Historic Tax Credits News Briefs - December 2021
Legislation introduced in Florida in October would create a state historic tax credit (HTC) worth 20% of qualified rehabilitation expenditures (QREs), with a 30% credit for properties in areas designed as part of the Florida Main Street Program. H.B. 247 would apply to income-producing properties that are rehabilitated and placed in service July 1, 2022, or later. Properties with more than $750,000 in QREs would be required to submit an audited cost report. The credit would be for 20% of QREs for properties that receive the federal HTC, with properties in the local program area of an accredited Main Street Program receiving the 30% credit. The credit would offset the corporate income tax and insurance premium tax.
An Alabama Department of Revenue administrative rule took effect Oct. 15, amending the state’s HTC to allow the recipient of an HTC transfer to claim a refund for the difference if their taxes owed are less than the tax credit in the year the property is placed in service. The change to Rule 810-3-137-.02 also strikes a provision stipulating that once a credit is transferred, it is nonrefundable and cannot be carried forward.
HTCs were used in two brick-building rehabilitations one-quarter of a mile apart in Kearney, Nebraska. More than $80,000 in state and federal HTC equity was used to rehabilitate the commercial bay and second story of The Hibberd Block. Building began in 2018. The second floor became a trio of apartments. The same developer received $125,000 in state and federal HTC equity to rehabilitate the Lowe and Fair Commercial Space, which started construction earlier this year.
Mascoma Bank and Claremont Savings Bank invested federal HTC equity for the rehabilitation of the Monadnock Mills building in Claremont, New Hampshire. The 54,000-square-foot building is set to become 80 apartments with a mixture of studio, one- and two-bedroom homes. It is the third in a trio of mill buildings along the Sugar River to be restored in Claremont. Chinburg Properties from Newmarket, New Hampshire, is developing the building.
Twain Financial Partners invested HTC equity and commercial property assessed clean energy financing for the rehabilitation of the Ramova Theater in Bridgeport, Illinois. The $28 million renovation by co-developers Baum Revision LLC and Our Revival Chicago LLC will return the theater to its origins as a live music venue with 1,800 capacity as well as a bar and grill, craft brewery/tap room, patio and parking lot. The venue opened in 1929 and closed in 1985.