Sign Up For Novogradac Industry Alert Emails

Historic Tax Credits News Briefs - January 2013

U.S. Sen. Charles Schumer, D-N.Y., announced support for extending the New Markets Tax Credit and passing the Creating American Prosperity Through Preservation (CAPP) Act as two priorities in his tax extenders package. The CAPP Act would increase the historic tax credit (HTC) from 20 percent to 30 percent of investment costs for projects under $7.5 million and make more buildings eligible for the credit. The CAPP Act also provides additional tax credits for energy-efficient redevelopment features and exempts state HTC proceeds from federal tax. Schumer said that the NMTC and CAPP Act would help leverage private investment and encourage construction efforts in Buffalo. Some buildings Schumer named as ones that would benefit from the NMTC extension and passage of the CAPP Act were the 90-year-old Statler Hotel, the 1970 H.H. Richardson Complex and the AM&A Building.

***

The vacant Schmidt Brewery in St. Paul, Minn. was recently purchased by Plymouth, Minn.-based developer Dominium for $6.2 million and will be developed into rental lofts for artists. The planned $123 million redevelopment of the property includes 147 housing units in the brew house and 100 units in the bottle house, with many units affordable to low-income tenants. There will also be 13 townhouses adjacent to the bottle house. Gallery, performance and studio space will be available to residents and Dominium will incorporate some of the brewery’s old tanks and equipment into the property’s design. The development received $70 million in state HTCs and low-income housing tax credits (LIHTCs). Some units are expected to be ready for move-in by late 2013 and the rest of the development is expected to be completed by summer 2014.

***

The Iowa Department of Cultural Affairs announced the formation of a stakeholder group to help improve the application and review process for the HTC. The group will also help streamline the sequencing process, filing-window portion and overall communication with the state historic preservation office. The goal of the group is to make the tax credit program more user-friendly for developers, architects, real estate companies, design firms and other affected parties. Iowa’s State Historic Preservation and Cultural & Entertainment District Tax Credit program provides an income tax credit of 25 percent of qualified rehabilitation costs, with an additional 20 percent if an income-producing property qualifies for the federal HTC. More information is available at www.legis.iowa.gov.

***

The National Park Service (NPS) announced the revision of the fees it charges for reviewing historic preservation certification applications. Application review will now be free for projects with rehabilitation costs up to $80,000; $845 plus 0.15 percent of rehabilitation costs over $80,000 for projects that cost between $80,000 and $3,849,999; and $6,500 for projects with rehabilitation costs of $3.85 million or more. Half of the payment will be due to NPS upon receipt of the description of rehabilitation and the other half will be due upon receipt of the request for certification of completed work. NPS application review fees were established in 1984 under Section 47 of the Internal Revenue Code and have remained unchanged until now because no provisions were set for adjusting the fees over time. The notice can be found at www.historictaxcredits.com

***

The National Housing & Rehabilitation Association (NH&RA) and the National Trust Community Investment Corporation released the list of 2012 J. Timothy Anderson Awards for Excellence in Historic Rehabilitation. The “Timmy” Awards annually recognize 10 developers, architects and historic preservation professionals for excellence in historic rehabilitation. Because of Hurricane Sandy, NH&RA was forced to cancel the Timmy Awards presentation and ceremony originally scheduled for Oct. 30 at the Langham Hotel in Boston. Winners are now scheduled to receive recognition in February 2013 in Washington, D.C. in conjunction with the NH&RA’s “Historic Tax Credit Lobby Day,” which will be held in partnership with the Historic Tax Credit Coalition and the National Trust for Historic Preservation.

Journal Category:

Historic Tax Credits

Authors:

Novogradac

Learn more about Novogradac's expertise and many services