Circuit Court Reverses Tax Court Opinion On Historic Boardwalk Case

摘要

The U.S. Court of Appeals for the 3rd Circuit filed has issued an opinion overturning the U.S. Tax Court's Jan. 3, 2011 decision on Historic Boardwalk Hall (HBH) v. IRS Commissioner. The 3rd Circuit Court found that the project's historic tax credit (HTC) equity investor, Pitney Bowes Inc., was not a bona fide partner in HBH because it lacked a meaningful stake in the project's success or failure. The court remanded the case for further proceedings consistent with its opinion. This case could have significant implications on how tax credit transactions are structured going forward.