Two U.S. “boosters” for your money
(and how we make them work for overseas investors)
At MARSTON Development Group, we help international investors participate directly in U.S. real estate development — as Limited Partners (LPs) — by leveraging the two most powerful federal tax incentive programs:
Opportunity Zones vs. LIHTC (Low-Income Housing Tax Credits)
| Opportunity Zone pass (“OZ”) | Low‑Income Housing Tax Credit coupon book (“LIHTC”) | |
|---|---|---|
| Main Benefit | Press pause on U.S. capital‑gains tax now and possibly erase it later. | Get a stack of 10 yearly coupons that wipe dollars off your U.S. income‑tax bill. |
| Government goal | Pull long‑term money into under‑served ZIP codes. | Keep rents affordable for local workers. |
| Typical project | Remodel a factory, build fibre internet, add mixed‑use housing. | Ground‑up or rehab apartment block with rent caps. |
| Your reward |
• 5‑year tax holiday on the gain you roll in. • Extra 10 % – 30 % of that gain never gets taxed. • Any profit after 10 years = tax‑free. |
• Credits worth roughly 90 c per $1 of U.S. tax you owe, paid out over 10 yrs. • Cash flow from the rents (usually small but steady). |
Big picture
Press pause on U.S. capital‑gains tax now and possibly erase it later.
Get a stack of 10 yearly coupons that wipe dollars off your U.S. income‑tax bill.
Government goal
Pull long‑term money into under‑served ZIP codes.
Keep rents affordable for local workers.
Typical project
Remodel a factory, build fibre internet, add mixed‑use housing.
Ground‑up or rehab apartment block with rent caps.
Your reward
• 5‑year tax holiday on the gain you roll in.
• Extra 10 % – 30 % of that gain never gets taxed.
• Any profit after 10 years = tax‑free.
• Credits worth roughly 90 c per $1 of U.S. tax you owe, paid out over 10 yrs.
• Cash flow from the rents (usually small but steady).
Interactive OZ Map
LIHTC developments can be located anywhere in the U.S. where the demographics make sense, with certain designated areas receiving a 1.3x boost in eligible basis.
You Invest Directly in the Project, Not in a Fund
Your U.S. affiliate invests directly into the LLC that owns the real estate project. That project is structured to meet Opportunity Zone compliance, qualifying you for the full tax benefits, without going through a traditional QOF fund.
1. Form a U.S. Affiliate — We Handle It
- Keep your investment separate and clean
- Enable U.S. tax credit usage
- Comply with FIRPTA and IRS reporting
2. Fund Escrow — Indexed and Protected
Your capital is deposited in a segregated, interest-bearing escrow account, only released when:
- OZ or LIHTC compliance is verified
- The project receives final permitting, awards, and lender approvals
- All legal and financial closing conditions are met
Until then, your capital earns interest and stays protected.
3. Tax Incentives That Deliver
OZ Projects
- Invest in a single project that complies with Opportunity Zone rules
- Hold 10+ years: 100% of your capital gains on resale are tax-free
- Roll over an existing capital gain and receive partial exemption after Year 5
- Project LLC qualifies as a QOF-compliant entity — no pooled fund required
LIHTC Projects
- Projects awarded tax credits by state housing agencies
- Credits monetized by institutions — or used by your U.S. affiliate
- You may fund just the LP share or both LP + LIHTC equity
- Credits typically priced at $0.80–$0.90 per $1.00, delivered over 10 years
- Unused credits carry forward for 20 years
4. Two LIHTC Structures: Your Choice
| Structure | Option 1: Sell Credits to Market | Option 2: U.S. Affiliate Uses Credits |
|---|---|---|
| Who uses the credits | U.S. bank or institutional investor | Your U.S. affiliate (must have U.S. income) |
| Who gets tax benefit | Third party | You (via affiliate) |
| Capital required | Fund only LP equity portion | Fund LP equity + LIHTC equity |
| Credit pricing | ~$0.80–$0.90 per $1.00 | Same (internal) |
| Credit carryforward | N/A | 20 years |
What Is a “QOF-Compliant” Project?
A Qualified Opportunity Fund (QOF) is a legal structure required under the OZ program.
In our model, the project LLC itself is structured to meet QOF requirements, meaning your LP investment goes directly into the compliant project, with no external fund layer. You receive the full tax benefits while staying close to the asset.
Sample Investment Snapshot
| OZ Investment | LIHTC Investment |
|---|---|
| $1M LP in a 300-unit mixed-use multifamily project in a designated OZ | $100K LP in a 120-unit affordable housing project awarded 9% LIHTCs |
| Gain after 10+ years is 100% tax-free | Receive ~$90K–$100K in tax credits over 10 years |
| Original gain also partially forgiven after Year 5 | Credits offset U.S. affiliate tax; unused balance carries forward |
| Direct LP in QOF-compliant project LLC | Direct LP in project; credits monetized or retained |
| Capital escrowed until OZ verification | Capital escrowed until credit award and project closing |
$1M LP in a 300-unit mixed-use multifamily project in a designated OZ
$100K LP in a 120-unit affordable housing project awarded 9% LIHTCs
Gain after 10+ years is 100% tax-free
Receive ~$90K–$100K in tax credits over 10 years
Original gain also partially forgiven after Year 5
Credits offset U.S. affiliate tax; unused balance carries forward
Direct LP in QOF-compliant project LLC
Direct LP in project; credits monetized or retained
Capital escrowed until OZ verification
Capital escrowed until credit award and project closing
Why International LPs Work With MARSTON
- ✔️ Direct ownership: no blind funds, no middlemen
- ✔️ Escrow protection: capital only moves when compliance is certified
- ✔️ Custom tax strategy: monetize or retain credits via affiliate
- ✔️ After-tax performance: optimized tax position = stronger IRR
- ✔️ Full legal & tax coverage: EIN, FIRPTA, IRS compliance handled by independent U.S. legal and CPA teams with decades of experience
- ✔️ National scale + local expertise: MARSTON partners with national tax credit syndicators and lenders, plus on-the-ground teams with deep local knowledge and community trust
- ✔️ Exit structured from day one: Year 11–15 refinance, buyout, or sale planned upfront
✅ Reduce or eliminate U.S. tax exposure
✅ Invest in hard assets with tax-advantaged upside
✅ Leverage federal incentives without complex fund structures
✅ Support broadband and housing in underinvested communities
Then partnering as an LP in MARSTON’s OZ- or LIHTC-compliant real estate projects gives you access, structure, protection, and return — with full compliance built in.
We handle the U.S. complexity. You build long-term value.
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