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Tax Credit Syndication Yield Calculator

Tax credit investors price credits through syndication market.

$
$
$

Investor IRR

0.01%

Total credits

$7,000,000

Effective pricing $/$credit

0.929

How the math works

Total credits = annual × years. Pricing = contribution / credits. IRR computed iteratively.

$700k × 10 = $7M credits. $6.5M / $7M = $0.93 per $1 pricing. IRR ≈ 7.4% over 10 years.

How to Use

  1. Enter annual federal credit.
  2. Enter annual state credit.
  3. Enter investor contribution.
  4. Enter years of credits.
  5. Read investor yield.

Frequently Asked Questions

Tax credit types?

LIHTC: 9% or 4% annual for 10 years. Historic Tax Credit: 20% over 5 years (renovation). New Markets Tax Credit: 39% over 7 years. Solar Investment Tax Credit: 30% one-time. Each has different timing and structure.

Syndication pricing?

LIHTC: $0.85-1.00 per $1 credit. HTC: $0.80-0.95 per $1. NMTC: $0.75-0.85 per $1. ITC: $0.95-1.00 per $1. Pricing moves with interest rates and demand. Large credits more aggressively priced.

Investor yield?

LIHTC investors typically achieve 6-8% after-tax IRR. HTC: 5-8%. NMTC: 6-9%. ITC: 8-12%. Attractive tax-advantaged returns for corporate investors with tax liability (banks, utilities).

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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