Investment Products

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
  • 2009 (Wind)
  • 2010(Geo, Biomass)
  • Note: §45 historically renewed in 1-2 year increments
Primary Return Components
  • Tax Credits
  • Deductions
  • Tax Credits
  • Cash Flow
  • Residual
  • Tax Credits
  • Deductions
  • Cash Flow
  • Residual
  • Tax Credits
  • Deductions
  • Cash Flow
  • Residual
  • Tax Credits
  • Deductions
  • Cash Flow
  • Residual
CRA Yes Yes Possible Low Possibility Low Possibility
Risk/Return Profile*
  • Low
  • Low
  • Low to Moderate
  • Moderate (Solar)
  • High (Fuel Cells)
  • Low to Moderate (Wind)
  • Moderate (Geo)
  • High (Biomass)
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

Fact

Since its inception in 1986, the Low Income Housing Tax Credit (LIHTC) program has helped meet U.S. affordable housing demands by stimulating the production of nearly 2.4 million affordable homes and supporting an estimated 95,000 jobs annually.

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