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Historic Tax Credits News Briefs - May 2013

St. Michael’s Church in Lower Price Hill, Cincinnati, Ohio, will generate $5.4 million in historic tax credits (HTCs) for renovation. The church, a five-building facility, will be used as a community gathering space with room for performance venues, art studios and a shelter for at-risk people. St. Michael’s, built in 1847, has changed hands several times over the past few years. Having been vacated in 1998, the building became the property of the Archdiocese of Cincinnati in 2007, and was donated to Lower Price Hill Community School (LPHCS) a few months later. LPHCS currently uses only one floor of the complex, so the organization teamed up with BLOC Ministries to redevelop the facility. BLOC will work with LPHCS’s adult education program in what will be known as the Center for Education and the Arts. Renovations for St. Michael’s church are scheduled to begin June 14.

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The Advisory Council on Historic Preservation (ACHP) and the White House Council on Environmental Quality (CEQ) have released “NEPA and NHPOA: A Handbook for Integrating NEPA and Section 106.” The handbook was created to inform individuals on the similar review processes of the National Historic Preservation Act (NHPA) and the National Environmental Policy Act (NEPA). The intended audience includes government agencies, project applicants, consultants and stakeholders. Section 106 requires federal agencies to study the effects of their actions on historic properties, such as historic buildings and districts, archaeological sites and cultural landscapes. NEPA requires federal agencies to review the results of their actions on the environment, including consideration of wildlife, air and water quality and historic and cultural resources. The handbook is available at www.achp.gov.

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Senate Bill 526, the Rural Heritage Conservation Extension Act of 2013, was introduced in March by Senate Finance Committee Chairman Max Baucus, D-Mont., and Ranking Member Orrin Hatch, R-Utah. The bill would amend the Internal Revenue Code of 1986 to make permanent the enhanced tax incentive for conservation easements scheduled to expire on Dec. 31. The senators stated they aim to permanently extend tax relief for ranchers, farmers and other landowners who donate land for conservation by allowing them to deduct up to 100 percent of their adjusted gross income (AGI) for donations of conservation easements. The bill will also allow taxpayers to deduct up to 50 percent of their AGI for qualified donations of conservation easements, with any unused deduction carried forward up to 15 years. This bill was originally introduced in 2006 to create an enhanced conservation easement tax deduction. However, the provision was extended in the Food, Conservation and Energy Act of 2008, the Taxpayer Relief, Unemployment Reauthorization and Job Creation Act of 2010 and the American Tax Relief Act of 2012.

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The New York Budget Agreement has been adopted as S.B. 2609D, which includes a rehabilitation tax credit enhancement. The state HTC program was extended through 2020. S.B. 2609D changes the current credit stipulations from $5 million per structure started after 2010 but before 2015, to a $5 million credit on projects started through 2019. The credit becomes refundable in 2015. The bill also provides a 20 percent state tax credit for commercial rehabilitations completed by 2020. After the 2020 tax year, the tax credit is reduced to 6 percent.

Journal Category:

Historic Tax Credits

Authors:

Novogradac

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