Kentucky Legislation Would Increase State HTC Caps, Make Other HTC Changes

Tuesday, February 16, 2021 - 11:30am

A bill introduced in the Kentucky House of Representatives would increase the statewide historic tax credit (HTC) cap, increase transaction caps and encourage rural development. H.B. 344 would increase the statewide annual cap from $5 million to $30 million and would increase the annual individual cap for non-owner-occupied property from $400,000 to $5 million. The bill would also allow a 30% state HTC for development in a rural county (defined as a county with a population of less than 50,000) and reserve 40% of the statewide cap for rural counties. The changes would take place after April 30. The Kentucky state HTC is currently for 30% of qualified rehabilitation expenditures for owner-occupied residential properties and 20% for other properties.

The Novogradac Introduction to Historic Tax Credits is a guide to the basics of the HTC incentive, both on a state and federal level.