Historic Tax Credits News Briefs - July 2013

Monday, July 1, 2013

Minnesota enacted H.F. 677, legislation that includes a provision to extend and expand the state’s historic structure rehabilitation tax credit. The program is now scheduled to sunset in 2021 and offers a 20 percent state tax credit. In addition, the new law allows the state historic preservation office of the Minnesota Historical Society to collect an application fee of 0.5 percent of qualified rehabilitation expenditures up to $40,000. The fee was previously $5,000. It is expected that as a result of these changes, some projects that were in the pipeline when the credit became available in 2010 are now able to qualify for the program, although some projects may end up paying higher application fees than they would have in 2010. The bill can be viewed at www.historictaxcredits.com.

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H.R. 2042, the Preserving America’s Downtowns and Heritage Act of 2013, was introduced on May 17. The bill would amend the Internal Revenue Code (IRC) of 1986 to increase the rehabilitation credit for commercial buildings and to provide a rehabilitation credit for principal residences. H.R. 2042 is sponsored by Rep. David B. McKinley, R-W.Va. The bill would also increase to 25 percent the federal historic tax credit (HTC) for certified historic structures, and the tax credit for buildings other than certified historic structures to 12.5 percent. H.R. 2042 would also provide a 20 percent tax credit for the rehabilitation of historic principal residences. The bill has been referred to the House Ways and Means Committee.

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The Ohio Development Services Agency released its 2012 annual report on the Ohio Historic Preservation Tax Credit program. The 2012 report highlights 156 rehabilitated developments were allocated a total of $327 million in credits. Completed rehabilitation projects ranged from $400,000 to $75 million in total project investment. The program is administered by the Ohio Development Services Agency, the Ohio Historical Society and the Ohio Department of Taxation. A copy of the report can be found at www.historictaxcredits.com.

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Leonard Forsman, chairman of the Suquamish Tribe in Suquamish, Wash., was appointed by President Barack Obama, to be a member of the Advisory Council on Historic Preservation (ACHP). Forsman has also been vice president of the Washington Indian Gaming Association since 2010, a member of the Washington State Historical Society Board since 2007, the Suquamish Tribal Cultural Cooperative Committee since 2006 and the Tribal Leaders Congress on Education since 2005. Forsman earned a B.A. in anthropology from the University of Washington, and an M.A. in historic preservation from Goucher College. Forsman is scheduled to be sworn in on July 18 in Washington D.C.

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Metropolitan Artist Loft Apartments received a 2013 Most Enhanced award from the Landmarks Association of St. Louis. Dominium, an apartment development and management company, invested $20 million to renovate the building into an affordable housing property for artists. Open since November 2012, the building comprises 72 one- and two-bedroom apartments. Also in the building are studios for painters, sculptors and clay artists, as well as sound studios and a dance studio. Originally built in 1908, the Metropolitan is located in the Grand Center Arts District in St. Louis. The winners were honored by the nonprofit organization at a ceremony on May 15.

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The 2013 Cliveden Heritage Award was presented to Rep. Allyson Y. Schwartz, D-Pa., in May. Rep. Schwartz was presented this award for her commitment to public service and historic preservation work. The award is presented to philanthropists, curators, public servants, business leaders, historians and educators for their contributions to Cliveden, a historic mansion in Philadelphia’s Germantown neighborhood, and to the communities of northwest Philadelphia.

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