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Historic Tax Credits News Briefs – July 2018

Missouri S.B. 590 was enacted May 18 to reduce the annual state historic tax credit (HTC) program cap from $140 million to $90 million, with the possibility of an additional $30 million in tax credits for developments in qualified census tracts. The bill is effective Aug. 28. SB 590 is available at www.historictaxcredits.com.

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The Colorado state HTC was extended through 2029 and the amount of the credit was increased for structures in disaster areas or rural communities after the Job Creation and Main Street Revitalization Act became effective May 30. HB18-1190 also makes several other changes, including that the annual $10 million cap must be equally split between projects with qualified rehabilitation expenditures greater than $2 million and projects with less than $2 million. The bill is available at www.historictaxcredits.com.

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The U.S. Department of the Interior and the National Park Service announced May 29 a combined $60.3 million in historic preservation grants. A total of $48.9 million will go to U.S. states, territories and partnering nations, and $11.4 million will go to 175 tribal historic preservation offices. The funds are available through the Historic Preservation Fund. 

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The Texas Comptroller of Public Accounts announced guidance late May regarding certified historic structure tax credits. Private Letter Ruling No. 201804014L, dated April 5, states that the taxpayer is a Texas entity that owns a historic structure and anticipates selling the credits to a taxable entity that will claim the credits on a franchise tax report. The purchase date of the credit is not relevant as long as the credit is allowed for the report period and is claimed by the final due date of the report. There is no requirement for the taxpayer to sell tax credits derived from the structure in the year the credits are established. The taxpayer can sell, transfer or assign all or part of a credit derived from the structure without limitation. The first report on which the credit can be claimed is the report based on the accounting period during which the structure is placed in service. The statute of limitations on claiming the credit carryforward begins the first year the credit is eligible to be claimed. 

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Heritage Consulting Group announced May 23 the historic rehabilitation of Riverview West into luxury apartments. Developer D&D Realty transformed the Wilkes-Barre, Pa., office building into 40 luxury apartments with one floor of office space. In addition to the use of federal HTCs, the building was selected through a competitive process to receive state HTCs. The 11-story tower was built in 1906.

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Plans to install apartments at the May Co. building in Cleveland were underway May 24. Developer Bedrock plans to open 308 suites in 2020, with 154 one-, 140 two- and 14 three-bedroom apartments. Construction is expected to cost $140 million. Financing includes $30 million in state HTCs. Plans for the May Co. include potential mixed-use redevelopment of the building. 

Journal Category:

Historic Tax Credits

Authors:

Novogradac

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