Historic Tax Credits News Briefs - July 2021

Thursday, July 8, 2021

Gov. Brian Kemp signed a bill May 4 to extend Georgia’s state historic tax credit (HTC) by one year and provide a statewide cap for smaller projects. S.B. 6 addresses several tax provisions, including pushing the sunset date for the state’s HTC to Dec. 31, 2022. The legislation also established a $5 million statewide cap for all projects receiving $300,000 or less in credits. Previously, there was no statewide cap on those credits. The changes are effective July 1.

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Alabama extended its state’s HTC for five years when Gov. Kay Ivey signed legislation May 26. H.B. 281 extended the credit through Dec. 31, 2027, with a $200 million cap for credits reserved from May 25, 2017, through the end of 2027.

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A bill to boost Maryland’s annual statewide HTC cap for commercial endeavors with qualified rehabilitation expenditures of $500,000 or less was signed into law May 18 by Gov. Larry Hogan. S.B. 659 increases the cap to $5 million from $4 million as of July 1.

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Texas Gov. Greg Abbott vetoed a bill May 24 that would have ensured the Texas state HTC could be taken against the state insurance premium tax. S.B. 813 would have replicated key provisions from the description in the franchise tax code to the insurance code, ensuring that the HTC would survive if the franchise tax is repealed.

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Though legislation threatened to repeal Montana’s state HTC in May, the credit was preserved. S.B. 399, which was signed into law, included sweeping changes to Montana’s tax structure, including the elimination of some tax credits. A provision to remove the state’s HTC was taken out before the bill’s final passage.

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South Carolina legislation took effect in mid-May that allows a state HTC or state low-income housing tax credit to be passed through to members or partners of a partnership or limited liability partnership that is taxed as a partnership and allocated among any of its partners or members on an annual basis, including the allocation of the entire credit to any partner or member who held that position at any time during the year. S. 677 permits the allocation despite any provisions in the Internal Revenue Code or regulation based on the code. The amendment to South Carolina law applies to a qualified project placed in service after Jan. 1, 2020, and before Dec. 31, 2030, provided the project is issued an eligibility statement after May 14, 2020.

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The former Stillwater Armory in Stillwater, Minnesota, will be transformed into mixed-use property with luxury apartments and commercial space after the National Park Service approved a modified version of a CVII Holdings proposal using HTC. Funding for the newly renamed Fieldhouse 34 property includes federal and state HTCs. The development will create seven luxury apartments and approximately 12,000 square feet of commercial space. Construction was planned for completion in June.

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Historic Tax Credits
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