Historic Tax Credits News Briefs - September 2015

Tuesday, September 1, 2015

On June 22, Texas Gov. Greg Abbot signed H.B. 3230 into law. The bill determines the eligible costs and expenses under the franchise tax credit for the rehabilitation of historic structures, stating that under that state historic tax credit (HTC), eligible costs and expenses entails qualified rehabilitations as defined by Section 47(c)(2) of the Internal Revenue Code. The exception is that the depreciation and tax-exempt use provisions of the section do not apply to costs and expenses incurred by an entity exempt from the franchise tax. H.B. 3230, available at www.historictaxcredits.com, is effective Jan. 1, 2016.

***

The National Trust for Historic Preservation and the Milwaukee Preservation Alliance released a new report, “The Federal Historic Tax Credit Wisconsin: Creating Jobs, Building Communities, Preserving Heritage,” July 15. The report highlights nine historic rehabilitation projects and notes that between 2001 and 2014, more than 50 communities throughout the state leveraged $621 million in private investment with state and federal HTCs. This funding went to renovating theaters, factories, breweries, schools and downtown retail stores. More than 3,662 construction jobs were created, as were 6,252 permanent jobs. The full report is available at www.historictaxcredits.com.

***

The Advisory Council on Historic Preservation (ACHP) announced July 21 the newly designated Preserve America Communities and Preserve America Stewards. The new Preserve America Communities are Sonoma, Calif.; Hartwell, Ga; Hightstown, N.J.; Bartlett, Tenn.; and Rockwall, Texas. The number of designated communities nationwide is now 900. The program recognizes a select group of communities that use their heritage resources in sustainable ways and share the benefits of historic preservation with residents and visitors. The new Preserve America Stewards include the Colebrookdale Railroad Preservation Trust in Pennsylvania, Historic Columbia in South Carolina and the Monmouth County Historical Association in New Jersey.

***

The Preservation Action board of directors announced Aug. 7 the selection of Rep. Russ Carnahan, D-Mo., and his wife, Debra, to lead the organization. Rep. Carnahan has held leadership positions including the chairmanship of the bipartisan Historic Preservation Caucus and the High Performance Building Caucus that focused on strategies that included use of green building technologies and policies for historic and new buildings. He was previously a state legislator and campaigned for the state HTC. Debra Carnahan is a former municipal judge and prosecutor. She served on the board of directors of the Landmarks historic preservation organization in St. Louis. Preservation Action is a national nonprofit advocacy group that focuses on strengthening historic preservation programs in Washington, D.C., and around the country.

***

On July 22, Dominium, a development and management company, announced the secured provisional approval to rehabilitate the historic Fort Snelling Upper Post in St. Paul, Minn. Dominium will use a combination of low-income housing tax credits (LIHTCs), federal and state HTCs, among other sources, to finance the rehabilitation of the $100 million development. A total of 190 affordable housing units will be provided on the 41-acre site. Construction is expected to begin in 2017.

***

U.S. Bank announced July 14 the $7 million investment in the transformation of a former U.S. post office in St. Paul, Miss., into a Hyatt Place Hotel. St. Paul Custom House, a 17-story building, will house five floors of hotel rooms totaling 149, as well as a 10,000-square foot lobby, a fitness center, a pool and meeting rooms. The hotel is part of the second phase of the St. Paul Custom House. Phase I included 202 market-rate apartments, parking and 64,000 square feet of self-storage. Funding for this phase included $15.5 million in HTC equity from U.S. Bank subsidiary U.S. Bancorp Community Development Corporation (USBCDC). All renovations are slated for completion by summer 2016.

Journal Category: