Day: October 9, 2023

Make Neighborhood Revitalization Plans Reality: Apply for a Choice Neighborhood Implementation Grant by December 11

On September 6, the U.S. Department of Housing and Urban Development (HUD) posted a Notice of Funding Opportunity (NOFO) for a Choice Neighborhoods Implementation Grant. About $256 million will be available for transformative awards of up to $50 million each. The deadline to apply is December 11, 2023.

Who Can Apply?

Given the program’s transformative reach, HUD encourages eligible communities of all sizes to pursue a Choice Neighborhoods grant. The Lead Applicant must be a Public Housing Agency (PHA), a local government, or a tribal entity. If there is a Co-Applicant, it must be a PHA, a local government, a tribal entity, or the owner of the target HUD-assisted housing. For a tribal entity, the local government of jurisdiction or tribe must be the Lead Applicant or Co-Applicant.

What Is Needed to Apply?

Applications must present a plan to revitalize a severely distressed public and/or HUD-assisted multifamily housing project located in a distressed neighborhood and transform it into a viable, mixed-income community.

When Are Applications Due?

December 11, 2023

Where Can I Learn More?

Visit the Choice Neighborhoods website at Hud.gov/cn and HUD Exchange for information and resources.

Why Apply?

Thanks to the Choice Neighborhoods grants, 13,000 new mixed-income units have been built across 52 cities, with plans for 37,000 more. Going beyond housing, the program has led to new businesses, parks, and grocery stores, as well as revitalized schools, childcare programs and healthcare resources with better outcomes. One study showed HUD’s investment generated $400 million in public and private resources; increased median household incomes and homeownership rates; and resulted in lower crime rates.

How Can the Grant Be Used?

Grants, along with public and private funds, support locally driven strategies to revitalize neighborhoods by transforming housing while investing in the surrounding area and resident services. The Choice Neighborhoods program focuses on:

Housing: Replace distressed public and assisted housing with high-quality mixed-income housing that is well-managed and responsive to the needs of the surrounding neighborhood;
People: Improve outcomes of households living in the target housing related to employment and income, health, and children’s education; and
Neighborhood: Create the conditions necessary for public and private reinvestment in distressed neighborhoods to offer the kinds of amenities and assets, including safety, good schools, and commercial activity, that are important to families’ choices about their community.

While you explore the potential of transforming high-poverty neighborhoods into places of opportunity and economic growth, you can count on RBT CPAs to take care of all of your tax, accounting, audit, and advisory needs. Give us a call to learn more.

RBT CPAs is proud to say all our work is prepared in the U.S.A. – we never offshore. As a result, you get peace of mind that your operation’s financial and confidential information is handled by full-time, local staff who have met our high standards for quality, ethics, and professionalism.

NY Healthcare Workforce Bonus Applications Being Accepted October 1 – 31

Would you like to give your employees a bonus without paying a dime? Now may be your chance!

Certain healthcare employees who worked consecutively between April 1 and September 30 of this year may be eligible for a New York Health Care Worker Bonus of $500, $1,000 or $1,500. Between October 1 and 31, eligible employers can submit a claim for all eligible employees.

In 2022, New York Governor Hochul launched the Health Care and Mental Hygiene Worker Bonus program to support eligible employers’ efforts to recruit, retain, and reward staff, and ultimately increase the state’s healthcare workforce by 20% in five years. Following are some highlights.

Who’s an eligible employer?

As noted in the program’s FAQs as of July 27, 2023, you must have at least one employee; bill for services under the Medicaid state plan or a home or community-based services (HCBS) waiver; have a provider agreement to bill for Medicaid services arranged through a managed care organization or a managed long term care plan; or be an eligible education institution or other eligible program.

Eligible employers include “certain providers, facilities, pharmacies, and school-based health centers licensed under the state Public Health Law, Mental Hygiene Law, and Education Law, as well as certain programs funded by the Office of Mental Health (OMH), Office for the Aging, Office of Addiction Services and Supports (OASAS), and the Office for People with Developmental Disabilities (OPWDD).” This includes staff at hospitals and nursing homes; psychiatric centers; OASAS addiction treatment centers; residential programs operated or certified by OPWDD, OMH and OASAS; Medicaid assisted living programs; hospice residences; and more.

Who’s an eligible employee?

An employee must hold an eligible job providing patient facing care. There is a long list of positions eligible – see job titles here. In general, to be eligible an employee must earn less than $125,000 annually; work consecutively for the employer during a six-month vesting period between October 1, 2021 through March 31, 2024; and must not be excluded or suspended from Medicaid during the vesting period. The employee can be part-time, full-time, temporary or an independent contractor.

How much is the bonus worth?

Bonus amounts depend on the number of hours worked per week during the vesting period and can be in the amount of $500, $1,000, or $1,500. An employee can be eligible for up to two vesting periods and receive a maximum of $3,000 in bonuses. If the employee is a New York State resident, the bonus will not be subject to NY personal income taxes and any local income tax.

To take advantage of the program, an eligible employer must apply at www.nysworkerbonus.com between October 1 and October 31 for the latest vesting period. You’ll need an active MMIS ID with eMedNY or a Statewide Financial System (SFS) ID. There are a series of videos on YouTube providing more information about the program and how to apply. For complete program details, visit the NYS Department of Health website.

For information on tax implications, RBT CPAs professionals are available to help (we are also available to support your accounting, tax, and audit needs). To learn more, give us a call today.

IMPORTANT NOTE! This article is only intended to provide highlights of the Health Care Worker Bonus program. Complete program details are available at the NYS Department of Health website. If there is any discrepancy between the information in this article and the website, the website’s content governs.

What Tax-Related Questions Should You Be Asking Before Year-End?

In the blink of an eye, we’re in the last quarter of 2023. Don’t blink again or you’ll miss the three months remaining in 2023 to make decisions that can impact how much you’ll pay in taxes come April. Here are a few questions to consider and possible tax deductions and credits that may help you reach your goals.

What goals did you set at the start of 2023 and how close are you to reaching them? Are there tax moves that can help you cross the finish line?

Did you have a goal to increase the number of customers you serve?

Whether you want to build awareness of the value your business delivers or offer special deals and incentives at year-end, marketing is key, and related costs are deductible. Expenses can include digital or traditional marketing, website work, professional conference attendance, business cards, marketing professionals and services, and more.

Are you trying to upgrade operations for the future?

Under Internal Revenue Code Section 179, if you buy or lease (with qualified financing) appreciable business equipment, you can deduct the full purchase price (or lease amount) from your gross income. Equipment can include office machinery, furniture, vehicles, computers, and more. The item must be new to your business, used for business purposes, and put in service the year that you take the deduction. The most you can deduct under Section 179 for 2023 is $1,160,000. There’s also an 80% first-year bonus depreciation for 2023, so you can reduce your tax liability even more.

Are you looking to operate more effectively and efficiently? Do you have or do you need any project management software, cloud storage, accounting software, or other software subscriptions?

Depending on a number of variables, you may be able to amortize the cost over three years or expense the cost under Section 179 and 168k provisions. (On a side note: Whether you’re implementing for the first time or changing software providers, it can take several weeks to get things up and running. Now is the perfect time to get started if you are looking for a January 1 go-live date. Plus, transitioning January 1 makes your accounting a lot easier.)

Are you struggling to attract or keep talent?

Bonuses and pay are 100% deductible. As for healthcare, if you pay at least 50% of the cost of coverage (a.k.a. premiums) for employees, you can deduct the cost. If you are self-employed and buy health insurance for yourself and your family, 100% of the cost is deductible. Also, If eligible, you can claim a tax credit of up to $5,000 for three years for the costs to start and administer a SEP, Simple IRA, or other qualified plan. Finally, if you plan an employee celebration, it’s 100% deductible. Plus you can claim up to $25 per employee for a gift.

Are you looking to reduce your carbon footprint and increase sustainability?

Receive a tax credit for 30% of the cost of switching to solar power. For energy efficiency improvements (i.e., install interior lighting, a new building envelope, or an HVAC or hot water system that reduce energy and power costs by at least 50%), receive a tax credit up to $5/square foot. When it comes to commercial clean vehicles, the credit can be up to $40,000 under IRC 45W.

That’s just a sampling of the questions you should be asking now. There are a lot more: Should you take a class to learn something new to help your business? Should you start that research and development project? Is it time to evaluate insurance and bank costs? Should you consider a new business structure? How can you reduce your tax liability? Is it time to update your home office? The list goes on…

If you’re interested in discussing year-end tax planning with an RBT CPAs professional, send an email to Marketing@rbtcpas.com or give us a call.

NOTE! Tax laws and codes are very complex. While we’ve tried to ensure the accuracy of all the information presented herein, the actual tax laws and codes as presented on IRS.gov govern. What’s more, this article provides highlights about tax deductions and credits and should not be considered advice. Your best bet to ensure accuracy and completeness is to talk directly to a CPA.

New Incentive for New York Municipalities to Expand Affordable Housing

If your municipality wants priority consideration for a number of New York State discretionary funds, it has to obtain Pro-Housing Community Certification.

Although attempts to gain support of affordable housing initiatives in New York faltered earlier this year, Governor Hochul remains committed to boosting affordable housing by 800,000 units within a decade. On August 31, the Pro-Housing Communities Program opened for business, providing financial incentives for municipalities to get on board with affordable housing growth. Municipalities that either meet affordable housing growth metrics or commit to the program’s principles will be rewarded by earning priority consideration for more than $650 million in state discretionary funds.

The press release announcing the program notes, “Certified Pro-Housing Communities will be considered first among localities applying for the Downtown Revitalization Initiative (DRI); NY Forward program; Regional Council Capital Fund; capital projects from the Market New York program; New York Main Street program; Long Island Investment Fund (LIIF); Mid-Hudson Momentum Fund;  Public Transportation Modernization Enhancement Program (MEP); and any other funding where future appropriation language designates it as a Pro-Housing Community program.”

To apply for Pro-Housing Community Certification, an authorized official must email a letter of intent. Then, applicants must provide information on local zoning codes and housing permit approvals in the past five years in the templates provided. A municipality must show approval of permits increasing housing stock by 1% (downstate) or 0.33% (upstate) over the past year or permits increasing housing stock by 3% (downstate) or 1% (upstate) over the past 3 years. Within 90 days, the municipality will receive a decision about certification.

If your municipality hasn’t met housing growth requirements, it can still obtain certification by passing a defined Pro-Housing Resolution.

By March 31, of each year, localities must resubmit any zoning updates and housing permit data to remain certified. For the application and complete program details, click here.

This is just one of a number of executive actions the Governor is taking to address New York’s housing crisis. Additional actions include a program to advance residential projects halted by the expiration of 421-A in Gowanus; a requirement that state entities ID state-owned lands that may support housing; and a portal collecting and sharing community housing and zoning data.

In our neck of the woods, this summer, the City of Kingston bolstered its efforts related to affordable housing development by adopting a new form-based zoning code designed to make it easier for development to occur and establishing a Department of Housing Initiatives to support the City’s housing planning.

If you’re interested in learning more about how the lack of affordable housing impacts New York and its residents (or former residents), check out these articles from Pew Research and The Fiscal Policy Institute.

To free you up to focus on this, please know RBT CPAs is here to support all of your tax, audit, and advisory needs. Give us a call to learn how we can work together to promote your business success.