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Historic Tax Credits News Briefs - August 2023

NPS will host an in-person advanced training Sept. 26 in Washington, D.C., to help consultants, architects, developers and others navigate its Federal Historic Preservation Tax Incentives Program. The training is geared toward those well-versed in the program and seeks to improve applications and address potential challenges on the path to possible approvals. Visit NPS’ website for additional information about the location of the training.

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Georgia released guidance earlier this year revising the regulations that apply to the state’s HTC, including an extension of the sunset date to Dec. 31, 2027. The guidance amends and clarifies language relating to the total amount of preapproved credits per calendar year for historic homes, structures and homes earning $300,000 or less in credits completed in 2022, and for structures other than historic homes.

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Ohio in June announced the awarding of $50 million in HTCs for 38 endeavors in the Buckeye State. The Ohio Department of Development anticipates the developments to leverage approximately $523 million in public and private financing. Sixteen communities, including properties in Akron, Columbus, Cincinnati, Cleveland and Toledo, received awards.

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Legislation in Alabama that took effect in June makes changes to the state HTC, including increasing the minimum age for a historic structure to qualify to 75 years for credit applications submitted after June 1, 2023, and extending the $20 million annual statewide cap through 2027. H.B. 253 also allows the state HTC to be claimed in the year a credit reservation is allocated to a project, permits the Alabama Historical Commission to use up to an additional $5 million to reduce the backlog of qualified applicants and limits to $200 million to total credits that can be reserved from May 25, 2017, through Dec. 31, 2027.

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Monarch Private Capital provided in June $1.6 million in federal and state HTC equity to Elevance Health for the second phase of renovations of the National Women’s Hall of Fame in Seneca Falls, New York. Plans for the second phase involve expanding the hall’s gallery and gathering space, rehabilitating its spiral staircase, making extensive improvements on the exhibition hall for its 302 inductees, and preserve and restore the former Seneca Knitting Mill’s smokestack adjacent to the building.

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Louisiana Gov. John Bel Edwards in late June signed legislation to extend the state HTC through Jan. 1, 2029, and increase the tax credit percentage to 25% of qualified rehabilitation expenditures (QREs) as of Jan. 1, 2023. H.B. 483 also adds a provision that increases the HTC percentage to 35% for properties in a rural area, which is defined as a parish with a population of less than 100,000, a municipality with a population of less than 35,000 or an unincorporated area of a parish that has a population of more than 100,000. The state HTC previously was for 20% of QREs and had a sunset date of Jan. 1, 2026.

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The Advisory Council on Historic Preservation in June adopted a Climate Change and Historic Preservation Policy Statement to acknowledge the connections between climate change and historic properties. The statement urges stakeholders to take steps to address the impacts in all stages of planning, including that for properties receiving the federal HTC. The statement lists 15 priorities, with calls for the impact to historic properties to be an integral part of climate adaptation planning and implementation, a survey and identification of historic properties to focus on areas with the highest potential for climate impacts, permitting and environmental review of clean energy projects and climate-friendly transportation projects to be expedited while ensuring full consideration of potential impact to historic properties and more.

Journal Category:

Historic Tax Credits

Authors:

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