posted 03/24/11 | Wealth Management
By: Abigail Kepple, Vice President - Relationship Manager
Enterprise Bank & Trust offers Missouri Low Income Housing Tax Credits (LIHTC) for purchase by our high net worth clients and prospects. The purchasers purchase the credits at a discount and then use it to offset their MO state tax liability.
Enterprise has acquired the tax credits as a result of our investment in over 30 low income housing projects in the state of Missouri. We view these credits not only as a sound investment for us and our clients but also as an investment in the communities these projects support.
Clients, prospects and friends of Enterprise can purchase the credits at $0.92 for each $1.00 of credit. This averages out to a return to the client between 6-8%, excluding any fees paid to the tax preparer for completing and filing the return. Enterprise is currently selling our 2010 Tax Credit inventory. The credits must first be used for the 2010 tax liability, but then they can be carried back 3 years ('07,'08,'09) or carried forward 5 years.
The minimum amount of credits that can be purchased is $100,000. In order to qualify to purchase, the purchaser must be identified as an accredited investor, with a net worth of $1,000,000 or sustained annual income of $300,000. Purchasers can be individuals (most common), S and C Corporations and Trusts.
Credits are sold on a first come first served basis. The deadline is April 1st for any purchase requests that need to be fulfilled by April 15th! You will want to get your accountant, CPA or tax preparer involved if this is something you would like to discuss further.
If you are interested in the MO Low Income Housing Tax Credits, please contact an associate in Wealth Management or Abby Kepple directly at 314.512.7209 or akepple@enterprisebank.com.