North Carolina Budget Legislation Extends State HTC Sunset Date, Adds Education Building Bonus, Reinstates Credit for Railroad Stations

Tuesday, November 23, 2021 - 1:00pm

Budget legislation signed by Gov. Roy Cooper extended the North Carolina state historic tax credit (HTC) and reinstated and extends the state’s mill rehabilitation credit. The budget legislation extends the sunset date for the state HTC from Jan. 1, 2024, to Jan. 1, 2030. It also adds a 5% bonus for qualified rehabilitation expenditures (QREs) of up to $20 million if the property was originally used for educational purposes. The mill rehabilitation credit is effective for taxable years beginning on or after Jan. 1, 2021, and allows a state credit of 40% for a taxpayer who is allowed a federal HTC on QREs of at least $10 million with respect to the certified rehabilitation of an eligible railroad station. That credit also has a Jan. 1, 2030, sunset date.

The 2020 Novogradac Historic Rehabilitation Handbook provides an overview of the HTC and the intricacies of the incentive.