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Historic Tax Credits News Briefs - June 2014

The Nebraska Job Creation and Mainstreet Revitalization Act (L.B. 191), was signed into law April 17. The act provides a 20 percent tax credit for eligible expenditures to historically significant property. This includes property listed in the National Register of Historic Places, property located within a district listed in the National Register or a property determined to be historically significant. The available credit amount is up to a maximum of $1 million. The annual cap is $15 million. Applications for credits will not be accepted prior to Jan. 21, 2015, and credits may be claimed for taxable years beginning on or after this date. Credits are subject to recapture if, during the five years after the property is placed in service, the state historic preservation officer determines the rehabilitation of the property did not meet the criteria in the approved application. If recapture occurs during the first year after the property is placed into service, 100 percent of the credit may be recaptured. The amount decreases 20 percent for each following year. The bill is available at www.historictaxcredits.com.

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Alabama H.B. 509 was signed into law April 10. The bill clarifies that historic tax credits are awarded on a calendar year basis and allows the tax credit to be transferred in a one-time transaction. Tax credit provisions such as transaction cap, annual cap and carry forward remain unchanged. Alabama H.B. 509 is available at www.historictaxcredits.com.

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On April 17, the Advisory Council on Historic Preservation (ACHP) issued, “Preserving Historic Post Offices: A Report to Congress.” The report, which was published in response to a requirement in 2014 appropriations legislation, provides information about the U.S. Postal Service’s (USPS’s) historic properties, disposal procedures and Section 106 compliance to date. The ACHP provided suggestions on how to streamline the preservation process, including that USPS should suspend any further actions to relocate services out of historic postal facilities and dispose of these historic facilities until it fully implements the recommendations of this report. Additionally, it recommended that the USPS expand and reorganize its historic preservation program; define the undertaking for Section 106 purposes as both the proposal to cease/relocate postal services and operations and the subsequent proposal to dispose of the historic property; and, in cooperation with the ACHP, work with the National Conference of State Historic Preservation Officers and other preservation partners to develop guidance for developers on covenants and historic property stewardship. The report is available at www.historictaxcredits.com.

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The ACHP last month moved to the Pension Building, a National Historic Landmark and home of the National Building Museum. The ACHP’s new address is 401 F Street NW, Suite 308, Washington, DC 20001-2637. All email addresses remain the same, but staff phone numbers have changed. The main line is now (202) 517-0200. More information is available at www.achp.gov.

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On April 17, Heritage Consulting Group announced the completion of the 1621 Bank Street rehabilitation. Funding was provided through historic tax credits, 9 percent low-income housing tax credits (LIHTCs) and Rental Housing Production program loan funds from Maryland’s Department of Housing and Community Development. HOME funds from the City of Baltimore’s Department of Housing were also provided. Mission First and The Henson Development Company worked to complete the rehabilitation, while Heritage served as the historic rehabilitation and tax credit consultant. Originally constructed in the 1860s as a station for the Baltimore City Police, the property now has 47 mixed-income apartments and ground-floor retail space. Rehabilitation work included window replacement, restoration of the original sally port opening and the construction of a four-story wood framed addition with a brick façade. Development costs totaled $13.6 million.

Journal Category:

Historic Tax Credits

Authors:

Novogradac

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