Boston Capital Corporate Tax Credit Funds
Boston Capital Corporate Tax Credit Funds are designed to provide Suitable Investors with Federally mandated Tax Credits, which provide a dollar-for-dollar reduction in tax liability, and with tax savings through passive losses generated by investments in affordable housing.
The Partnerships intend to invest in Operating Partnerships that own and operate affordable housing properties that are expected to qualify for Federal Housing Tax Credits. Certain properties may also qualify for the Historic Rehabilitation Tax Credit. The Funds invest in Operating Partnerships owning Apartment Complexes throughout the United States. The Operating Partnerships are formed by local property developers to own and operate the Apartment Complexes. The Operating General Partner of each Operating Partnership will typically be the property developer who is responsible for the development, construction, supervision and the direct ongoing management of the property's operations, including preparing property-level financial and tax statements, reporting to the necessary state and federal agencies, budgeting, collecting rents, and cash management.
The Partnerships will invest as a Limited Partner or Member in the Operating Partnerships and will contribute the majority of the equity capital, with the remaining equity being contributed by the Operating General Partner. The Investment Partnerships will generally attempt to acquire a 99.99% interest in the profits, losses and Tax Credits of an Operating Partnership and a 10% - 50% interest in its available cash flow. In addition, the Investment Partnerships will attempt to acquire a 10% - 50% residual interest in the sale or refinancing proceeds of the assets of the Operating Partnership.Investment Objectives
- Each one unit investment in the Partnerships is expected to generate Tax Credits for Allocation to Corporate Investors over a 10-12 year period and tax losses that Suitable Investors may use to offset federal income tax liability and reduce taxable income;
- Preserve and protect the assets of the Investment Partnerships;
- Increase investor equity in the Apartment Complexes through amortization of mortgage indebtedness of the Apartment Complexes and potentially increase the value of the Apartment Complexes leading to cash distributions upon sale or refinancing of the Apartment Complexes.
The typical Fund size is approximately $100 million.