Development Incentives & Tax Credits

Unlocking Incentives for Smarter Development

Real estate and infrastructure development often hinges on the ability to secure capital and reduce long-term operating costs. Federal, state, and local governments offer a range of incentive programs to promote projects that generate economic growth, create jobs, and align with broader public policy goals—such as sustainability, historic preservation, and affordable housing. However, identifying these opportunities and successfully navigating the legal framework behind them is not always straightforward.

At Scarinci Hollenbeck, LLC, our experienced development lawyers serve as strategic partners to private developers, institutional investors, and municipalities. We help our clients unlock the full value of development incentives while avoiding the legal and regulatory pitfalls that can derail a project.

The Purpose Behind Development Incentives

Incentives are designed to stimulate private investment in areas or sectors that align with public priorities. Common objectives include:

• Urban revitalization and brownfield redevelopment
• Affordable and workforce housing development
• Historic property rehabilitation and adaptive reuse
• Green and sustainable construction projects
• Job creation and local hiring initiatives
• Energy efficiency and renewable energy adoption

To qualify for these programs, developers must meet strict eligibility requirements, provide detailed documentation, and, in many cases, demonstrate long-term compliance with usage or employment benchmarks. This is where our development attorneys bring significant value—helping clients plan ahead, comply at every stage, and maximize financial return.

How We Help Developers Leverage Incentives

Our attorneys work across all phases of development to identify and secure the right mix of public and private resources. Key services include:

Identifying Applicable Tax Credits and Funding Programs

Each development project is unique in size, scope, and intended impact, and different programs apply depending on location, building use, and financing structure. We assess eligibility for:

• Federal programs such as the Low-Income Housing Tax Credit (LIHTC), New Markets Tax Credit (NMTC), Historic Rehabilitation Tax Credit (HTC), and Renewable Energy Credits
• State and local incentives, including sales and property tax abatements, PILOT agreements, tax increment financing (TIF), and infrastructure grants
• Zone-based incentives, such as Opportunity Zones, Enterprise Zones, and Qualified Census Tracts

We also track emerging incentive structures as legislation evolves at the federal and state levels, ensuring our clients never miss an opportunity.

Structuring Transactions to Meet Program Requirements

To qualify for incentives, your project must be structured in a way that aligns with specific statutory and regulatory frameworks. We assist in:

• Forming special purpose entities (SPEs) for ownership and compliance
• Developing financing structures that accommodate equity investors, lenders, and tax credit syndicators
• Drafting legal documents that reflect program-specific obligations such as rent restrictions, energy performance benchmarks, or community impact goals
• Coordinating with accountants, lenders, and consultants to build a fully compliant application and reporting process

Without proper structuring, even the most eligible projects may fail to meet technical requirements or face costly delays in approval.

Navigating Legal Frameworks for Public-Private Partnerships (P3s)

Many large-scale developments—especially those involving infrastructure, mixed-use space, or civic benefit—are built on public-private partnerships. These arrangements are governed by intricate legal frameworks and negotiation dynamics between private developers and public authorities.

Our development attorneys help structure and negotiate P3 agreements that:

• Balance public accountability with private sector flexibility
• Ensure transparent allocation of risk, performance metrics, and revenue-sharing arrangements
• Include community benefit terms or workforce development obligations when required
• Avoid conflict with existing land use laws, procurement rules, or grant conditions

We bring an understanding of both public agency priorities and private sector efficiency, making us effective advisors in these often complex negotiations.

Ensuring Ongoing Compliance with Incentive Program Rules

Securing approval for an incentive is just the beginning. Most programs include long-term obligations that must be met to avoid clawbacks, audits, or disqualification from future funding. We provide counsel on:

• Monitoring deadlines for progress benchmarks, occupancy levels, or employment targets
• Preparing and submitting annual certifications and compliance reports
• Handling agency reviews, audits, and investigations
• Advising on changes in project scope or ownership that may impact eligibility

By maintaining compliance throughout the lifecycle of a project, we help clients preserve the value of their incentives and protect their reputations with oversight agencies.

Advocating During Government Negotiations

Securing incentive packages often requires direct negotiation with local or state government agencies, planning boards, and public finance authorities. Our team serves as your advocate in meetings and negotiations to:

• Present and defend your application
• Secure zoning variances or density bonuses
• Negotiate PILOT payments or tax abatements
• Draft term sheets that accurately reflect business goals while satisfying government concerns

Our goal is to reduce red tape and expedite approvals, all while ensuring your rights are fully protected under the law.

A Strategic Approach to Incentives—From Opportunity Zones to PILOTs

From federal Opportunity Zones that offer deferred or reduced capital gains taxes to PILOT (Payment in Lieu of Taxes) agreements that stabilize long-term costs, development incentives can dramatically alter the financial landscape of a project. But tapping into these tools without the right legal strategy can lead to missed opportunities—or worse, future liability.

Our team doesn’t just help you access these incentives—we help you leverage them intelligently and sustainably, in ways that support your development vision and protect your investment for the long term.

At Scarinci Hollenbeck, LLC, we deliver more than compliance—we deliver a competitive edge.

Legal Services for Incentive-Eligible Projects

Our development attorneys offer a full suite of legal services related to development incentives and tax credits:

1. Incentive Identification & Eligibility Analysis

We research and evaluate your project’s eligibility for various programs, including:

• Federal and state historic preservation tax credits
• Low-Income Housing Tax Credits (LIHTC)
• New Markets Tax Credits (NMTC)
• Renewable energy credits
• Economic development grants
• PILOT programs
• Opportunity Zones

2. Transaction Structuring & Compliance

We ensure your project is structured to meet incentive program requirements, including:

• Entity formation and financing structures
• Partnership agreements and investor protections
• Public-private partnership (P3) arrangements
• Compliance with use restrictions, reporting, and timelines

3. Government Relations & Approvals

We work with local and state officials to secure necessary approvals and optimize incentive packages. This includes:

• Negotiating community benefit agreements
• Drafting incentive applications and term sheets
• Appearing before zoning boards, planning commissions, and state agencies

4. Post-Award Legal Support

After incentives are awarded, we assist with:

• Ongoing regulatory compliance
• Certification submissions and audits
• Transfer or recapture of credits
• Dispute resolution and risk management

Our team of development lawyers brings decades of experience in complex real estate and infrastructure projects across the region. We combine legal acumen with a deep understanding of public finance, tax law, and real estate development to help clients turn bold visions into reality.

We’ve advised on projects involving:

• Mixed-use developments in revitalization zones
• Affordable housing initiatives leveraging multiple credit sources
• Renewable energy installations with layered incentive funding
• Urban redevelopment projects supported by TIF and PILOT agreements

We serve as strategic partners to developers, not just legal advisors—helping you navigate the politics, programs, and policies that drive successful development.