WASHINGTON – March 9, 2016
Sens. Ben Cardin, D-Md., and Susan Collins, R-Maine, are expected to introduce today the Historic Tax Credit Improvement Act of 2015. Similar to the House version of the legislation (H.R. 3846), the Senate bill would increase the historic tax credit (HTC) for certain small projects; allow credit transfers for certain small projects; lowering the rehabilitation expenditure threshold to qualify for the HTC from 100 percent to 50 percent of adjusted basis; reduce depreciable basis adjustment for rehabilitation property; change how the federal government taxes state HTC proceeds; and modify certain tax-exempt use property rules. Unlike the House bill, the Senate version does not include a provision that would allow functionally related buildings to be treated as separate properties.
WASHINGTON – March 4, 2016
The Internal Revenue Service (IRS) today released Notice 2016-23, requesting comments on the new partnership audit regime enacted in the Bipartisan Budget Act of 2015.The new regime for auditing all partnerships will be effective for tax years beginning after Dec. 31, 2017. Some partnerships may elect into the regime prior to that date. The provisions are intended to make the IRS partnership audit process more efficient by eliminating multi-tier audits and determinations at the partner level. Comments on the new rules are due April 15.
To learn more about the implications of the new provisions on tax credit partnerships read the Notes from Novogradac blog, and purchase a recording of the Novogradac New Rules for IRS Audits of Partnerships Webinar.
WASHINGTON – Feb. 29, 2016
The National Park Service (NPS) on Saturday released its Federal Tax Incentives for Rehabilitating Historic Buildings Annual Report for Fiscal Year 2015 and a supplementary Statistical Report and Analysis for Fiscal Year 2015. According to the reports, NPS approved 1,283 proposed projects worth $6.63 billion in rehabilitation work in fiscal year (FY) 2015. Completed HTC projects certified in FY 2015 created an estimated 85,058 jobs, and 48 percent of completed projects certified in FY 2015 used both federal and state historic tax credits.
Tune in to the March 8 Tax Credit Tuesday podcast to hear more about the reports’ findings.
WASHINGTON – Feb. 2, 2016
The Federal Housing Administration (FHA) today released an updated Multifamily Accelerated Processing (MAP) Guide that combines all FHA multifamily underwriting guidance into one document. The updated MAP Guide includes revised chapters that discuss the low-income housing tax credit (LIHTC) and other tax credits, as well as master lease structuring to facilitate the use of new markets tax credits (NMTCs) and historic tax credits (HTCs). The U.S. Department of Housing and Urban Development (HUD) said the revised MAP Guide is intended to streamline loan application approvals and to promote consistency across all HUD processing offices. Requirements are effective May 28.
WASHINGTON – Jan. 12, 2016
The Advisory Council on Historic Preservation (ACHP) this week released The National Historic Preservation Program at 50: Challenges and Opportunities, a document outlining its observations of the challenges and opportunities facing the national historic preservation program. Among its findings, ACHP reported that the federal historic tax credit (HTC) has stimulated nearly $120 billion of private investment in historic rehabilitation properties. ACHP invited the public to submit further comments and recommendations on how to improve the national historic preservation program. Comments are due to NHPA50@achp.gov by March 1. ACHP will submit a report of policy recommendations to the incoming administration and the 115th Congress, which begins in 2017.
WASHINGTON – Jan. 12, 2016
In the Jan. 13 Federal Register the National Park Service (NPS) will invite the public to comment on its request for renewal by the Office of Management and Budget (OBM) of its historic preservation certification application for purposes of the historic tax credit (HTC). The NPS seeks feedback on whether the information collection is necessary and ways to enhance the quality, utility and clarity of it while minimizing the burden on respondents.
WASHINGTON – Nov. 2, 2015
President Barack Obama today signed the Bipartisan Budget Act of 2015. The legislation suspends the debt limit through March 2017 and lifts spending limits through September 2017. The deal raises sequestration caps and increases discretionary spending by about $50 billion in fiscal year (FY) 2016 and $30 billion in FY 2017, split evenly between defense and domestic spending. Congress passed the legislation last week with votes of 64-35 in the Senate and 266-167 in the House.
Read about the bill’s implications for tax credit partnerships on the Notes from Novogradac blog.
WASHINGTON – Oct. 29, 2015
Rep. Mike Kelly, R-Pa., yesterday introduced the Historic Tax Credit Improvement Act of 2015 (H.R. 3846). The legislation would increase the historic tax credit (HTC) for certain small projects; allow credit transfers for certain small projects; increase the type of buildings eligible for rehabilitation; reduce depreciable basis adjustment for rehabilitation property; change how the federal government taxes state HTC proceeds; modify certain tax-exempt use property rules; and eliminate the concept of functionally related buildings. Original cosponsors include Reps. Earl Blumenauer, D-Ore.; Pat Tiberi, R-Ohio; Richard Neal, D-Mass.; Charles Boustany, R-La.; John Larson , D-Conn.; Mike Turner, R-Ohio; Ron Kind, D-Wis.; Charles Rangel, D-N.Y.; and Tom Reed, R-N.Y. Similar legislation is expected to be introduced in the Senate next week.
Read more about the legislation on the Notes from Novogradac blog.
ATLANTA – Oct. 13, 2015
The Georgia Department of Revenue has issued a proposed rule change for its state historic tax credit (HTC) program. The proposed rule reflects the changes enacted in H.B. 308, which expanded the tax credit program from a $300,000 ceiling to $5 million for most projects and $10 million for others that meet a higher threshold. The changes also allow for the sale or transfer of the Georgia HTCs. Comments on the proposed rule are due Nov. 17 and H.B. 308 goes into effect Jan. 1, 2016.
WASHINGTON – Sept. 30, 2015
Congress today passed a stopgap spending bill that will keep the federal government funded through Dec. 11. The Senate passed the bill this morning with a vote of 78-20 and the House later approved it 277-151. President Barack Obama is expected to sign the bill today. To avoid a government shutdown, a stopgap spending bill needs to be passed before the start of the 2016 fiscal year (FY) Thursday.
WASHINGTON – Sept. 9, 2015
The National Park Service (NPS) and Rutgers University today released the Annual Report on the Economic Impact of the Federal Historic Tax Credit for FY 2014. The report reveals that the historic tax credit (HTC) yields a net benefit to the Treasury Department, generating $28.6 billion in federal tax receipts since the program’s inception, compared to $22.6 billion in credits allocated. From fiscal years 1978 through 2014, those $22.6 billion in federal HTCs allocated spurred $117.6 billion (in inflation-adjusted 2014 dollars) in historic rehabilitation. Those investments generated about 2.5 million new jobs and billions of dollars in direct and secondary economic gains.
Join industry experts to discuss these findings and what lies ahead for the HTC community at the Novogradac Historic Tax Credit Conference in San Antonio, Sept. 17-18.
WASHINGTON – July 8, 2015
The Senate Finance Committee today released reports from its five tax reform working groups. The Community Development & Infrastructure Bipartisan Tax Working Group Report included an overview of the historic tax credit (HTC) program and estimated that HTC tax expenditures for fiscal years 2014-2018 will be $5.4 billion. The report made no recommendations regarding the HTC.
Tune in to the July 14 Tax Credit Tuesday podcast for more information.