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Historic Tax Credits News Briefs - April 2014

In mid-March, the National Park Service (NPS), in partnership with Rutgers University, released the Federal Tax Incentives for Rehabilitating Historic Buildings Annual Report for Fiscal Year 2013, and the Statistical Report and Analysis for Fiscal Year 2013. The report stated that more than 1,000 proposed projects and $6.73 billion in rehabilitation work were approved. It also indicated that there were 803 completed projects and $3.39 billion in rehabilitation work was certified. There were nearly 63,000 jobs created by completed projects, and there were more than 7,000 new low- and moderate-income housing units and more than 25,000 new or renovated housing units overall. The statistical report and analysis found that more than half of state HTC programs can be used in tandem with federal HTCs. The report also said that more than 39,600 rehabilitation projects have been undertaken since 1977, the year the first HTC project was completed. The report and accompanying statistical analysis are available at www.historictaxcredits.com.

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On Feb. 26, the Louisiana Department of Revenue released Revenue Information Bulletin (RIB) No. 14-007, which establishes final guidelines for the Louisiana Rehabilitation of Historic Structures tax credit. The state historic preservation office (SHPO) will determine the eligibility of a project through a three-part application process. If approved, the applicant must submit a certified audit report or examined cost certification to claim the credit. To claim or transfer the credit, an applicant must follow the set procedure found in the Louisiana Tax Credit Registry Act and RIB 14-005. The Louisiana Department of Revenue also reserves the right to audit any credit claimed or transferred. The RIB is available at www.historictaxcredits.com.

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Colorado H.B. 14-1311 was introduced on March 7. Also known as the Colorado Job Creation & Main Street Revitalization Act, the bill would create a state historic preservation tax credit. The bill requires a four-year annual transfer of $15 million from the capital construction fund, beginning with the 2015-2016 state fiscal year and concluding with the 2018-2019 state fiscal year to fund the program. The tax credit is 30 percent of qualified rehabilitation expenditures that are less than $2 million; the credit is 25 percent for expenditures between $2 million and $4 million; and the credit is 20 percent for expenditures that are more than $4 million. The transaction cap is $2 million. Buildings in federally declared major disaster areas would be eligible for an additional 5 percent in credits for qualified rehabilitation expenditures. Eligible projects must be certified by the SHPO. The bill was assigned to Finance and Appropriations at press time. The bill is available at www.historictaxcredits.com.

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The Advisory Council on Historic Preservation (ACHP) released the report “Managing Change: Preservation and Rightsizing in America” in March. The report identified historic preservation policy needs in community renewal efforts and provided policy recommendation for all levels of government. The ACHP’s Rightsizing Task Force focused on the effects of rightsizing in legacy cities, communities developed at the height of the industrial revolution as centers of industry, commerce, business, and employment throughout the New England, Mid-Atlantic, and Midwest regions across the country. Rightsizing is the process of reducing to an optimum size. It found that federal resources are not generally involved with the implementation of comprehensive historic preservation plans. However, it found that the Federal Historic Preservation Tax Incentives program offers the greatest public financial stimulus to the redevelopment of historic properties. The report stated that tax incentives at all levels are strong inducements for integrating historic preservation into rightsizing response efforts. The report is available at www.historictaxcredits.com.

Journal Category:

Historic Tax Credits

Authors:

Novogradac

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