Sign Up For Novogradac Industry Alert Emails

REVISED HISTORIC TAX CREDIT MODERNIZATION BILL INTRODUCED

Monday, July 11, 2011 - 7:00AM

On Friday, July 8, Reps. Aaron Schock, R-Ill., and Earl Blumenauer, D-Ore., introduced H.R. 2479, the Creating American Prosperity through Preservation Act (CAPP) of 2011. The CAPP Act would make five changes to the federal historic tax credit (HTC). The bill would provide a boost to 30 percent for small deals of less than $5 million in qualified rehabilitation expenditures and provide a 2 percent HTC boost for achieving energy use savings at least 30 percent greater than established industry standards for similar buildings. The CAPP Act would also eliminate the federal taxation of the proceeds of a state HTC transaction for both state credit certificate sales and credits allocated through partnerships. The bill would also expand the number of properties that qualify for the HTC by indexing the eligibility date for the 10 percent non-historic rehabilitation tax credit so that both 20 percent and 10 percent credits would apply to buildings 50 years and older. And finally, supporters of the CAPP Act say it would help target the HTC’s impact to low-income communities by allowing not-for-profits to act as HTC project sponsors and building tenants.  

Tune in tomorrow to the July 12 Tax Credit Tuesday podcast to hear Michael J. Novogradac, CPA, discuss the Creating American Prosperity through Preservation Act (CAPP) of 2011 and its prospects for passage.

Learn more about Novogradac's expertise and many services