The Tax Man Cometh - Bearing Gifts

One of the greatest burdens on developers is taxes which is why the government devised the tax credit.  This is often a dollar for dollar credit toward a developers taxes based on certain criteria.  These tax credits are also sometimes sold to corporations as a way to fund a project.  One type of tax credit is the historic or rehabilitation tax credit.  The purpose of this tax credit is to encourage property owners to bring their buildings up to current standards and to help revitalize areas with these older buildings.  Texas state credits for cleaning brownfields helps communities see revitalization of vacant industrial areas, often sites of vandalism and crime.  The Community Recovery and Enhancement Act to provide short term tax incentives to help encourage commercial investors to step back into the market.  There is also a growing thrust on eco/sustainable real estate with everything from urban repurposing to green building being eligible for tax credits.  While it is counter intuitive, the tax man may have become a Santa Claus figure to some investors interested in developing specific types of real estate properties.