Benefits to Corporate Investors

With tax rates on the rise, corporations actively seeking tax-advantaged investments should consider the GLCF Limited Partnership V. These tax credits reduce current regular Federal income tax on a dollar for dollar basis. An investment made in the fund can be made in installments over a period of several years to coincide with the benefits received. This way, there is very little or no net cash outlay as the investor funds its capital commitment through annual tax savings. In addition to the reduction in federal tax liability, additional benefits reflected in the corporation’s annual financial statements from such investments include:

Increases in working capital
Increases in retained earnings
Increases in earning per share
Increases in net income

Also important to the corporate investor is:

Flexible Timing: The tax law allows annual unused tax credits to be carried back three years and/or carried forward 15 years from the year they are eligible to be claimed. This flexibility allows a corporation with a change in earnings to utilize a credit from past years or, if necessary, to carry the credit forward for its future benefit.

Attractive Return: A corporate investor with sufficient taxable income earns a return on their investment through use of the tax credit and passive losses and depreciation generated by its investment in a tax credit property. The fund anticipates, without regard to potential cash flow or capital appreciation, the average dollar-for-dollar savings from the tax credit and tax benefits alone will provide for a very competitive return on investment during the project’s 15 year holding period. The investment track record on MCFH LPI, II, III and IV have exceeded the projected rates of returns stated in the offering.

Corporate Image: An investment in affordable housing is a highly visible investment that a corporate participant can use to enhance their public image. Financial institutions investing in the GLCF Limited Partnership V may receive credit under its Community Reinvestment Act responsibilities. GLCF will work closely with corporate investors to publicize corporate sponsorship and generate community goodwill.