Missouri Legislation Would Add Set-Aside to State HTC, Make Other Changes

Wednesday, January 11, 2023 - 1:15pm

A bill introduced in the Missouri House of Representatives would increase the percentage for the state historic tax credit (HTC), add a set-aside for “essential community or heritage facilities” and allow construction to begin within 18 months of the date of approval. H.B. 3061 would reserve $5 million per year in tax credits for historic county courthouses in qualifying counties and other vacant structures that are significant in the history, architecture, archeology or culture of the state. Those properties would be eligible for the lesser of 50% of total costs or $500,000. The current 25% state HTC would increase to 35% for projects in qualifying counties under a provision of the legislation. The bill would also require that $90 million of the annual statewide HTC cap would be only for properties not in qualified census tracts (QCTs), with an additional $30 million for those properties that are in QCTs. Properties in qualified census tracts could qualify for the remainder of the cap after the $30 million was exhausted. The bill would also allow rehabilitation to begin within 18 months of the date of approval, rather than the current period of within nine months.

The Novogradac Introduction to Historic Tax Credits booklet provides insight into the state and federal HTC.