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Historic Tax Credits News Briefs - May 2012

The Department of the Interior (DOI) announced $46.9 million in National Preservation Grants that will enable recipients across the country to preserve historic sites. State officials use the grants to fund preservation-related efforts such as survey and inventory, National Register nominations, preservation education, architectural planning, historic structure reports, community preservation plans, and building repair. The grants are funded by the Historic Preservation Fund, which is supported by revenue from federal oil leases and encourages investment in historic preservation efforts. For more information and a list of recipients, visit www.doi.gov.

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BRIDGE Housing held a grand opening for St. Joseph’s Senior Apartments in Oakland, Calif. The community provides 84 apartments for very-low-income seniors and 3,200 square feet of commercial space within the former main building of the historic St. Joseph’s Home for the Aged. Insurmountable costs of needed modernization had forced the building to close in 1979. The main building’s rehabilitation and adaptive reuse included seismic upgrades and meets state historic preservation standards. Amenities include a community room, a courtyard garden, and lobby areas. The $38 million development was financed by equity from federal historic tax credits (HTCs) and 4 percent low-income housing tax credits (LIHTCs). Financing partners included the city of Oakland, Oakland Redevelopment Agency, Union Bank, U.S. Bank, and the California Department of Housing and Community Development..

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Virginia Gov. Bob McDonnell signed legislation in March that clarifies the state tax treatment of historic tax credit transactions. H.B. 531 provides that any gain or income under federal law relating to the allocation or application of the historic rehabilitation tax credit is not considered gain or income for Virginia income tax purposes. The law will take effect on July 1.

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The Illinois Legislature is considering a bill that would allow Illinois historic rehabilitation tax credits to be sold or transferred. The bill, S.B. 2886, is designed to enhance the state’s Historic Rehabilitation Tax Credit Act by attracting more financial backing to historic rehabilitation projects through private investors. The program provides state tax credits equal to 25 percent of rehabilitation costs for qualifying historic properties in River Edge Development Zones. These zones include areas of Aurora, East St. Louis, Elgin, Rockford, and soon, Peoria. Under S.B. 2886, tax credit recipients would be allowed to assign the credit to more than one assignee, and the credits could be transferred more than once. Not-for-profits would be eligible to be assignors or assignees. The legislation would also allow any unused tax credits claimed by the assignee to be carried forward for as many as 10 years or carried back for one year under the bill. S.B. 2886 is under review in the House after the Senate passed the measure in March. A copy of the bill is available at www.historictaxcredits.com.

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The Massachusetts Department of Energy & Environmental Affairs (EEA) announced that it is accepting tax year 2012 applications for the Conservation Land Tax Credit program. Established last year, the program offers landowners a state income tax credit worth 50 percent of the appraised value of donated qualifying conservation land up to a maximum of $50,000. Total program funding is capped at $2 million for each year. All donations must have significant natural resources in the public interest and protect land in perpetuity. Donation must occur during calendar year 2012 to be eligible. EEA will accept applications on a rolling basis. Details are available at www.mass.gov.

Journal Category:

Historic Tax Credits

Authors:

Novogradac

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