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Historic Tax Credits News Briefs - February 2014

On Dec. 17, the Advisory Council on Historic Preservation (ACHP) announced it will assist the Federal Emergency Management Agency (FEMA) through the designation of a prototype programmatic agreement (PPA). FEMA will use the PPA to develop Section 106-compliant agreements so that FEMA programs may assist communities through disaster recovery efforts while still meeting federally mandated preservation requirements. FEMA will use the PPA to negotiate state-based agreements that provide consistency in environmental reviews for historic buildings.

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The Rhode Island Division of Taxation awarded historic tax credits (HTCs) to 27 applicants in December. Rhode Island held an application lottery in August for $34.5 million in previously abandoned tax credits. In order to receive the HTCs, applicants had to provide documents to the Rhode Island Historical Preservation and Heritage Commission by Dec. 1.

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Virginia Tax Commissioner Craig M. Burns released Public Document Ruling No. 13-225 on Dec. 17, 2013. It addresses a ruling request for sales of land preservation tax credits and Virginia taxable income. The ruling was in response to a letter dated May 31, 2012 requesting that Virginia disregard the federal treatment of income from deemed sales of land preservation tax credits by partnerships. The ruling stated that the Internal Revenue Service’s (IRS’s) recharacterization of the taxpayer’s income to the deemed sales of the tax credits will not result in any change to the taxable income for years 2003 through 2009. The commissioner cited the state HTC, stating that the treatment of the deemed sales is different from what it was in 2007 and, therefore, such gain or income is subtracted from federal adjusted gross income when computing state taxable income. However, the commissioner also found that the taxpayer is required to file amended Virginia income tax returns for these years.

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The Ohio Development Services Agency on Dec. 20 announced the award of $33 million in Round 11 state historic preservation tax credits to rehabilitate 31 historic buildings. Located across 10 communities, the properties include 264 Broadway Avenue in Youngstown, Mahoning County; May Company Apartments in Cleveland, Cuyahoga County; the Citizens Building in Columbus, Franklin County; and Hamilton County Memorial Hall in Cincinnati, Hamilton County.

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The Maryland Sustainable Communities Rehabilitation Tax Credit program will provide a combined total of $10 million to 10 historic buildings. The credits were announced on Dec. 23. Buildings to receive credits include The Baltimore Trust Company Building, which will receive $3 million for the conversion from office space to residential apartments and commercial retail space, and a former hotel in Cumberland, which will receive $1.5 million for conversion into residential apartments.

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WinnDevelopment in December received $300,000 in state HTCs from the Massachusetts Secretary of State’s Office for the transformation of the Ludlow Mills into a senior housing development. The development is part of a larger plan to renovate 60 buildings on 170 acres, and convert them into residential, commercial and light industrial uses. The $24.5 million reconstruction of the property will provide 83 units in building 10 of the Ludlow Mills. The development has received $1.9 million in state HTCs to date. Construction is expected to begin by the end of 2014.

Journal Category:

Historic Tax Credits

Authors:

Novogradac

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