by Aninda DharGoogle recently became an LIHTC investor in California. The web giant partnered with Union Bank, a syndicator, to finance two affordable housing projects for seniors.
Why would a web company like Google be interested in LIHTC and developing real estate?
The answer is simple: Investments such as LIHTC improve Google's bottom line and demonstrate the company's concern for social welfare. Google's financial benefit stems from tax credits it receives for its investment. The tax credits are used to offset Google's tax liability. Additionally, Google's investment benefits the company's public profile as a socially conscious business entity. Such a public perception may also translate benefits for the company.
Importantly, Google's foray clearly demonstrates that the LIHTC program is not merely for traditional real estate investors or the usual players. Various members of the corporate diaspora may avail themselves of this program. To learn more about the LIHTC program and other tax credits that can benefit your company's bottom line and perception in the public eye, read our article that appeared in the Metropolitan Corporate Council.
If you have any comments or questions regarding this post, please contact Ken Weissenberg or Aninda Dhar.
