The American Tax Relief Act of 2012 included a number of real estate/sustainability provisions. They are as follows:
- New markets tax credit. The Act extends through 2013 the new markets tax credit, permitting a maximum annual amount of qualified equity investments for 2012 and 2013 of $3.5 billion each year.
- Extension of tax incentives for the New York Liberty Zone. The Act extends through December 31, 2013, the time for issuing New York Liberty Zone bonds.
- Low-income housing tax credit program. The Act extends the minimum low income housing credit rate of 9% by changing the deadline to projects that have received an allocation before January 1, 2014.
- Depreciation of certain real property improvements. The Act extends retroactively from January 1, 2012, through December 31, 2013, the 15-year cost recovery period for certain leasehold improvements, restaurant buildings and improvements, and retail store improvements that are placed in service before January 1, 2014.
- Empowerment zones. The Act extends for two years, through December 31, 2013, the designation of certain economically depressed census tracts as "empowerment zones." Businesses and individual residents within "empowerment zones" are eligible for special tax incentives.
- Extension and increase in authorization for Qualified Zone Academy Bonds. The Act extends the Qualified Zone Academy Bonds (QZABs) program, for calendar years 2012 and 2013, providing $400 million in bond volume per year. QZABs are a form of tax credit bond that offers the holder a federal tax credit instead of interest.
- Treatment of RIC investments as "qualified investment entities" under FIRPTA. The Act extends retroactively from January 1, 2012, through December 31, 2013, the inclusion of a RIC within the definition of a "qualified investment entity" under the Foreign Investment in Real Property Act (FIRPTA) rules.
Later this week, we will cover the Energy Provisions of the Act.
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