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Historic Tax Credits News Briefs - May 2024

A bill in the Maine Legislature would double the transaction cap for the state historic tax credit (HTC) and reduce the state HTC claiming period by one year. LD 2016 would increase the transaction cap from $5 million to $10 million and reduce the claiming period from four to three years. Maine’s HTC is for 25% of qualified rehabilitation expenditures (QREs). The changes would be effective for tax years beginning on or after Jan. 1, 2024.

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A bill introduced in March in the Rhode Island House of Representatives would extend the state HTC sunset date to 2029. The state credit, which is for 20% of QREs with a 5% bonus if at least 25% of the total rentable space or the entire first floor is used as a trade or business, has a June 30, 2024, sunset date. H.B. 7920 would extend that until June 30, 2029, or until exhaustion of the maximum aggregate credits, whichever comes first.

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A bill to create a state HTC in Florida died in committee, the fourth straight year such legislation has failed to advance. S.B. 1166 would have created a 20% state HTC with an annual statewide cap of $25 million, an annual project cap of $200,000 and a multiyear project cap of $1 million.

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The Arkansas Supreme Court held March 7 that HTCs applied to two nonstate residents’ overall tax liability, not simply the in-state portion of their income. This reversed the ruling of a lower court, which held that the pair of Alaska residents owed $0 for 2015 on their Arkansas income tax bill. One justice said applying the calculation to their overall tax liability was consistent with Section 26-51-435 of the Arkansas tax code, which governs the taxation of nonresidents. The case covered the restoration of Lewis Supply Building in Helena, Arkansas.

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Lavi Bay Developments is set to turn the top three floors of the four-story Bay State Block Building in Sioux City, Iowa, into 27 apartments in an $11 million renovation. The homes will sit atop an active ground floor commercial space which already hosts the Rebos restaurant and Beer Can Alley bar. The endeavor received $2 million in HTCs and $750,00 in grayfield redevelopment tax credits.

Journal Category:

Historic Tax Credits

Authors:

Novogradac

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