Tax Incentive Programs

The recently passed "One Big Beautiful Bill" (OBBB) introduces substantial tax benefits, creating valuable opportunities for family offices and real estate investors focused on preserving and growing wealth. Understanding and acting on these changes can significantly improve your investment strategy and offer lasting financial advantages: • Permanent 20% QBI Deduction: Provides long-term tax savings for pass-through entities, increasing profitability and investment potential. • Permanent 100% Bonus Depreciation: Enables immediate deductions on property improvements and tangible assets, significantly improving cash flow. • Increased Estate and Gift Tax Exemption: Exemption limits have increased to $15 million per individual ($30 million per couple), simplifying the transfer of generational wealth. • Expanded SALT Deduction: The limit for State and Local Tax (SALT) deductions, including property and income taxes, rises from $10,000 to $40,000 starting in 2025. Full benefits apply only to individuals with modified adjusted gross income (MAGI) below $500,000 (or $600,000 for joint filers). Above those levels, the deduction gradually phases out, ultimately reverting to $10,000 once income reaches approximately $600,000. • Enhanced Affordable Housing Incentives: A 12% increase in Low Income Housing Tax Credits makes affordable housing investments more financially attractive. Investors can achieve stronger yields while contributing to community development and meeting ESG objectives. These provisions offer more than incremental tax savings. They create strategic financial opportunities for real estate investment and wealth transfer planning. Are you prepared to take full advantage of these new tax opportunities? Now is an ideal time to review your investment and estate strategies. Taking action today can secure financial benefits for years to come.

🎬 FILM FINANCING 101: Tax Incentives – "Hitting the Bullseye" - Free Money That’s Anything But Simple Tax incentives are one of the most powerful tools in film financing - often covering 20–40% or more of a production’s qualified spend. They can reduce your equity ask, improve investor ROI, and unlock otherwise unreachable budgets. But incentives are also complex, vary by location, and come with critical strings attached. Here’s what producers need to understand: ✅ Credits, Rebates & Grants – Know the Difference - Transferable tax credits (e.g. Georgia, Illinois): These can be sold to third parties for upfront cash. - Refundable credits (e.g. Canada, New Mexico): The government sends you a check after audit (tied to taxes). - Cash grants (e.g. Texas, select EU regions): Paid out by a government fund after compliance review (not tied to taxes). ➡️ All of these can be cash-flowed during production using gap lenders - but only if your paperwork, timing, and state approvals are in order. ✅ Location Matters – But So Does Infrastructure States and countries with aggressive incentives often lack the crew depth, gear houses, or post infrastructure to support a full-scale production. 🔥 A 35% rebate sounds great - until you’re importing half your team, blowing the travel budget, or losing time to local inexperience. Savvy producers do the math: the rebate must beat the additional logistical cost, or you’re upside down. ✅ Texas as a Case Study (Starting Sept 2025) New program under SB 22 includes: – 5–25% base cash grant depending on spend level – Up to +6% in bonuses for veteran hires, rural regions, in-state post, and more – Total possible return: ~31% ⚠️ However, it requires TX-based crews, limits adult content, and only pays after production - like most U.S. programs. ✅ International Can Go Bigger - But With Hurdles Countries like Portugal, Hungary, Canada, and Colombia offer 25–50% back, but often require: – Co-production partners – Local spending minimums – Cultural content qualifications – Extended payment timelines and audits Currency risk, legal costs, and repatriation issues must be factored in. 💡 Bottom Line Tax incentives are real money - but not free money. They require smart budgeting, early planning, legal strategy, and local execution. Know the rules. Plan the structure. And don’t chase rebates into a production trap. Next up: Pre-Sales – When Territory Buyers Bet on Your Cast, Not Your Script Note: Every deal is different and incentives constantly change, do your research! #FilmFinance #TaxIncentives #Producing #FilmBudgeting #EntertainmentBusiness #IndependentFilm #CreativeProducing #DesertPirateProductions #GapFinancing #FilmInvestors

You don’t need massive capital to win in real estate. Just the wisdom to use incentives already built into the system. When others leave free money on the table. Because profitable investing isn’t always about doing more. It’s about leveraging what’s already available. Most overlook incentives. Few use them as a true wealth multiplier. Smart investors think like this: 1. From Ignoring → To Knowing Your Incentives Never, Later, Now — understand where each project stands. Patience and paperwork pay when you know the rules. 2. From Myths → To Real Opportunity Incentives aren’t only for big developers. Many programs support small and mid-size investors with fast, streamlined approvals. 3. From Out-of-Pocket → To Tax Credits Dollar-for-dollar savings boost ROI. Historic rehab. Renewable energy. Opportunity zones. 4. From Full Cost → To Cash Grants Use direct payments to reduce upgrade budgets. Energy efficiency and community development often pay quickly. 5. From High Interest → To Low-Cost Capital Government-backed loans cut borrowing costs dramatically. FHA, HUD, USDA, state and local programs. 6. From Heavy Taxes → To Abatements Freeze or reduce property taxes for years. Essential for new builds and redevelopment zones. 7. From Paying for Everything → To Infrastructure Support Cities often fund roads, sidewalks, and utilities. Your build cost drops immediately. 8. From Limits → To Zoning Bonuses Build more units or go higher when you provide public benefits. Affordable housing, green building, and more. 9. From Guessing → To Verified ROI Use a clear checklist: eligibility, timelines, safety, local programs, and documented savings. Because incentives aren’t small perks. They’re profit accelerators. When you combine smart projects with public programs, your ROI doesn’t just grow… It multiplies. Follow me Marc Henn for more. We want to help you Retire Early, Supercharge Your Cash Flow, and Minimize Taxes. Marc Henn is a licensed Investment Adviser with Harvest Financial Advisors, a registered entity with the U. S. Securities and Exchange Commission.

The Cyprus Parliamentary Committee on Financial and Budgetary Affairs has highlighted the urgent need for compensatory measures to safeguard Cyprus’s competitiveness and prevent MNEs from relocating. This comes in response to the EU Directive implementing a 15% global minimum effective tax rate under Pillar Two. The concern is that popular tax incentives, such as the IP Box and NID regimes, may lose their appeal under these new rules. A potential roadmap for adapting to this challenge can be found in the 2022 OECD report, "Tax Incentives and the Global Minimum Corporate Tax: Reconsidering Tax Incentives after the GloBE Rules." The report suggests practical solutions that Cyprus and other jurisdictions can consider to align tax policy with the evolving global framework: Key Takeaways from the OECD Report: 👉 Deferred Tax Payment Incentives Tax incentives that defer tax payments into the future, such as immediate expensing (100% first-year allowance) or accelerated depreciation of tangible and short-lived intangible assets, are generally less likely to trigger top-up taxes under the GloBE rules. 👉 Qualified Refundable Tax Credits These are more resilient under Pillar Two compared to nonrefundable credits. For instance, Ireland’s recent increase in its R&D tax credit (from 25% to 30%) aligns with the Pillar Two definition of "qualified refundable tax credits" and demonstrates how incentives can be adapted for compliance. Ideas for converting existing incentives into new incentives: 👉 IP Box Regime Adjustments To preserve the benefits of the Cyprus IP Box regime, further amendments may be necessary to ensure it meets the “qualified refundable tax credit” definition. Such changes would help sustain its viability as an effective incentive under the new rules. 👉 Ideally, such expenditure-based incentives (e.g. immediate expensing and accelerated depreciation) should be in line with the Pillar 2 carve-out, namely SBIE which reflects the scale of economic substance, i.e. payroll and tangible assets. In this way, such tax incentives that are linked to the size of economic substance would be more resistant to the Pillar 2 Rules. Cyprus must take proactive steps to modernize its tax incentives to remain attractive while adhering to global standards. Collaboration among policymakers, businesses, and tax professionals is crucial to ensure the IP Box regime and other incentives continue to drive investment and innovation in a compliant manner. What other measures or strategies could Cyprus explore to stay competitive under the new tax regime? Let’s discuss! The OECD report can be found at the link below https://lnkd.in/dDYp6r-g

Live Local changes could propel workforce housing boom in South Florida: Gov. Ron DeSantis recently signed the amendments into law, reports The Real Deal #Florida is short nearly 450,000 homes for extremely low-income #renters, according to an estimate from LandTech, using data from the National Low Income Housing Coalition. The issue is more acute in South Florida. Miami-Dade County is lacking 90,181 units for households earning below 80 percent of the area median income, which comes out to about $75,000 a year, a report from Miami Homes For All found. Lawmakers in Tallahassee aimed to tackle the issue last year with the passage of the #LiveLocalAct, a law that set aside more than $700 million in funding and created tax and zoning incentives for developers if they set aside a portion or all of their projects for residents making up to 120 percent of the area median income. During the past session that ended in April, Florida lawmakers voted to pass an amendment bill that will, among other points, create a mechanism for a property tax exemption for up to 75 percent of the assessed value of the #workforce units in a project that also has market-rate units. It provides a property tax exemption of up to 100 percent if the entire project is workforce housing. This alone could spur the construction of hundreds, if not thousands, of units, developers say. Developer Asi Cymbal of Cymbal DLT Companies is already taking advantage of the property tax benefit at Laguna Gardens, a 341-unit garden-style apartment complex in Miami Gardens. The 14-acre development was completed in April. Cymbal’s Cymbal DLT Companies began construction before Live Local was signed into law, but all of the units are for households earning at or below 120 percent AMI. That means rents start at about $2,000 a month for 650-square-foot one-bedroom apartments. Cymbal said demand has been very high. The ad valorem tax incentive allows Cymbal DLT to “artificially keep rents low.” “In South Florida, those property taxes are substantial. That’s what makes this program work for us, without increasing density or changing the zoning, to provide for more attainable luxury housing to a broader swath of our workforce,” he says. The Live Local Act bill, which first became law in 2023, remains one of the most aggressive attempts to tackle housing affordability at the state level. Thanks to an influx of new residents during the pandemic, housing costs across Florida skyrocketed. Miami-Dade County alone lacks 90,181 rental units for those earning less than $75,000 annually, according to nonprofit Miami Homes For All. “If we can’t find a way to house our workforce in a way where we don’t disconnect them from the best locations for employment, then we’re going to have issues. That’s going to kind of be our Achilles’ heel,” says Anthony De Yurre, Esq, LLM, an #attorney at Bilzin Sumberg who helped write the Live Local Act. Schwartz Media Strategies

I’ve recently come across some well-designed state-level programs that use tax abatements to encourage affordable housing. The concept itself isn’t new, but what stands out is how these programs let developers opt in at a level that makes sense for their project’s underwriting—receiving a tax abatement directly proportional to the percentage of affordable units they provide. Here’s how it works: If a developer rents 30% of a property’s units at 80% of Area Median Income (AMI) levels, they receive a 30% tax abatement. Rent 50% of units at 80% AMI, and the abatement increases to 50%. This structure allows developers to balance affordability with financial feasibility, rather than forcing an all-or-nothing approach. But additionality is key—if an operator was already leasing those units at 80% AMI, the tax break isn’t actually creating new affordability. And in my experience underwriting these deals, once the income restrictions drop to a lower level (e.g. 50-60% AMI), the rents are often too low for the project to make sense, even with the abatement—though this varies by market. Another smart design choice? Keeping the reporting requirements simple. If operators only need to verify that units are leased at 80% AMI rent levels—without extensive tenant income certification—it removes a major barrier to participation. Programs like these can be a win-win, but the details matter. When structured well, they create real, additional affordable housing—not just a tax break.

𝐓𝐇𝐄 𝐓𝐀𝐗 𝐑𝐄𝐅𝐎𝐑𝐌 𝐁𝐈𝐋𝐋𝐒 𝐖𝐈𝐋𝐋 𝐁𝐄𝐍𝐄𝐅𝐈𝐓 𝐍𝐈𝐆𝐄𝐑𝐈𝐀𝐍 𝐖𝐎𝐑𝐊𝐄𝐑𝐒   We outline below some of the key provisions of the tax bills aimed at improving the welfare of workers:   𝑳𝒐𝒘𝒆𝒓 𝒕𝒂𝒙𝒆𝒔 𝒕𝒐 𝒆𝒏𝒉𝒂𝒏𝒄𝒆 𝒕𝒉𝒆 𝒅𝒊𝒔𝒑𝒐𝒔𝒂𝒃𝒍𝒆 𝒊𝒏𝒄𝒐𝒎𝒆 𝒐𝒇 𝒘𝒐𝒓𝒌𝒆𝒓𝒔 -   1) Full exemption for workers earning up to N1.3m p.a. (over N100k per month) representing not less than 35% of all workers in the private and public sectors from PAYE tax   2) Reduced PAYE tax for workers earning up to N20m p.a. (about N1.7m per month) benefiting additional 60% of all workers   3) Full PAYE tax exemption for members of the armed forces 𝑴𝒆𝒂𝒔𝒖𝒓𝒆𝒔 𝒕𝒐 𝒓𝒆𝒅𝒖𝒄𝒆 𝒕𝒉𝒆 𝒄𝒐𝒔𝒕 𝒐𝒇 𝒆𝒔𝒔𝒆𝒏𝒕𝒊𝒂𝒍 𝒊𝒕𝒆𝒎𝒔 -   4) Zero (0%) VAT on food, healthcare, and education representing about 60% of all consumptions   5) VAT exemption on rent, transportation, renewable energy, CNG, baby products, sanitary towels, and fuel products representing over 20% of all consumptions   These items constitute an average of 82% of household consumption and nearly 100% for low income earners to cushion the impact of rising cost of living for workers.   𝑰𝒏𝒄𝒆𝒏𝒕𝒊𝒗𝒆𝒔 𝒕𝒐 𝒇𝒂𝒄𝒊𝒍𝒊𝒕𝒂𝒕𝒆 𝒉𝒊𝒈𝒉𝒆𝒓 𝒄𝒐𝒎𝒑𝒆𝒏𝒔𝒂𝒕𝒊𝒐𝒏 𝒇𝒐𝒓 𝒘𝒐𝒓𝒌𝒆𝒓𝒔 - 6) Tax break for wage awards and transport subsidy to low-income earners   7) Removal of restrictions and bureaucratic approvals for wage awards   8) Introduction of a cap on the amount that may be taxed as benefit in kind granted to workers   𝑻𝒂𝒙 𝒘𝒂𝒊𝒗𝒆𝒓𝒔 𝒕𝒐 𝒑𝒓𝒐𝒎𝒐𝒕𝒆 𝒂𝒇𝒇𝒐𝒓𝒅𝒂𝒃𝒍𝒆 𝒉𝒐𝒖𝒔𝒊𝒏𝒈 - 9) VAT exemption on rent and acquisition of real property   10) Exemption of stamp duties on rent below N1m   𝑰𝒏𝒄𝒆𝒏𝒕𝒊𝒗𝒆𝒔 𝒕𝒐 𝒔𝒕𝒊𝒎𝒖𝒍𝒂𝒕𝒆 𝒆𝒎𝒑𝒍𝒐𝒚𝒎𝒆𝒏𝒕 𝒐𝒑𝒑𝒐𝒓𝒕𝒖𝒏𝒊𝒕𝒊𝒆𝒔 𝒇𝒐𝒓 𝒘𝒐𝒓𝒌𝒆𝒓𝒔 -   11) Tax incentives for employers to hire more workers   12) Friendly tax rules to attract international remote work opportunities for Nigerians   13) Tax exemption for 97% of SMEs earning annual turnover of N100m or less, harmonisation and reduction of corporate tax burden for large businesses to stimulate growth and create more employment opportunities for workers.   These changes deserve to be supported by everyone who seeks the well-being of Nigerian workers. We believe that the NLC and the TUC will not intentionally work against the interest of their members.   Happy belated workers’ day! -- 𝘗𝘳𝘦𝘴𝘪𝘥𝘦𝘯𝘵𝘪𝘢𝘭 𝘍𝘪𝘴𝘤𝘢𝘭 𝘗𝘰𝘭𝘪𝘤𝘺 & 𝘛𝘢𝘹 𝘙𝘦𝘧𝘰𝘳𝘮𝘴 𝘊𝘰𝘮𝘮𝘪𝘵𝘵𝘦𝘦

Turkey just announced the most aggressive incentive package I've ever seen for mobile app businesses. Effective today. 🇹🇷 Here's what's now on the table: → 50% refund on App Store & Google Play commissions (up to $450K/year) → 4% corporate tax for tech exporters → Up to $1.2M/year in UA and digital marketing support → 50% of your cloud and server costs covered ($115K/year) → 50% support on analytics tools like Adjust, Sensor Tower, RevenueCat ($57K/year) → 100% income tax exemption on developer salaries in tech zones → Employment support for both local and overseas staff → Support for up to 25 international offices Everything used to be scattered across different programs. Now it's all under one system. Turkey has already produced three gaming unicorns. Peak Games ($1.8B exit to Zynga), Dream Games ($5B valuation), and Loom Games ($1B+ acquisition by Scopely, founded in 2025). For a lean studio running 5 apps, the back-of-napkin math works out to roughly $255K/year in savings. For studios running 50+ apps, it scales. If you're running a mobile app business and haven't looked at Turkey, now's the time. The competitive advantage just went through the roof. Now I HAVE to book my flight to go see all the App Studios out there. ✈️

Angel investors aren’t the only ones who should care about these tax breaks. Founders, this is a fundraising hack for you. If you’re raising a pre-seed and targeting high-net-worth individuals, knowing which states offer tax incentives can give you a serious edge. Because let’s be real. Convincing an angel to write a check is already tough. But if you can tell them: “Hey, by investing in my startup, you could get 25% of your money back in tax credits.” That’s a game-changer. Some key states to look at: Illinois – 25% tax credit (up to $2M) for investing in a Qualified New Business Venture Iowa – 25% tax credit, capped at $100K per investor per year New Jersey – 20-25% tax credit, with extra perks for minority or women-owned startups If you’re raising, do your homework on where your potential investors live. A high-net-worth investor in Illinois might be way more likely to back you than one in, say, California, which offers no tax incentives. More angel-friendly states mean more capital flowing into startups and more founders getting funded. So, founders, have you used tax incentives as a selling point when raising? And investors, would a tax break make you more likely to write a check?

It’s tax planning season, and earlier this year I spent time with some of the top real estate tax specialists learning how investors can optimize returns by saving on taxes. I hadn’t realized how specialized accounting is - much like medicine. Just as doctors have specialties like cardiology or dermatology, accountants often focus on specific areas too. But unlike doctors, they don’t have ‘names’ for their specialties so it wasn’t obvious to me at first. I assumed accountants had universal knowledge of the tax code. That assumption led to a tax ‘shock’ in 2023, and I decided it was time to seek out real estate tax specialists for advice. The result? An eBook featuring insights from the experts I interviewed where you’ll learn powerful ways to reduce taxes and boost earnings. While it’s not tax advice, the information is detailed, practical, and actionable. I’ve also included links to each contributor so you can connect with them directly. Here's a quick summary of the chapters: 1. Cost Segregation: Accelerating Depreciation Learn how to identify and reclassify property components to boost cash flow. (Contributor: Yonah Weiss) 2. Private Foundations and Tax Planning Explore how private foundations can offer tax advantages and support philanthropy. (Contributor: Mark Swedberg) 3. Real Estate Professional Status (REPS) Discover how meeting IRS participation thresholds can unlock unique tax benefits. (Contributor: Brandon Hall) 4. Using the Short-Term Rental Loophole Leverage passive losses from short-term rentals to offset active income. (Contributor: Tom Castelli) 5. 1031 Exchanges to Defer Capital Gains Simplify how to defer taxes when reinvesting property proceeds. (Contributor: Amanda Han and Matt McFarland) 6. Opportunity Zones for Tax Incentives Invest in underserved areas while reducing capital gains tax. (Contributor: Mike McVickar) This eBook offers clear, actionable insights, crafted by experts, to help investors like you end the year with smarter strategies. No cost, no strings, just helpful guidance (and intros to the pros) to make the most of your real estate portfolio. Comment ‘Tax Book’ and I’ll DM you a link to get your copy. I hope you find this as useful as I have as you plan for the New Year!