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W W W. M A I N E B I Z . B I Z 19 A P R I L 1 5 , 2 0 1 9 F O C U S R E A L E S TAT E / C O N S T R U C T I O N / D E S I G N on tax liability. at promise of future credits, allocated over a multi-year time- frame, is an advantage to the developer as he takes the next step of getting up- front financing for the project. So he goes to the bank for that $2 million. e bank agrees to lend him $1.5 mil- lion; that amount is based on projected revenues, like rental income. Where to get the remaining money? Because the property is located in a designated Opportunity Zone — an investment program created by the federal Tax Cuts and Jobs Act of 2017 to connect private capital with low-income communities — the developer is able to source the rest of the money from investors attracted to the program's promise to reduce capital gains taxes on other deals they've made. And if the investor remains in the project for 10 years or more, he can take his gain on the increased value of that investment tax-free. at's an illustration of how devel- opers can piece together various finance tools, including tax-advantage programs like historic tax credits and opportu- nity zones, for their projects, says Kevin Mattson, CEO of Dirigo Capital Advisors in Topsham. Since 1989 Local Decisions Be Budget! 800.924.4229 www.bdtme.com Problems Solved. Budget Document Technology is an industry leader in providing digital solutions for document creation, production, and distribution. Helping Maine get business done! • Multi-functional Color & B&W Copiers • Printers & Scanners • Postage & Mailing Equipment • Software & Network Solutions • Managed Print Services The Dunham Group takes what is... Building Business and Community for Over 40 Years The Dunham Group has a vision and a purpose. Dunham brokers rally ideas, people, and resources to create dynamic neighborhoods in and around Greater Portland. A vacant building becomes a boutique hotel. An Old Port office building becomes a vibrant retail block. Our brokers work together to re-envision and repurpose underutilized properties to create the places where you want to be. ...and imagines what could be. Portland, ME dunhamgroup.com 207.773.7100 Local Knowledge. Regional Focus. Global Reach. C O N T I N U E D O N F O L L OW I N G PA G E » EXAMPLE DEVELOPMENT STATE TAX CREDIT SINCE 2008 95 rehabilitation projects $856 million in economic impact 1,800 housing units 9,820 new jobs $99.3 million in tax revenue 350% average increase in property tax assessment post-development PURCHASE COST $1,000,000 REDEVELOPMENT COST $2,000,000 20% FEDERAL TAX CREDIT $400,000 25% STATE TAX CREDIT $500,000 TOTAL TAX OFFSET $900,000

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