The Broker’s Role in Structuring LIHTC and ITC Deals

Understanding LIHTC and ITC

Low-Income Housing Tax Credits (LIHTC) and Investment Tax Credits (ITC) are valuable incentives for investors, but they require careful structuring to maximize benefits. A Tax Credit Broker plays a central role in bringing together buyers, sellers, and other stakeholders to ensure these deals are both profitable and compliant. Whether it’s a housing development or a renewable energy project, a Tax Credit Broker ensures the structure meets financial and regulatory requirements.

How a Tax Credit Broker Structures LIHTC Deals

Sourcing Credits

A Tax Credit Broker identifies available LIHTC credits by working with developers and housing authorities. Their network allows the Tax Credit Broker to find opportunities early and negotiate favorable terms.

Aligning with Investor Goals

The Tax Credit Broker evaluates the investor’s tax liability and desired returns to structure a deal that maximizes savings while supporting affordable housing projects.

Managing Compliance

Because LIHTC deals involve federal and state oversight, a Tax Credit Broker ensures all compliance documentation is accurate and submitted on time.

How a Tax Credit Broker Structures ITC Deals

Connecting with Renewable Energy Developers

A Tax Credit Broker maintains relationships with solar, wind, and other renewable energy developers to source ITC opportunities that match investor profiles.

Optimizing Financial Returns

The Tax Credit Broker structures agreements that maximize the investor’s credit value while ensuring project viability and long-term performance.

Overseeing Transaction Details

From contract negotiation to closing, a Tax Credit Broker coordinates with legal, financial, and technical teams to ensure a smooth process.

Benefits of Using a Tax Credit Broker for LIHTC and ITC Deals

Expert Navigation of Regulations

Both LIHTC and ITC deals involve complex rules. A Tax Credit Broker has the knowledge to avoid costly mistakes and keep deals on track.

Better Pricing and Terms

With market insight and negotiation skills, a Tax Credit Broker can secure credits at favorable rates, boosting overall ROI.

Time and Resource Savings

By managing the process, a Tax Credit Broker allows investors to focus on other priorities while still capitalizing on these incentives.

Why Structuring Matters in LIHTC and ITC Deals

Improperly structured deals can lead to compliance issues, reduced returns, or even disqualification from credit programs. A Tax Credit Broker ensures every aspect—from initial sourcing to final closing—is aligned with regulations and investor objectives.

Conclusion

A Tax Credit Broker plays a critical role in structuring both LIHTC and ITC deals. Their ability to source opportunities, align them with investor goals, and manage compliance makes them invaluable in these specialized markets. By working with an experienced Tax Credit Broker, investors can confidently navigate complex transactions, secure optimal pricing, and ensure long-term success in affordable housing and renewable energy investments.