Historic Tax Credits News Briefs – June 2020

Friday, June 5, 2020

Historic Tax Credits Briefs

The Internal Revenue Service on May 22 published in the Federal Register proposed amendments to Treasury Regulation 1.47-7 concerning the historic tax credit (HTC), including rules to coordinate the new five-year period over which the credit may be claimed with other special rules for investment credit property. The proposed regulations include a general rule for calculating the HTC, definitions of “ratable share” and “rehabilitation credit determined,” and rules coordinating the changes to Internal Revenue Code (IRC) Section 47 with special rules in Section 50 related to dispositions, basis adjustment and income inclusion. The proposed regulations will assist taxpayers in understanding the changes to IRC Sections 47 and 50 and make it easier for taxpayers to comply with those changes. Comments on the proposed regulations are due July 21. The July issue of the Novogradac Journal of Tax Credits will include analysis of the proposed regulations.

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The National Trust for Historic Preservation and nearly 400 other organizations sent a letter April 30 to the leaders of the House of Representatives and U.S. Senate, asking for provisions affecting the historic tax credit (HTC) to be included in future COVID-19 legislation, along with funding for several other historic preservation programs. The letter asks for provisions of the Historic Tax Credit Growth and Opportunity Act of 2019 be included, as well as a temporary increase in value of the HTC from 20 percent of qualified rehabilitation expenditures. Increased funding for several historic preservation programs are also sought in the letter.

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Twain Financial Partners announced April 21 the investment of $1.6 million in federal HTC equity for the historic renovation and adaptive reuse of the Charles River Speedway in Boston. Upon completion, the development will be a mixed-use complex that includes a brewery, restaurant, event and office spaces and spaces for small retailers. Construction is expected to be completed in December. 

Journal Category: 
Historic Tax Credits
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