Historic Tax Credits News Briefs - February 2021

Friday, February 5, 2021

Michigan Gov. Gretchen Whitmer signed legislation Dec. 30, 2020, that reinstated the state historic tax credit (HTC) through the end of 2030. S.B. 54 grants a state HTC for 25% of qualified rehabilitation expenses, with a statewide cap of $5 million and a per-taxpayer cap of $2 million. The legislation sets aside $2 million annually for large nonresidential historic resources, $2 million for small nonresidential historic resources and $1 million for residential historic resources–all reliant on there being at least that level of applications for the categories in a given year. The credit is effective for taxpayers who receive a certificate of completed rehabilitation after Dec. 31, 2020. Michigan’s previous state HTC expired in 2012.


Legislation introduced Dec. 2, 2020, in the House of Representatives would limit the ability of high-income taxpayers to benefit from tax deductions through syndicated conservation easement transactions–while providing a different timeline than a similar bill in the Senate when it comes to preserving historic buildings. H.R. 8842 is similar to a S. 4751, which was introduced in September 2020. The bills would deny a deduction for a partner’s allocable shares of a charitable contribution deduction when that share is more than 2.5 times the partner’s outside basis that is allocable to the real property for which the contribution was made. Both bills would apply to contributions made after Dec. 23, 2016, but the House bill includes an exception for contributions that had a conservation purpose in preserving a certified historic preservation. In that case, the limitation would take effect for tax years beginning after Dec. 31, 2018.


Legislation introduced in the New York Assembly Jan. 6 would allow the state HTC to be transferred. A. 899 would apply to the state’s 20% HTC and would be applicable to taxable years beginning on or after Jan. 1, 2022.


John Tess, founder of Heritage Consulting Group, announced Dec. 18, 2020, that Cindy Hamilton has been named president of the firm. Hamilton joined Heritage in 2004 and recently has focused on expanding client relations and business development. Tess will remain active with the firm, continuing as a company mentor and leading company’s Giving Back Program.


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Historic Tax Credits