The Meridian team continually looks for ways to broaden our scope of tax-advantaged investment products and services. The following table provides an overview of available tax credit equity investment opportunities. To learn more about current tax-advantaged investment opportunities, please navigate through the menu on the left, or contact us for more information.
| Program | §42 Low-Income Housing Tax Credit |
§ 45D New Markets Tax Credit |
§47 Historic Rehabilitation Credit |
§48 Renewable Energy Investment Tax Credit |
§45 Renewable Energy Production Tax Credit |
| Form | Allocated | Allocated | Investment | Investment | Production |
| Purpose | Incent development of afford ablerental housing |
Incent economic development in under served areas | Incent preservation of historic buildings | Incent installation of solar and fuel cell power generation equipment | Incent production of renewable energy from wind, geothermal, and biomass |
| Inception | 1986 | 2000 | 1976 | 1980 (2005) | 1992 |
| Sunset | Permanent | 2009 | Permanent | 2016 |
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| Primary Return Components |
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| CRA | Yes | Yes | Possible | Low Possibility | Low Possibility |
| Risk/Return Profile* |
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| AMT Use | Yes | No | No | Yes | Yes – first 4 years |
| Carry Back /Forward |
1 Year/20 years | 1 Year/20 years | 1 Year/20 years | 1 Year/20 years | 1 Year/20 years |
| Credit Receipt Period | 10 years | 7 years | 1 year | 1 year | 10 years |
| Recapture | 15 years | 7 years | 5 years | 5 years | None |
| Annual Market Size | $9-10 billion | $1 billion | $0.5-$1 billion | $0.5-$1 billion | $6-8 billion |
| Annual Credit Volume Cap | $2.20 per capita | $3.5 billion in 2007 & 2008 | None | None | None |
| Credit Rate | 4% or 9% of property expenditures | 5% of equity investment in years 1-3, 6% in years 4-7 | 10% or 20% of rehabilitation expenditures | 30% of cost of renewable equipment | 2.1¢ / kwh of energy sold, indexed for inflation (1.0¢ biomass) |
| Credit Base | Development expenditures times % of low-income tenancy | Equity investment amount | Rehabilitation expenditures | Expenditure on solar equipment | Energy production |
| Basis Reduction | No | Yes – by amount of credit | Yes – by amount of credit | Yes – 50% | No |