERGY TAX CREDITS
Renewable Energy Tax Credits were created by Congress for projects involving the production and sale of electricity from renewable resources including wind, solar energy, biomass, geothermal deposits, and municipal waste.
Dudley Ventures works with developers, businesses, investors, and municipalities seeking to develop small utility-scale renewable energy projects and larger commercial projects to secure financing, power purchase agreements and government incentives to make their renewable energy projects possible.
To date, we have closed transactions including solar, solar thermal, wind and biomass, exceeding $66,700,000 in our proprietary investment funds.
For more information about our RETC projects, please click here.
NEW MARKETS TAX CREDITS
The New Markets Tax Credit Program is a $61 billion federal program created 16 years ago to encourage investment in low-income communities. The NMTC Program provides a 39% credit over a 7 year period to provide capital, credit and financial services in underserved markets. The Program is administered by the Community Development Financial Institutions Fund (“CDFI Fund”), a branch of the U.S. Department of the Treasury. The NMTC Program was recently extended through 2019, with $7 billion awarded to Community Development Entities in November 2016.
An allocation of credits is awarded to Community Development Entities ("CDEs") in a competitive process by the CDFI Fund and then allocated to qualifying projects. Upon receiving an allocation of New Markets Tax Credits, CDEs have five years to utilize the allocation, although the demand for the credits has resulted in very rapid deployment. In order for an investment to qualify for the NMTCs, the investment must be made through a CDE to either a business or a non-residential, commercial property that is located in a designated low-income community.
We work in all areas of the NMTC Program, including
investment (debt & equity), acquiring tax credits for project development,
fund reporting and asset management.
For more information about NMTCs, please click here.
HISTORIC TAX CREDITS
The federal Historic Tax Credit Program provides a reduction of tax liability to encourage the preservation and rehabilitation of historic properties.
Historic buildings qualify for tax credits equal to either 10% or 20% of qualified rehabilitation expenditures.
There is joint oversight/approval by the National Park Service and State Historic Preservation Offices for properties eligible for the Historic Tax Credit.
HTCs may be claimed when a property is placed in service, subject to a 5 year compliance period, 20% vesting each year. HTCs provide a dollar-for-dollar tax credit which is claimed within the first year that the investment is made, while other tax benefits, cash, and/or residual are typically earned over a 5 year period.
We work in all areas of the HTC Program including investment, advisory work with developers and governmental entities to utilize HTCs, fund reporting and asset management.
For more information on our HTC projects, please click here.
LOW-INCOME HOUSING TAX CREDITS
Federal Low-Income Housing Tax Credits
The Low-Income Housing Tax Credit Program was created by Congress to encourage the creation of affordable rental housing.
- Congress delegates to state housing agencies the authority to allocate a limited pool of Low-Income Housing Tax Credits (9% tax credits)
- The tax credits are claimed over a 10 year period, subject to a 15 year compliance period
- Properties may also qualify for the LIHTC Program through tax exempt bond financing, although the subsidy is substantially lower than the 9% credits
State Low-Income Housing Tax Credits
Many states have adopted state corollaries to the federal LIHTC Program in order to fill financing gaps. Dudley Ventures has been involved in the Georgia State Housing Tax Credits Program since the early days of its inception.
Dudley Ventures works with developers looking to develop affordable housing by acquiring their credits. We have also structured investment funds for our banking customers looking to satisfy their CRA needs or expand into the marketplace.
To date, our proprietary investment funds have closed $80,000,000 in LIHTC projects.
For more information on our LIHTC projects, please click here.