Historic Tax Credits News Briefs - December 2021

Tuesday, December 7, 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.

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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.

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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.

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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.

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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.

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Historic Tax Credits
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