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California HTC Bill Goes to Governor’s Desk

Wednesday, September 18, 2019 - 11:30AM

A bill to create a California state historic tax credit (HTC) passed the Assembly and the Senate and now is on Gov. Gavin Newsom’s desk. S.B. 451 would create a state HTC for 20 percent or 25 percent of qualified rehabilitation expenses (QREs) that meet specific criteria and would be in effect from 2021 through 2026. The credit would have a statewide cap of $50 million per calendar year, with $2 million set aside for residences and $8 million set aside for developments with QREs of less than $1 million. The bill would require the Legislature to provide for the expenditure each year in appropriations and would require an annual review of the effectiveness of the credits. Newsom has until Oct. 13 to sign the bill. If he doesn’t sign or veto the legislation, it becomes law.

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