Practice Area · Tax Credits
Federal tax credit finance.
Transactional depth across six programs.
Structuring, closing, and compliance for New Markets, Low-Income Housing, Historic, Renewable Energy, Opportunity Zone, and Employee Retention Credits. A transactional practice built on three decades of work with developers, investors, community development entities, syndicators, and public-sector sponsors.
A practice area built over thirty years.
Federal tax credits are not a peripheral specialty. They are infrastructure for how affordable housing, historic preservation, clean energy, and community economic development actually get financed in the United States. Capital flows into these programs because Congress wrote the Internal Revenue Code to make it flow — but the legal and accounting scaffolding that allows a specific project to qualify, close, and deliver credits to investors is highly technical work. It requires lawyers who have done the transactions before.
Mr. Lozano's career in this area includes leading the legal and drafting work that secured $180 million in New Markets Tax Credit allocation authority from the U.S. Treasury's CDFI Fund, subsequently deploying those credits across transactions exceeding $1.1 billion in layered tax credit structures. That work covered New Markets, Low-Income Housing, Historic Rehabilitation, and Renewable Energy Tax Credits — often stacked together in the same development to close financing gaps that no single program could bridge.
Today the firm brings that depth to Texas developers, sponsors, and investors. The work ranges from structuring new transactions to unwinding problems in transactions someone else built. It is not volume practice. It is senior attorney practice, and it is handled by a single lawyer who has spent three decades in this part of the code.
The six programs the firm covers.
Tax credit work is usually discussed one program at a time. In practice, most sophisticated transactions combine two or three. The firm handles each on its own and in combination.
New Markets Tax Credits (NMTC)
The NMTC program provides a 39% federal tax credit, taken over seven years, to investors who make qualified equity investments in Community Development Entities (CDEs) that in turn finance qualified businesses and real estate projects in low-income communities. The work includes CDE qualification and certification, allocation applications to the CDFI Fund, Qualified Equity Investment structuring, Qualified Low-Income Community Investment loan documentation, leverage loan structures, compliance over the seven-year credit period, and eventual exit. Mr. Lozano's involvement in the program dates to its early years.
Low-Income Housing Tax Credits (LIHTC)
The largest federal subsidy for affordable rental housing, administered through state housing finance agencies under a competitive 9% allocation and a non-competitive 4% program tied to tax-exempt bond financing. The work covers partnership structuring between developers and syndicated investors, compliance period tracking, qualified contract provisions, right-of-first-refusal mechanics at year fifteen, and layering with other sources such as HOME, CDBG, and private lending. Often combined with Historic Tax Credits in adaptive reuse projects.
Historic Rehabilitation Tax Credits
A 20% federal credit for the rehabilitation of certified historic structures, administered jointly by the National Park Service, the State Historic Preservation Office, and the IRS. The work requires careful attention to the Part 1, Part 2, and Part 3 certification process, rehabilitation standards under the Secretary of the Interior's guidelines, pass-through structures for tax credit investors, and in many cases coordination with state historic tax credit programs. Frequently layered with NMTC or LIHTC in urban redevelopment.
Renewable Energy Tax Credits — Investment and Production
The Investment Tax Credit (ITC) and Production Tax Credit (PTC) provide federal subsidy for solar, wind, and other clean energy projects. The work covers project company structuring, partnership-flip and sale-leaseback arrangements, tax equity investor negotiation, developer carry structures, prevailing wage and apprenticeship compliance under the Inflation Reduction Act, and interaction with direct pay and transferability provisions. Mr. Lozano's prior work in this area included syndicated Investment Tax Credit and Production Tax Credit transactions supporting solar, wind, and clean-energy projects in partnership with film studios and federal agencies.
Opportunity Zones
The Opportunity Zone program, enacted by the Tax Cuts and Jobs Act, provides capital gains deferral and, for sufficiently long-held Qualified Opportunity Fund investments, permanent exclusion of post-investment appreciation. The work includes Qualified Opportunity Fund formation, Qualified Opportunity Zone Business structuring, substantial improvement calculations, working capital safe harbor planning, and exit structuring. Particularly useful when combined with Historic Tax Credits in urban adaptive reuse or with LIHTC in targeted affordable housing.
Employee Retention Credits
The Employee Retention Credit, enacted during the pandemic and heavily litigated since, remains an active area of IRS scrutiny. Work in this area includes advising employers on the qualification standards, defending claims under audit, responding to IRS notices of disallowance, and where appropriate, representation through Appeals and the United States Tax Court. The firm does not pursue volume ERC work but handles matters for clients already represented on other tax issues.
Layered tax credit transactions are not something you learn by reading the Internal Revenue Code. You learn them by closing them — and then closing a hundred more.
Related at the firm.
Tax credit work rarely stands alone. Many transactions involve entity formation, real estate closing mechanics, partnership drafting, and coordination with estate and succession planning for principals.
- Real Estate — commercial transactions, 1031 exchanges, and development and land-use matters often accompany tax credit projects.
- Business Entities — the LLC, LP, and partnership structures that hold tax credit investments require careful formation and operating agreement drafting.
- Corporate & Partnership — multi-tier partnership arrangements, operating agreements, and investor documentation.
- Tax Resolution — when a tax credit transaction triggers IRS examination, recapture risk, or partner disputes, representation before the Service and the Tax Court.