i represent a hispanic contractor who wants to purchase a piece of land
bring in a money partner and own a smaller percentage of the finished apartments with his money backer
teh contractor is buying the land by himself and then taking in the partner with 20% equity raise from the investor for approx a 8 million dollar project. Are there any tax breaks or credits for being a minority owner and builder in order to build and own this potential complex this is not owner occupied just a investment deal like any apartment complex developer with a minority owner? he will sign on the construction loan himself and has 29 years experience in commercial real estate construction in Texas
looking to see any tax breaks for a minority investor is my point verses a traditional developer building the same apartment complex without a minority partner.
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You may be able to seek minority business certification, such as with SBA 8(a) programs but that really doesn’t apply to what you’ve described. That can help you get business with set-asides for government contracts and such, but to the best of my knowledge, no tax breaks or lending preferences exist specifically for minority-owned businesses.
There are some tax incentives for using minority-owned businesses as subcontractors and so forth, and that may be an avenue here. This is definitely something to have your attorney and/or accountant investigate, but you may be able to have the developer employ the minority partner and get some tax benefit. Much of that possibility is handled at the state level, not at the federal level.