Historic Tax Credits News Briefs - October 2017

Friday, October 6, 2017

The New York Department of Taxation and Finance issued an advisory opinion Aug. 11 regarding whether a taxpayer’s building is located within a qualifying census tract for the state historic tax credit (HTC). The taxpayer began renovation work on a building that will be listed in the National Register of Historic Places as a certified historic structure. Following project approval by the New York State Office of Parks, Recreation and Historic Preservation, the taxpayer’s lender/investor noted that the median family income for the specified census tract was higher than the median family income for New York state. As a result, the taxpayer’s lender/investor questioned the taxpayer’s eligibility for the credit for rehabilitation of historic properties and temporarily ceased renovations of the building until further guidance could be obtained. The advisory opinion issued Aug. 11 determined that the building is in a qualifying census tract for purposes of the tax credit for the rehabilitation of historic properties. 

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David Bernhardt, U.S. deputy secretary of the interior with the National Park Service (NPS), announced Aug. 17 the distribution of an additional $21 million in historic preservation grants. The grants were awarded to all U.S. states, the District of Columbia, the U.S. territories and partnering nations. In addition, $4.6 million in historic preservation grants was awarded to 169 tribal historic preservation offices. Funds were made available through the Historic Preservation Fund (HPF). 

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Developer Steve Foutch, of Foutch Brothers, announced Aug. 1 the Missouri Department of Economic Development’s approval of a combined $13 million in state and federal HTCs for the redevelopment of Kemper Arena in Kansas City. Foutch plans to convert Kemper Arena, listed on the National Register of Historic Places, into a two-floor amateur sports complex. The cost of redevelopment is $39 million. The first event in the new facility is scheduled for July 7-14, 2018.

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Rhode Island Gov. Gina Raimondo signed House Bill 5175 into law Aug. 3. The bill provides a $9.2 billion 2018 state budget bill that includes a two-year extension for the state HTC until June 30, 2023. The bill is available at www.historictaxcredits.com.

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Ohio Historic Preservation Tax Credit program policy updates went into effect July 1. Section 8.4 of the program policies was updated and now indicates that “the effective date for the tax credit certificate will be the date the certificate is signed by the director.” In addition, the policy change means that certificates can no longer be backdated based on the date the certification packet is received. Certificates will be signed by the director once all necessary information is received. The date of the signature will be the effective date of the certificate. The change applies to all applicants, including those already awarded a credit allocation, those who are applying in the current round and any future awardees.

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