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Tax Credits Resource Directory

Public Welfare Investments

National banks may make investments that are primarily designed to promote the public welfare under the investment authority in12 USC 24(Eleventh)(PDF) and the implementing regulation,12 CFR 24. This authority allows banks to make investments that primarily benefit low- and moderate-income individuals, low- and moderate-income areas, or other areas targeted by a government entity for redevelopment, or if the investment would receive consideration as a qualified community development investment under 12 CFR 25.23 of theCommunity Reinvestment Act. Examples of these investments include supporting affordable housing and other real estate development, providing equity for start-up and small business expansion, and revitalizing or stabilizing a government-designated area (see thePublic Welfare Investments Fact Sheetfor more information).

National banks seeking to provide financing to tax credit projects under the public welfare investment authority must either request prior OCC approval or submit an after-the-fact notice to the OCC, depending on the bank's safety and soundness profile, CRA performance, and the nature of the project financing.

Federal savings associations may make similar public welfare investments under12 CFR 560.36. They also have limited authority under12 CFR 160.36,"De Minimus Investments," to make investments of the type permitted for national banks under12 CFR 24.11Further, federal savings associations are authorized under12 CFR 159to make investments in service corporations engaged in broad range of preapproved activities, including certain community development related investments and activities that include "investments in low-income housing tax credit and new markets tax credit projects and entities authorized by statute (e.g., community development financial institutions) to promote community, inner city, and community development purposes."

Tax Equity Finance Transactions

Under 12 USC 24(Seventh) and 12 USC 1464 lending authority and implementing regulation12 CFR 7.1025(effective on April 1, 2021), banks may engage in tax equity finance transactions. A tax equity finance is the functional equivalent of a loan, and the transaction satisfies applicable conditions. The authority to engage in tax equity finance transactions is separate from, and does not limit, other investment authorities available to banks under the National Bank Act, for example, public welfare investments pursuant to 12 USC 24(Eleventh) and 12 CFR 24. SeeOCC Bulletin 2021-15, "Commercial Lending: Tax Equity Finance Transactions Pursuant to 12 CFR 7.1025."

For more information, refer to thePublic Welfare Investments Resource Directory.

If you need assistance, please call the Community Affairs Department at (202) 649-6420 or contact yourDistrict Community Affairs Officer.

Investments made under 12 CFR 160.36 are limited to the greater of 1 percent of total capital or $250,000.

Historic Tax Credit (HTC) ResourcesShow

The federal Historic Tax Credit Program helps revitalize communities by encouraging the flow of private funds to facilitate the rehabilitation of historic buildings. Under the program, the costs of rehabilitation and restoration of certified historic properties are subsidized by transferring HTCs from project sponsors to third parties, which may include banks. The National Park Service within the U.S. Department of the Interior and the Internal Revenue Service jointly administer the Historic Tax Credit Program in partnership with State Historic Preservation Offices.

Federal Resources

On December 22, 2017,Public Law No. 115-97was signed and enacted, amending the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. Pub. L. 115-97 (Section 13402) modifies the 20 percent HTC and provides certain transition rules. These and other changes to the Internal Revenue Code may affect a taxpayer's ability to use of the 20 percent HTC. Pub. L. 115-97 also repeals the 10 percent HTC for non-historic buildings.

National Park Service

U.S. Department of the Interior, National Park Service (NPS)

The NPS administers the Historic Tax Credit program jointly with the Internal Revenue Service (IRS) and in partnership with State Historic Preservation Offices (SHPO). They offer a wealth of resources includingProgram Regulations for Historic Tax Credits, 36 CFR 67.

U.S. Department of the Treasury, Internal Revenue Service

  • Treasury Regulation Section 1.48-12Internal Revenue Code and Treasury Regulations Regarding the Investment Tax Credit for Qualified Rehabilitation Expenditures
  • Internal Revenue Code Section 47Internal Revenue Code Regarding the Rehabilitation Tax Credit
  • Rev. Proc. 2014-12This revenue procedure establishes the requirements (the safe harbor) under which the Internal Revenue Service will not challenge partnership allocations of Section 47 rehabilitation credits by a partnership to its partners.
  • Final Regulations: Rehabilitation Credit Allocated Over a 5-Year PeriodIncome Inclusion When Lessee Treated as Having Acquired Investment Credit Property, 81 Fed. Reg. 47739 (PDF)
  • Tax Aspects of Historic Preservation Frequently Asked Questions

Industry Organizations and Professional Associations

National Conference of State Historic Preservation Officers (NCSHPO)NCSHPO is the professional association of the state government officials who carry out the national historic preservation program as delegates of the Secretary of the Interior pursuant to the National Historic Preservation Act of 1966, as amended (NHPA) (16 USC 470). The NHPA provides for the designation of a State Historic Preservation Officer (SHPO) in each state.

National Housing & Rehabilitation Association (NH&RA)NH&RA is an association for professions in the historic rehabilitation, affordable housing, new markets, and renewable energy tax credit programs. In addition, the association produces Tax Credit Advisor publications for organizations interested in financing tax credit projects.

National Trust for Historic PreservationThe National Trust for Historic Preservation is a private, nonprofit membership organization dedicated to saving historic places and revitalizing America's communities by providing industry leadership, education, advocacy, and resources.

  • Historic Rehabilitation Tax Credit Recapture SurveyThe National Trust for Historic Preservation commissioned this study to determine the frequency and amount of recapture that investors have experienced with the federal historic rehabilitation tax credit (HRTC). The study was conducted using an on-line survey of a group of HRTC investors that have made significant investments. Respondents indicate that of the total HRTCs claimed, they have experienced a recapture rate of less than three-quarters of one percent over the past 10 years.
  • National Trust Community Investment Corporation (NTCIC)The National Trust Community Investment Corporation (NTCIC) makes equity investments in real estate projects that qualify for federal historic tax credits and other tax credit transactions. This site includes an interactive tax credit guide to walk through the three stages of utilizing historic tax credits: Qualifying, Earning, and Redeeming. The site also offers a tax credit calculator, to discover the value of the tax credits generated by a project.

Novogradac Historic Tax Credit Resource CenterThe resource center offers information on IRS rulings, legislation, studies and reports, and breaking news on Historic Tax Credits.

OCC Resources

  • Community Developments Insights: Historic Tax Credits: Bringing New Life to Older CommunitiesThis Community Developments Insights report describes how this tax credit program operates, outlines the risks and regulatory considerations of participation in the program, and discusses how investments in these tax credit transactions by banks may be considered under the Community Reinvestment Act.

Low-Income Housing Tax Credit (LIHTC) ResourcesShow

The Low-Income Housing Tax Credit (LIHTC) program was established by the Tax Reform Act of 1986 (Internal Revenue Code Section 42) to create market incentives for the acquisition and development or rehabilitation of affordable rental housing. The equity capital generated from the tax credits lowers the debt burden on LIHTC properties, making it easier for owners to offer lower, more affordable rents, while investors, such as banks, obtain a dollar-for-dollar reduction in their federal tax liability. Over the past 25 years, this program has become an important tool for addressing the nation's affordable housing needs.

The U.S. Department of the Treasury's Internal Revenue Service is the federal agency responsible for administering the LIHTC program. LIHTCs are distributed to state housing finance agencies (HFA) on an annual basis. The state HFAs then allocate the credits to qualified affordable housing development projects on a competitive basis. HUD collects data on LIHTC projects and provides resources for using the program to develop affordable rental housing.

Federal Resources

Internal Revenue Service

  • Internal Revenue Code, Section 42Low-Income Housing Credit
  • IRS Resources About Tax Exempt BondsInternal Revenue Service, U.S. Treasury Department

State Housing Finance Agencies

  • National Council of State Housing AgenciesThe council was created by the nation's state HFAs as a nonprofit affordable housing advocacy organization that represents state HFAs; the District of Columbia, Puerto Rico, and the U.S. Virgin Islands; two (non-HFA) state agencies that allocate LIHTCs, and for-profit and nonprofit firms in the affordable housing field. The website has a directory of state HFAs.

U.S. Department of Housing and Urban Development

  • Low-Income Housing Tax CreditsA searchable dataset of LIHTC projects placed into service.

Industry Organizations and Professional Associations

Affordable Housing Investors CouncilThe council provides information about the benefits of investing in affordable housing tax credit properties, educates corporate investors on all aspects of affordable housing, and discusses issues of importance to investors in the industry.

Affordable Housing Tax Credit CoalitionThe coalition is a group of developers, syndicators, lenders, nonprofit groups, public agencies, and others concerned with the low-income housing tax credit.

CohnReznick Affordable Housing Resource CenterThe center has a variety of materials, includinghousing tax credit performance data and analysis.

National Association of Local Housing Finance AgenciesThe national association comprises professionals, city and county agencies, nonprofit organizations, underwriters, consultants, financial advisors, bond counsels, and rating agencies that help finance affordable housing in the broader community development context at the local level.

National Association of State and Local Equity FundsThe association promotes the efficient management of state and local equity funds to create or rehabilitate affordable rental housing throughout the United States.

National Housing & Rehabilitation AssociationThe association is an association for professions in the historic rehabilitation, affordable housing, new markets, and renewable energy tax credit programs. In addition, the association produces theTax Credit Advisorfor organizations interested in financing tax credit projects.

Novogradac Affordable Housing Resource CenterThe center provides news, facts and figures, federal and state guidance, research and reports, and other resources on the LIHTC program.

OCC Resources

Community Development Insights: Low-Income Housing Tax Credits: Affordable Housing Investment Opportunities for BanksThis edition ofCommunity Developments Insightsdescribes how LIHTCs are used to develop affordable rental housing and how banks can benefit from investing in LIHTC-financed projects. The report describes the two approaches for investing in LIHTCs: direct investments in individual affordable housing projects and fund investments that have multiple projects managed by third parties. The report outlines risks and regulatory considerations of LIHTC investments and describes how these investments would be considered under the Community Reinvestment Act.

New Markets Tax Credit (NMTC) ResourcesShow

The New Markets Tax Credit (NMTC) Program was designed to leverage private capital to spur economic development in urban and rural low-income communities. Within the U.S. Department of the Treasury, the Community Development Financial Institutions Fund (CDFI Fund) and the Internal Revenue Service (through Section 45D of the Internal Revenue Code) jointly administer the program. The NMTC Program has become an important tool for promoting economic development and community revitalization strategies in low-income markets.

Federal Resources

Internal Revenue Service

  • New Markets Tax Credit Guide
  • New Markets Tax Credit Tax Regulation 26 CFR 1.45D-1

The US Department of the Treasury

  • Community Development Financial Institutions (CDFI) Fund

The Treasury Department's CDFI Fund, established by the Riegle Community Development and Regulatory Improvement Act of 1994, expands the capacity of financial institutions to provide credit, capital, and financial services to underserved populations and communities in the United States. The CDFI Fund is the administrator of the NMTC Program. TheNMTC Programwebsite provides information on the program, including eligibility and application materials.

Industry Organizations and Professional Associations

CDFI CoalitionThe coalition represents community development financial institutions (CDFI) nationwide. CDFIs often work in partnership with banks to develop innovative ways, including NMTCs, to deliver loans, investments, and financial services to distressed communities.

New Markets Tax Credit CoalitionThe coalition is a national membership organization that promotes increased economic activity in low-income urban and rural communities through the NMTC Program. The coalition carries out action-oriented research, policy review and analysis, technical assistance and lobbying in support of the NMTCs.

Novogradac New Markets Tax Credit Resource CenterThe center provides news, facts and figures, federal and state guidance, research and reports, a mapping tool and other resources on the NMTC Program.

The following case studies are examples of typical NMTC projects.

  • Enterprise Community Investment: Examples of NMTC investments
  • New Markets Tax Credit Coalition: Reports and case studies on NMTC projects.
  • New Markets Tax Credit Impacts: Self-help case study from Durham, N.C.

OCC Resources

Community Developments Insights Report: New Markets Tax Credits: Unlocking Investment PotentialThis report examines the primary risks, benefits, and regulatory considerations associated with NMTCs. The report also discusses the ways in which bank investors have structured and managed these credits effectively. Banks have been active participants in the NMTC Program because of the ability to generate competitive economic returns, and the opportunities they present for positive Community Reinvestment Act consideration.

Revitalizing Communities Using the Public Welfare Investment Authority VideoThis brief video describes the OCC's role in administering the public welfare investment authority and encouraging participation in the NMTC Program.

Opportunity ZonesShow

An opportunity zone is an economically distressed area designated by the U.S. Department of the Treasury to attract private investment from qualified opportunity funds (QOF). A QOF is an investment vehicle that is set up as either a partnership or corporation for investing in eligible property in an opportunity zone. Monies invested in QOFs can help spur economic development and create jobs in these distressed areas.

Federal Resources

Internal Revenue Service

  • Opportunity Zone Frequently Asked Questions
  • Investing in Qualified Opportunity Funds

CDFI Fund

  • Opportunity Zone Resources

Industry Organizations and Professional Assistance

Economic Innovation GroupThe Economic Innovation Group (EIG) is a national leader in bringing geographic inequality into the national conversation, analyzing the decline in economic dynamism, and developing ideas that strengthen the foundations of our economy. The organization produces maps, research, and webinars on how the opportunity zone tax incentive is being used in the United States.

Beeck Center Inclusive Community Impact InvestingThe Beeck Center teamed with the Centre for Public Impact to launch Opportunity to Impact: An Investment Assessment Tool and published threeImpact in Action Case Studiesillustrating usage of the Beeck CenterGuiding Principles and Impact Reporting Framework. The tool seeks to increase positive social, economic, and environmental impacts in underserved communities by helping project sponsors define steps for impact and access resources to increase that impact.

Urban Institute Opportunity ZonesThe Urban Institute has conducted research, analyzed data, and developed animpact assessment toolfor opportunity zone investments.

OCC Resources Relating to Opportunity Zones

  • Community Development Fact Sheet: Opportunity ZonesThis fact sheet explains certain aspects of opportunity zone investments and discusses how opportunity zone activities may be used to support a bank's community and economic development strategies.
  • Community Development Investments: Strengthening Communities with Opportunity Zone InvestmentsThis newsletter explains how banks can support distressed communities by making investments in tax-advantaged qualified opportunity funds as part of their community development strategies.

Renewable Energy Tax Credit ResourcesShow

This resource guide provides easy access to information on national organizations and programs that encourage investment in renewable energy production. Use the resource guide to explore tax incentives and technical assistance sources for investing in renewable energy facilities.

Federal and State Resources

TheU.S. Department of Agricultureoffers a variety of rural development energy programs.

TheU.S. Department of Energyhas numerous programs to promote energy efficiency. Visit these two websites for more information:

  • Energy-Related Tax Credits
  • Renewable Energy

The U.S. Department of Housing and Urban Development Office of Environment and Energy describes energy initiatives and policies.

TheU.S. Energy Information Administrationoffers statistical information and analysis regarding renewable energy.

Database of State Incentives for Renewables & Efficiencyis a comprehensive source of information on federal, state, local, and utility incentives that promote renewable energy and energy efficiency.

Industry Organizations and Professional Associations

American Solar Energy SocietyThe association comprises solar professionals and advocates.

American Clean PowerThe association strives to transform the U.S. power grid to an affordable, reliable and clean power system.

Edison Electric InstituteThe institute provides information about various energy efficiency and low-income energy assistance programs offered by utility companies.

Novogradac Renewable Energy Tax Credit Resource CenterThe center offer information on Internet Revenue Service rulings, legislation, studies and reports, and news on renewable energy tax credits.

Alternative Energy NewsThis resource provides articles about renewable energy, and new technologies intended to help civilization use energy and natural resources in a more sustainable and efficient way. The Renewable Energy Markets Association represents organizations that sell, purchase, or promote renewable energy products.

Solar Energy Industry AssociationThe association represents the U.S. solar energy industries.

Solar Electric Power AllianceThe alliance represents electric utilities, solar companies, and other companies with an interest in solar electricity.

Legislation and Regulation

26 USC Section 48, Legislation authorizing investment tax credit for renewable energy facilities.

  • Form 3468, Investment Credit: Internal Revenue Service Form 3468 to claim investment tax credit

26 USC Section 45, Legislation authorizing production tax credit from renewable energy sources.

  • General Instructions for Claiming Credit

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