News Archive:

2012

February

REPORT FINDS VERY LOW HISTORIC TAX CREDIT RECAPTURE RATE

WASHINGTON, D.C. - February 16, 2012

Historic tax credit (HTC) transactions have experienced very low rates of recapture, according to the recently released “Historic Rehabilitation Tax Credit Recapture Survey,” commissioned by the National Trust for Historic Preservation and produced by Novogradac and Company LLP. The study to determine the frequency and amount of recapture that investors have experienced with the HTC was conducted by surveying of a group of historic tax credit investors that have made significant investments; collectively, the survey’s respondents have invested in more than 50 percent of the HTCs claimed during the past 10 years. Survey respondents report experiencing a historic tax credit recapture rate of less than three-quarters of one percent over the past 10 years. The survey results are further supported by an analysis of the information obtained from the Internal Revenue Service, which reflects an annual historic tax credit recapture rate of 0.07 percent for 2008.

HISTORIC TAX CREDIT MODERNIZATION BILL INTRODUCED IN SENATE

WASHINGTON, D.C. - February 7, 2012

Sen. Ben Cardin, D-Md., yesterday introduced S. 2074, the Creating Prosperity through Preservation (CAPP) Act of 2012. The bill would increase the federal historic tax credit (HTC) from 20 percent to 30 percent for deals with less than $5 million in qualified rehabilitation expenditures; index the date for the 10 percent credit for non-historic buildings so that both 20 percent and 10 percent credits would apply to buildings 50 years and older; and provide a 2 percent HTC boost for achieving energy savings at least 30 percent greater than established industry standards for similar buildings. The CAPP Act would also eliminate the federal taxation of the proceeds of a state HTC transaction for both state credit certificate sales and credits allocated through partnerships. The bill’s supporters say these changes would stimulate jobs and economic growth in low-income, underserved areas. Sen. Olympia Snowe, R-Maine, is cosponsoring the bill, which was referred to the Finance Committee.

January

HISTORIC TAX CREDIT PROPOSED IN NEBRASKA

LINCOLN, Neb. - January 30, 2012

Nebraska State Sen. Abbie Cornett, District 45, introduced the Historic Property Restoration and Reuse Act on January 9. The act, known as L.B. 888, would provide a 25 to 30 percent tax credit for developers that rehabilitate federal, state or locally-designated historic properties. For-profit developers would qualify for a 25 percent tax credit for restoration projects; not-for-profit developers would qualify for a 30 percent tax credit. The state HTC would be transferable and have a five-year recapture period. The tax credit created by L.B. 888 would expire on January 1, 2018. The act, which is also supported by Sen. Heath Mello, District 5, was referred to the revenue committee.

Tune in to the Tax Credit Tuesday podcast on February 7 to learn more about Nebraska’s Historic Property Restoration and Reuse Act.