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The Investment

Boston Capital Corporate Tax Credit Funds are designed to provide Institutional Investors with federally mandated tax credits, which provide an AMT exempt dollar-for-dollar reduction in tax liability, and with tax savings through passive losses generated by investments in affordable housing.

Corporate Tax Credit Fund Structure

The Partnerships invest in operating partnerships that own and operate affordable housing properties that qualify for the Federal Low Income Housing Tax Credit. 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 reporting to the necessary state and federal agencies, budgeting, collecting rents, cash management and contracting for the preparation of property-level financial and tax statements.

The investment 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 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 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; and
• Preserve and protect the assets of the investment partnerships.

Fund Size

The typical multi investor national fund size is approximately $150 - $200 million. Individual proprietary funds can be structured and sized to meet each investor's unique criteria.

If you would like more information on Boston Capital corporate investment opportunities, please click here to contact Kevin Costello or Guy Hubschman.