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Historic Tax Credits News Briefs - June 2017

The Advisory Council on Historic Preservation (ACHP) released new guidance in late April for American Indian Tribes. The guidance explains Section 101(d)(5) of the National Historic Preservation Act. The section was included in 1992 amendments to the act and allows the ACHP to enter into agreements with Native American tribes to substitute tribal historic preservation regulations for the ACHP’s regulations on tribal lands. The guidance is intended to help tribes in their decision-making processes regarding whether and how to enter into Section 101(d)(5) agreements and to provide insight into the ACHP’s interpretation of Section 101(d)(5). Topics included in the guidance concerning definitions, documentation and substitutions. A copy of the guidance is available at www.achp.gov.

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The Nebraska Department of Revenue updated May 1 its online instructions for the Nebraska state historic tax credit (HTC) application form. Parts 4 and 5 of the application form now read that applicants who receive an allocation of credits and approval for a completed rehabilitation project from the Nebraska State Historic Preservation Office must submit a request for certification of credits. If applicable, participants must file Part 5 to report the transfer, sale, assignment or distribution of credits. Credits may be used to offset income tax, premium tax imposed on insurance companies or the franchise tax imposed on financial institutions. In addition, the Nebraska Department of Revenue has updated the general information section of its state HTC Web page April 20. The page for the Nebraska Job Creation and Mainstreet Revitalization Act includes updated information on eligibility for the credit, the application, tax credit allocation and certification process, calculation of expenditures, types and transferability of the state HTCs, issuance of the state HTCs, claiming the state HTCs and under what circumstances the department will recapture state HTCs. The guidance is available at www.revenue.nebraska.gov.

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Ryan Zinke, U.S. Secretary of the Interior, announced April 27 $26.9 million in historic preservation grants to every U.S. state, the District of Columbia, U.S. territories and partnering nations. Also awarded was $5.7 million in grants to more than 160 tribes for cultural and heritage preservation projects on their tribal lands. These funds are a part of annual appropriations from the Historic Preservation Fund (HPF), which provides grants to states, tribes, local governments and nonprofit organizations to fund preservation programs at state historic preservation offices and ensure support of local preservation. The HPF also provides funding to tribes to preserve cultural and heritage resources. Awards ranged from $137,044 to $637,163 for the state grants, and from $27,420 to $57,505 for tribal grants. This year’s HPF grant funds were appropriated under the Continuing Resolution Act 2017. 

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Developer Larry Bicz announced in late April that the next phase of construction on the Parish Apartments is scheduled to begin soon. The 50,000-square-foot former St. Paul’s School in Kenmore, N.Y., was built in 1924. The property will be transformed into 37 market-rate apartments. There will be 28 one-bedroom apartments and eight two-bedroom apartments, as well as one loft. The gymnasium and stage must remain historically intact and will be available for commercial space and as a meeting space. In addition, a new hall is under construction at the rear of the school’s church. Bicz said in an article in Buffalo News that Parish Apartments should open in October or November. Bicz received $1.6 million in federal and state HTCs for the redevelopment. Redevelopment costs are expected to total $5 million.

Journal Category:

Historic Tax Credits

Authors:

Novogradac

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