Historic Tax Credits Briefs

Tuesday, May 9, 2017

National Park Service (NPS) released its annual report March 10 for fiscal year (FY) 2016, “Federal Tax Incentives for Rehabilitating Historic Buildings.” The report stated that NPS approved 1,299 federal historic tax credits (HTCs) projects worth $7.16 billion in rehabilitation costs in FY 2016. In addition, an estimated 108,500 jobs were created by the HTC in 2016 and a record 21,139 housing units were built or rehabilitated. An accompanying document, “Statistical Report and Analysis for Fiscal Year 2016,” states that in the 40-year history of the HTC program, 42,293 projects have been certified, worth more than $84 billion in investment. The report and analysis can be found at www.historictaxcredits.com.

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Virginia Gov. Terry McAuliffe signed S.B. 1034 into law March 24. The bill limits the amount of state HTCs that may be claimed by each taxpayer to $5 million per year, including any amounts carried over from prior taxable years. This bill applies to taxable years 2017 and 2018. This bill is identical to HB 2460 and is available at www.historictaxcredits.com.

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Arkansas S.B. 253 was enrolled March 7 to amend the state HTC caps. For projects that start on or after July 1, the credit is equal to 25 percent of the total qualified rehabilitation expenses up to $1.6 million on income-producing property. The credit cap for non-income-producing property is maintained at 25 percent up to the first $100,000 of qualified expenses with no time period limitation. Arkansas S.B. 253 is effective July 1.

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The Advisory Council on Historic Preservation (ACHP) March 15 released its report, “The National Historic Preservation Program at 50: Priorities and Recommendations for the Future.” The report, released in recognition of the 50th anniversary of the National Historic Preservation Act of 1966, analyzes the program and recommends policy and other actions for enhancing and improving the program. First, ACHP discusses the success of the program, stating federal HTCs have stimulated nearly $120 billion in private investment to rehabilitate commercial historic properties across the nation. In addition, more than 91,000 places have been listed on the National Register of Historic Places, including many rural districts and older neighborhoods, representing more than 1.8 million contributing historic resources. Recommendations are also included on how to maintain and strengthen public support; provide leadership and expertise; expand and encourage public engagement; encourage private investment; obtain financial support; improve preservation planning, processes and systems; address climate change, disaster planning and environment sustainability; promote collaboration and partnership; enhance further appreciation for heritage through education; recognize the full range of the nation’s heritage; advance equity and inclusion; and embrace and respond to cultures, views and concerns of indigenous peoples. The report is available at www.historictaxcredits.com.

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The Advisory Council on Historic Preservation (ACHP) met March 23 at the Capitol Visitor Center Auditorium in Washington, D.C. At the meeting, ACHP swore in Reno Keoni Franklin, newly appointed council member, who is chairman of the Kashia Band of Pomo Indians in northern California. Also at the council table was Alvin Windy Boy, vice chairman of the National Association of Tribal Historic Preservation Officers of the Chippewa Cree of Montana. He was a voting member. ACHP members discussed progress of the new administration transition, adopted changes to the ACHP operating procedures and discussed the ideas surrounding infrastructure and administration goals, the HTC, broadband deployment and youth engagement and job training.

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