Efficient Capitalization of Tax Credits

Tax Credit Capital, LLC (“TCC”) was formed in 2002 to provide developers of projects generating federal and state historic tax credits the ability to monetize the tax credits, creating much needed equity. George E. Brower II, formerly a principal at Howard Weil, a division of Legg Mason, is the Managing Member of TCC. He has significant experience in the tax credit industry, having established the Tax Credit Department at Howard Weil in 1990 and creating significant growth in that area of the firm.

TCC provides a full range of services for developers of larger projects generating federal historic tax credits. It has relationships with several institutional investors and has placed nearly $150,000,000 in federal credits generating approximately $140,000,000 in equity. TCC further works with developers to determine those rehabilitation expenditures that qualify for historic tax credits, potential financing options and the preparation of financial projections which reflect the agreed upon deal terms.

TCC found that developers of smaller projects generating federal historic credits had difficulty finding an equity investor.  In order to fill this need, TCC established the Small Deal Fund in November of 2002. The firm also established TCC Historic Tax Credit Fund VI in 2006 to meet the needs of clients whose projects did not meet the threshold investment requirements for traditional tax credit investors, but were too large for the Small Deal Fund. Fund VI was a $10,000,000 fund that is now fully specified and closed. As a result of the success of that fund, TCC Historic Tax Credit Fund VII was created in 2007 and is currently accepting applications. John Bowman, Jr. serves as president of each of the federal funds.

In addition, the firm manages the following state historic tax credit funds:

As new state legislation has been enacted for various other types of tax credits, TCC has grown in an effort to accommodate the market.  It has worked with the Conservation Credit in Virginia, and is currently working with Green Credits in numerous states. TCC has further played an active role in numerous states that offer incentives to the film industry, and operates film tax credit funds in Louisiana and Rhode Island. As a result of the success of the film incentive program, Louisiana is now the third largest producer of film and television behind only Los Angeles and New York.