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Historic Tax Credits News Briefs - July 2012

Restoring Rhode Island’s historic tax credit (HTC) program may help stimulate the state’s economy, according to an evaluation by the Rhode Island Public Expenditure Council (RIPEC). The May installment of “Comments on Your Government” provides an overview of the credits as well as a summary of the potential costs and benefits of reinstating them. The General Assembly passed legislation in 2008 to bar new applicants from the state’s Historic Preservation Investment Tax Credit program and modify the program rules for projects still in progress. After the revisions, 15 projects with a total credit value of $25.9 million were abandoned. RIPEC recommends a temporary reinstitution of the program that would allow developers to apply for these outstanding credits and give the state the opportunity to evaluate their economic value. It would be of particular help to the state’s struggling construction industry, which has experienced a 32.5 percent employment decline since 2006, RIPEC said. A copy of the publication is available at www.ripec.org.

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The Presentation School Foundation Inc. broke ground on the rehabilitation of the Our Lady of the Presentation School in Brighton, Mass. The foundation will convert the 1929 parochial school in Brighton’s Oak Square neighborhood into the Presentation School Community Center, a multi-tenant center that will host programs for children, families and recent immigrants. The building is historically significant for its association with Irish immigration and the Catholic Church’s growth in Boston, according to Historic Boston Inc., which helped coordinate financial support for the project. The foundation raised $3.8 million for construction through grant proposals and fundraisers, MassDevelopment structured the project’s tax-exempt bond financing and MacRostie Historic Advisors syndicated the HTCs. Project financing also included a $1 million Massachusetts historic rehabilitation tax credit allocation.

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The Oklahoma Legislature adjourned without reaching agreement on an income tax cut measure that would have reduced the value of the state’s historic rehabilitation tax credit program. S.B. 1230 proposed reducing the top income tax rate to 5 percent in 2013 and 4.75 percent in 2014. To help pay for these cuts, the bill called for the elimination of more than 30 business tax incentives. Several other programs, including the HTC, would have been reduced by 20 percent and changed from transferable to refundable credits. A copy of S.B. 1230 is available at www.historictaxcredits.com.

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The National Trust for Historic Preservation released the 2012 list of America’s 11 Most Endangered Historic Places. This 25th annual list highlights important examples of the nation’s architectural, cultural and national heritage that are at risk of destruction or irreparable damage. This year’s list includes all historic U.S. Post Office buildings, which are threatened by a haphazard disposition process, and Sweet Auburn Historic District in Atlanta, Ga., the birthplace of Martin Luther King Jr. Other sites on the list are Bridges of Yosemite Valley, Calif.; Ellis Island Hospital Complex in New York Harbor, N.Y. and N.J.; Joe Frazier’s Gym in Philadelphia, Pa.; Malcolm X - Ella Little - Collins House in Boston, Mass.; Princeton Battlefield in Princeton, N.J.; Terminal Island, Port of Los Angeles, Calif.; Texas courthouses; and the village of Zoar, Ohio. More information about these historic sites is available at savingplaces.org.

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The National Trust Community Investment Corporation (NTCIC) and Octagon Finance recently partnered to form The Bridge Fund, which provides developers with the tax credit equity resources they need to get projects under construction. The Bridge Fund offers HTC bridge loans from $500,000 to $10 million, pre-fund historic tax credit equity, top-dollar equity investments and expedited project review and loan closing with a team of industry professionals. For more information, please contact Pete Goergen at (434) 760-2430 or [email protected].

Journal Category:

Historic Tax Credits

Authors:

Novogradac

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