Florida Legislation Would Create State-Level HTC

Thursday, October 14, 2021 - 9:30am

Legislation introduced in Florida this week would create a state historic tax credit (HTC) worth 20% of qualified rehabilitation expenditures (QREs), with a 30% credit for properties in areas designed as part of the Florida Main Street Program. H.B. 247 would apply to income-producing properties that are rehabilitated and placed in service July 1, 2022, or later. Properties with more than $750,000 in QREs would be required to submit an audited cost report. The credit would be for 20% of QREs for properties that receive the federal HTC, with properties in the local program area of an accredited Main Street Program receiving the 30% credit. The credit would offset the corporate income tax and insurance premium tax. Florida is the only state bordering the Atlantic Ocean without a state-level HTC.

The Novogradac Historic Rehabilitation Handbook provides an overview of the HTC and delves into the intricacies of the incentive, including the interaction of federal and state credits.