Properties financed with federal historic tax credit (HTC) equity that received certifications of completed work from the National Park Service (NPS) accounted for estimated rehabilitation investments of $7.16 billion in 2021, according to the annual report, “Federal Tax Incentives for Rehabilitating Historic Buildings” released in March. That is the most recorded in a single year in the history of the incentive. The NPS reported 1,063 Part 3 certifications of completed work and also reported that 1,098 properties received Part 2 certifications, which is a preliminary certification of rehabilitation. Completed HTC developments were responsible for creating 11,297 housing units in 2021, 7,220 for low- and moderate-income residents.

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West Virginia Gov. Jim Justice signed legislation March 30 that eliminates the transaction cap and the annual statewide cap for the state HTC. H.B. 4568 removes the $10 million transaction cap and $30 million annual statewide cap. The legislation also allows phased rehabilitations for any project completed after July 1, 2022. The bill’s other provisions are effective June 9.

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A bill introduced in March in the Arizona House of Representatives would create a state HTC worth 20% of qualified rehabilitation expenditures (QREs). H.B. 2760 would create the credit–which could be issued to properties that meet the standards of the federal HTC–with the requirement that 60% of the state HTCs in the first round of each year be issued to cities with fewer than 150,000 residents. There would be an annual statewide cap of $15 million, with an enactment date of Jan. 1, 2023, and a sunset date of Dec. 31, 2032.

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The Michigan Strategic Fund adopted March 17 procedures for taxpayers to request certain certifications to receive the state HTC. Administrative rules R206.201 to R206.249 cover receiving certifications for historic significance, a rehabilitation plan or the completed rehabilitation of a historic resource. Michigan’s HTC is for 25% of QREs with a $5 million statewide cap. It was reinstated at the end of 2020.

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Legislation to increase project caps for the Kentucky HTC passed the Kentucky legislature and was delivered to the governor April 14. H.B. 659 would increase the taxpayer cap from $400,000 to $10 million for nonresidential property and from $60,000 to $120,000 for residential property. The legislation would also allow the state HTC to be transferred to financial institutions that file income taxes instead of the bank franchise tax.

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Legislation that would have created a Florida state HTC was withdrawn from consideration March 14. H.B. 247 would have created a state HTC worth 25% of QREs for properties eligible to receive the federal HTC. The bill would also have added a 10% bonus credit for properties in areas designated as part of the Florida Main Street Program. A similar bill, S.B. 1310, failed to advance from committee.

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Legislation introduced in March in the Missouri House of Representatives would modify the state HTC to increase the tax credit percentage for certain properties. H.B. 2815 would provide an HTC of 50% of QREs, with a project cap of $500,000, for the rehabilitation of an essential community or heritage facility and a 35% credit for property in counties with population of less than 1 million residents (except for counties between 700,000 and 800,000 residents). The Missouri HTC is otherwise for 25% of QREs. The legislation would reserve up to $5 million for the essential community or heritage facility for the fiscal year July 1, 2022-June 30, 2023, with an increase of $1 million annually up to a maximum of $10 million. The bill would also make changes to non-income-producing single-family residential property provisions for the HTC.

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The NPS announced March 28 that much of its staff had adopted a hybrid working model that blends in-office and telework. An initiative undertaken as a byproduct of the COVID-19 pandemic, the Technical Preservation Services office will send a “notice of decision” to applicants electronically and send an official, signed decision in the weeks following. Connecticut, Illinois, Minnesota, Utah and Washington’s state historic preservation offices continue to operate on an electronic submission basis.

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Construction began in March on the redevelopment of the Butler Brothers building in St. Louis’ Downtown West neighborhood. The $130 million, 735,000-square-foot property built in 1906 spans a full city block. The refreshed location will feature 384 apartments, offices and restaurant/bar space downstairs. Development Services Group will use state and federal HTCs to help finance the endeavor.

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Woodlands Development Group financially closed in March on a $16 million renovation of the Tygart Hotel in Clarksburg, West Virginia. The six-story, 42,000-square foot property will become a 56-room boutique hotel with meeting rooms, lobby restaurant and a bar that is also expected to add 55 jobs to the local market. Davis Trust Company, Freedom Bank and Pendleton Community Bank–all West Virginia-based financiers–invested in the HTCs while U.S. Bank delivered new markets tax credit equity.

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Developer Sherman Associates started a top-to-bottom renovation of its corporate home in February in Minneapolis. The $30 million renovation is funded through $6.2 million in state and federal HTC equity. The refreshed J.I. Case building, which is near U.S. Bank Stadium, the home of the Minnesota Vikings, will include office space as well as commercial tenants.