WASHINGTON – March 10, 2014
The National Park Service (NPS) approved 1,155 proposed historic rehabilitation tax credit (HTC) projects in fiscal year (FY) 2013, worth an estimated $6.73 billion in investment, according to the Federal Tax Incentives for Rehabilitating Historic Buildings Annual Report for Fiscal Year 2013. More than 40 percent of the completed projects paired the federal credit with a state HTC. NPS released a supplementary Statistical Report and Analysis for Fiscal Year 2013, which found that more than 25,000 housing units were approved for HTCs, including approximately 7,100 low- and moderate-income housing units. Since the program’s inception in 1976, the federal HTC has certified more than 39,600 projects, created 2.4 million jobs and spurred nearly $69.5 billion in investment.
Tune into the March 18 Tax Credit Tuesday podcast to hear more about the reports’ findings.
DENVER – March 10, 2014
Last week, Colorado State Rep. Leroy Garcia introduced H.B. 14-1311, which would establish a Colorado state historic rehabilitation tax credit (HTC). Also known as the Colorado Job Creation and Main Street Revitalization Act, the bill would create a tiered tax credit for qualified rehabilitation expenditures to commercial historic structures: a 30 percent tax credit for qualified expenditures less than $2 million; 25 percent for expenditures between $2 million and $4 million; and 20 percent for expenditures of more than $4 million. Historic structures located in designated disaster areas may be eligible for a 5 percent or 13 percent tax credit boost. Commercial projects have an annual HTC cap of $2 million each. For residential rehabilitations, the bill provides up to $50,000 in state HTCs for 20 percent of qualified expenditures, or 25 percent if located in a designated disaster area. The bill would authorize $15 million annually from calendar year (CY) 2015 through 2018. Colorado currently offers a 20 percent HTC for qualified projects.
WASHINGTON – March 5, 2014
The National Trust for Historic Preservation, Preservation Action, the National Conference of State Historic Preservation Officers and the Historic Tax Credit Coalition have sent a letter in support of the federal historic tax credit (HTC) to Ways and Means Committee Chairman Dave Camp, R-Mich., and Ranking Member Sander Levin, D-Mich., in response to Rep. Camp’s proposed repeal of the HTC program in the Tax Reform Act of 2014 discussion draft. More than 300 groups signed on to the letter in support of the HTC.
Tune in to the March 11 Tax Credit Tuesday podcast to hear more about the letter.
WASHINGTON – March 3, 2014
The National Trust for Historic Preservation, Preservation Action, the National Conference of State Historic Preservation Officers and other national partners are circulating a sign-on letter in support of the federal historic tax credit. This letter was written in response to House Ways and Means Committee Chairman Dave Camp’s, R-Mich., discussion draft of Tax Reform Act of 2014, which proposed repealing the HTC program and a number of local and state tax deductions, among other things.
Tune into the March 4 Tax Credit Tuesday podcast to hear more about the letter and other responses from the tax credit community to Rep. Camp’s tax reform proposal.
BATON ROUGE, La. – Feb. 26, 2014
The Louisiana Department of Revenue this week issued Revenue Information Bulletin 2014-007, which provides guidelines for implementation of the Louisiana Rehabilitation of Historic Structures Tax Credit. The bulletin outlines property qualifications; application requirements; tax credit claiming or transferring procedures; and a taxpayer audit advisory. The state tax incentive provides a 25 percent credit for qualified costs to rehabilitate historic structures in downtown areas or cultural districts.
WASHINGTON – Feb. 26, 2014
Ways and Means Chairman Dave Camp, R-Mich., today released a draft tax reform proposal that would repeal the historic rehabilitation tax credit (HTC) and the renewable energy investment tax credit (ITC) and production tax credit (PTC). The draft does not include any reference to the new markets tax credit (NMTC).
The proposal would retain the low-income housing tax credit (LIHTC) in the revised tax code but would make several changes. Under the proposal, state and local housing authorities would allocate qualified basis, rather than tax credits. The proposed annual amount of allocable basis for each state would be equal to $31.20 multiplied by the state’s population, with a minimum annual amount of $36,300,000. In addition, the draft calls for including repealing the 4 percent credit, extending the credit period to 15 years from 10, repealing the increased basis rule for high-cost and difficult development areas, revising the general-public-use requirement to provide occupancy preferences only for individuals with special needs and veterans, and repealing the requirement that states include the energy efficiency and historic nature of the development in their selection criteria.
Novogradac & Company is developing a detailed analysis of the proposal, so stay tuned.
RICHMOND, VA. – Feb. 25, 2014
Yesterday, in Route 231 LLC, John D. Carr, Tax Matters Partner v. Commissioner, the United States Tax Court ruled that state tax credits are property and that, under the facts of the case, the allocation of the credits to a partner was a disguised sale.
Tune into the March 4 Tax Credit Tuesday podcast to hear more about the ruling’s significance.
RICHMOND, VA. – Feb. 6, 2014
Virginia’s state historic rehabilitation tax credit (HTC) has stimulated $3.97 billion in private investment between 1997 and 2013, according to a recent report prepared for Preservation Virginia by the VCU Center for Urban and Regional Development. “Economic Impact of Historic Rehabilitation Tax Credit Programs in Virginia” found that the state HTC created more than 31,000 jobs and resulted in the rehabilitation of 2,375 historic buildings, including mills, hotels and theaters. Click here to learn more about state HTCs.
WASHINGTON – Jan. 13, 2014
The Internal Revenue Service (IRS) last week released a revised draft of Revenue Procedure 2014-12, which establishes the safe harbor requirements under which the IRS will not challenge partnership allocations of § 47 historic rehabilitation tax credits (HTCs) by a partnership to its partners. To read a summary of the three key changes made by the revision, visit the Notes from Novogradac blog. Also last week, the Historic Tax Credit Coalition’s (HTCC’s) IRS guidance committee issued a memo to HTCC members summarizing the highlights of Rev. Proc. 2014-12.
To learn more about the safe harbor and what it means for the HTC community, plan to attend the Novogradac IRS Revenue Procedure 2014-12 and the Safe Harbor for Historic Tax Credit Structures webinar on Jan. 30.
WASHINGTON – Dec. 30, 2013
The Internal Revenue Service (IRS) has issued Revenue Procedure 2014-12, which establishes the safe harbor requirements under which the IRS will not challenge partnership allocations of § 47 historic rehabilitation tax credits (HTCs) by a partnership to its partners. Rev. Proc. 2014-12 says the Treasury Department and the IRS intend for the safe harbor to provide partnerships and partners with more predictability regarding the allocation of HTCs to partners of partnerships that rehabilitate certified historic structures and other qualified rehabilitated buildings. Rev. Proc. 2014-12 takes effect for the allocation of HTCs made by a partnership to its partners beginning Dec. 30, 2013.
To learn more about this highly anticipated guidance, plan to attend Novogradac & Company's upcoming webinar. Stay tuned to www.novoco.com/events for details about this event, which will be announced shortly.
WASHINGTON – Dec. 12, 2013
Gov. Scott Walker today signed October Special Session Assembly Bill 4 into law, increasing the Wisconsin state historic tax credit (HTC). Assembly Bill 4 effectively doubles the state HTC for historic structures built prior to 1936 from 10 percent to 20 percent.
WASHINGTON – Dec. 4, 2013
The federal historic tax credit (HTC) spurred $958 million in historic rehabilitation work in Ohio between 2007 and 2012, according to “Ohio: Creating Jobs, Building Communities, Preserving Heritage,” a report released yesterday by the National Trust for Historic Preservation and Heritage Ohio. Between 2007 and 2012, the federal HTC created more than 15,000 jobs and financed 295 preservation projects in the state. The report highlights 10 of those rehabilitation projects, including a 1920s theater in Cleveland and a 19th century brewery in Columbus.
Tune into the Dec. 10 Tax Credit Tuesday podcast to hear more about the report’s findings and other Ohio historic rehabilitation projects.