Wells Fargo 2015 Annual Report Download - page 183

Table 7.4 presents income (expense) related to
nonmarketable equity investments.
Table 7.4: Nonmarketable Equity Investments
Year ended December 31,
(in millions) 2015 2014 2013
Net realized gains from
nonmarketable equity investments $ 1,659 1,479 1,158
All other (743) (741) (287)
Total $ 916 738 871
Low Income Housing Tax Credit Investments We invest
in affordable housing projects that qualify for the low income
housing tax credit, which is designed to promote private
development of low income housing. These investments generate
a return primarily through realization of federal tax credits.
Total low income housing tax credit (LIHTC) investments
were $8.3 billion and $7.3 billion at December 31, 2015 and
2014, respectively. In 2015, we recognized pre-tax losses of
$708 million related to our LIHTC investments. We also
recognized a total tax benefit of $1.1 billion in 2015, which
included a tax credit of $829 million recorded in income taxes.
We are periodically required to provide additional financial
support during the investment period. Our liability for these
unfunded commitments was $3.0 billion at December 31, 2015,
of which predominantly all is expected to be paid over the next
three years. This liability is included in long-term debt.
Wells Fargo & Company
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