Tax Credit Marketplace announces $10 million 2017 Fund closing

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February 20, 2018
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Greenville, SC-based Tax Credit Marketplace, LLC (“TCM”) announces the successful closing of the 2017 SC Revitalization Tax Credit Fund, LLC (“2017 Fund”).

The 2017 Fund invested in 13 qualifying development projects in 7 different regions of South Carolina. The projects’ collective development costs exceeded $60 million, generating over $10 million in SC income tax credits.  The 60 investors in the 2017 Fund utilized these tax credits to reduce their SC tax liability. The 2017 Fund included projects from multiple asset classes, including retail, office, event space and mixed use. In addition to state credit projects, TCM also invested in Federal Historic credit projects in 2017.

“TCM has multiple projects under review for its 2018 and 2019 funds and is currently seeking additional qualifying projects statewide in which to invest,” according to Josh Workman, Chief Operating Officer and Fund Manager for TCM. “Based on an increasing investor demand, recent tax law changes and development momentum, we anticipate the 2018 and future funds to be significantly larger,” says Workman.

Developers and property owners understand that they can create a competitive advantage by properly utilizing the SC Revitalization Acts (“Acts”) and Federal Rehabilitation Tax Credits to attract additional capital for their projects. These projects often generate more Tax Credits than a developer or property owner can personally utilize.  TCM is able to offer developers/property owners the opportunity to monetize these excess Tax Credits, resulting in additional project cash flow that would otherwise be missed.

The South Carolina Acts encourage private investment to alleviate adverse real estate conditions such as abandoned and historic buildings.  The Acts also make it easier for developers and communities to enhance nearby property values, create local jobs, and form the “sense of place” that has become such an important factor in deciding where we live, work and play. Effectively, South Carolina has decided to underwrite the rebirth and redevelopment of its cities and towns.

State and Federal tax credit statutes have recently changed. The most notable changes are rules regarding Federal and State Historic credits, and the repeal of the Retail Act. According to Workman, “It’s important for developers to understand these changes and how their ‘on the board’ projects may be impacted. We help developers navigate the rules and the marketplace to bring the most benefit to their projects”.