Debt, Deals & Directors: What’s Shaping the Tax Credit Market Now

In Episode 3 of Tax Credit Talks, hosts Hallie James and Parker An break down the overlapping economic pressures and policy changes reshaping the tax credit market. From surging federal debt and shifting investor sentiment to state-level proposals and HUD policy updates, this episode explores how national trends are hitting project feasibility across housing, energy, and film finance.

What We Covered:

• Federal debt is dampening investor appetite
  Annual U.S. interest payments have surpassed $1 trillion. Economic leaders like Ray Dalio and Jamie Dimon are warning of long-term instability. That uncertainty impacts tax equity markets directly, driving up return expectations and reducing available capital for affordable housing and renewable energy projects.
• Work requirements could undermine LIHTC property performance
  Proposals to attach work requirements to programs like Medicaid and SNAP could disqualify many low-income tenants from assistance. Since LIHTC properties are designed to serve those same tenants, the result could be higher turnover, more compliance challenges, and less stable cash flow.
• Nevada’s $1.4 billion film tax credit proposal
  Assembly Bill 238 proposes up to $95 million in transferable film credits annually for 15 years, tied to the development of Summerlin Studios in Las Vegas. The bill passed the Nevada Assembly narrowly and is now awaiting action in the Senate.
• HUD proposes rescinding affirmative marketing regulations
  HUD has issued a proposed rule to remove the requirement for Affirmative Fair Housing Marketing Plans for certain FHA-insured and HUD-assisted multifamily properties. Public comments are due by July 3.

Key Takeaways:

• Tax equity investors are becoming more cautious as federal debt levels rise and bond market uncertainty increases.
• Policy shifts in Medicaid and SNAP could destabilize tenant populations and increase project risk in LIHTC developments.
• State-level incentives like Nevada’s film credit proposal demonstrate new strategies for attracting long-term investment.
• Regulatory changes at HUD signal a shift in federal housing compliance standards that developers should monitor closely.

Final Thoughts:

From macroeconomic uncertainty to highly targeted policy proposals, the tax credit landscape is facing a new wave of complexity. Whether you are placing credits, structuring deals, or advocating for stability, understanding these layered developments is essential to moving forward.

Listen to the full episode: Debt, Deals & Directors: What’… – The Tax Credit Talk – Apple Podcasts
To connect with our team, email team@fallbrookfinance.com with the subject line “Tax Credit Talks.”

Fallbrook Financial Services is one of the largest state tax credit brokerages in the country. With more than $6 billion in credits placed across renewable energy, housing, film, brownfields, and more, we are here to help you put your credits to work.