California Governor Signs Bill Creating State HTC

Friday, October 11, 2019 - 10:15am

California Gov. Gavin Newsom this week signed into law a bill to create a state historic tax credit (HTC). S.B. 451 creates a state HTC for 20 percent of qualified rehabilitation expenditures (QREs), with an increase to 25 percent of QREs that meet certain criteria, including affordable housing. The credit will be in effect from 2021 through 2025, although it will require the Legislature to provide for the expenditure each year in appropriations and will require an annual review of the effectiveness of the credit. The credit has a statewide cap of $50 million per calendar year, with a $2 million set-aside for residences and an $8 million set-aside for developments with QREs of $1 million or less.