Sign Up For Novogradac Industry Alert Emails

Historic Tax Credits News Briefs - March 2022

Maryland Gov. Larry Hogan’s fiscal year 2023 budget proposal includes $12 million in funding for the state historic tax credit (HTC) incentive, an increase from $9 million from recent years. Hogan’s budget includes that amount for the state HTC, due to the passage last year of S.B. 885, which required at least $12 million in annual HTC funding. While legislation creating the state HTC in Maryland imposed no annual cap, funding for the state HTC had been $9 million for several years.

***

PNC Bank and The Kresge Foundation announced $57.3 million in financing to support Marygrove P-20 Project at the site of the former Marygrove College in northwest Detroit. The endeavor includes the conversion of the campus’ liberal arts and Immaculata buildings on into K-12 facilities. PNC lending and providing tax credit equity, including a $7.3 million HTC equity investment for the renovation of the liberal arts building through its tax credit solutions group.

***

The Georgia Department of Revenue adopted amendments to regulations concerning the state HTC for taxpayers who were previously denied or granted prorated credits for a structure that earned more than $300,000 due to the overall state cap being met for any of the past five years. The updated regulations allow those taxpayers who met the standards for the HTCs to submit electronic Form IT-RHC-AP for the additional credit amounts this year.

***

A bill was heard in Maryland’s House Ways and Means committee in January that would extend the state HTC sunset date to 2031 and establish a small commercial project trust account. H.B. 27 would create a small commercial project trust account with a set-aside of at least $4 million annually. The legislation also requires the governor to set aside $12 million annually in 2023 and 2024, $24 million annually in 2025 and 2026 and $36 million annually for 2027 through 2031 for the HTC reserve fund.

***

The Iowa Economic Development Authority announced Feb. 10 it awarded $22 million in state historic tax credits (HTCs) to six properties. The buildings include a former school building as well as a millwork factory. The largest recipient is the former Roshek Brothers Department Store in Dubuque, which received $5.7 million in HTCs for a rehabilitation to expand office space. Rehabilitations in Sioux City, Des Moines and Winterset also received HTC allocations.

***

Legislation in New York to increase the annual cap for the state HTC beginning this year was referred in January to the Assembly Ways and Means Committee. A.B. 7298 would increase the annual state cap from $5 million to $7 million this year and to $9 million in 2023 and 2024. New York’s HTC for commercial properties is for 20% of qualified rehabilitation expenditures (QREs). Small projects with QREs of $2.5 million or less can receive a credit worth 150% of the federal credit.

***

A bill introduced in January in the Virginia House of Representatives would double the state’s annual taxpayer cap on its HTC incentive to $10 million. H.B. 1219 would increase the amount that has been in effect since Jan. 1, 2017. Virginia’s HTC is for 25% of QREs.

***

The Michaels Organization and Stark Metropolitan Housing Authority will combine low-income housing tax credits and a recent $2 million award of state HTCs to redevelop McKinley Park Apartments in Canton, Ohio. Built in 1967, the property is an 11-story, 81-unit high-rise developers plan to rename City View Apartments. The $14.5 million development will serve seniors earning up to 60% of the area median income.

Journal Category:

Historic Tax Credits

Authors:

Novogradac

Learn more about Novogradac's expertise and many services