CTCAC Publishes Proposed Regulations for State HTC

The California Tax Credit Allocation Authority (CTCAC) this week published proposed regulations for the state historic tax credit (HTC). The California credit is for 20% of qualified rehabilitation expenditures (QREs), with an additional 5% for projects meeting specific standards, including low-income housing. The California HTC, which is allowed for taxable years beginning Jan. 1, 2021, to Dec. 31, 2025, was enacted in 2019, but requires the Legislature to provide appropriations for each year. A public hearing on the regulations will be Dec. 19 and a vote to adopt the regulations is expected at the Jan. 18, 2023, CTCAC meeting. Comments may be sent to [email protected] by Dec. 29.

The Novogradac Historic Rehabilitation Handbook provides an overview of the HTC and the intricacies of the incentive.