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State Tax Credit News Briefs - February 2017

Ohio Gov. John Kasich signed S.B. 235 Dec. 27, 2016. The bill authorizes bonus $25 million awards of the state historic tax credits (HTCs) to two catalytic properties that did not receive the awards originally. However, S.B. 235 also ends the state’s $25 million bonus-award program that was given in 2015 and 2016. Properties that applied for, but didn’t receive, the bonus credits in the 2016-2017 round were approved to receive them–specifically the May Co. building in Cleveland and the former Goodyear headquarters in Akron.

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A bill was pre-filed in the Virginia state Senate Jan. 9 that would limit the annual amount of the state HTC to $5 million per taxpayer, beginning in 2017. S.B. 1034 was introduced by state Sen. Janet D. Howell without cosponsors and was referred to the Committee on Finance. The Virginia HTC, which began in 1997, is worth 25 percent of qualified rehabilitation expenses. There is no transaction or statewide cap. S.B. 1034 is available at www.historictaxcredits.com.

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Missouri state Sen. Andrew Koenig introduced Missouri S.B. 226 Jan. 4. The bill would prohibit the transfer, sale or assignment of many state credits, including Missouri low-income housing tax credits (LIHTCs) and HTCs. At press time, Missouri S.B. 226 had not yet been assigned to a committee. The bill is available at www.taxcredithousing.com. 

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On Jan. 4, Virginia Del. Richard Sullivan introduced H.B. 1632 to establish a state renewable energy property credit for certain biomass equipment, geothermal equipment, hydroelectric generators, solar and wind equipment. Virginia H.B. 1632 includes a 35 percent credit for the installed cost of the property, with an annual taxpayer cap of 50 percent of the tax owed or $15,000, whichever is less. The bill calls for a $5 million statewide cap, with the credit effective in 2017 with a sunset in 2022.

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The Ohio Development Services Agency Dec. 20, 2016, awarded $22.8 million in Ohio Historic Preservation Tax Credits to 18 applicants for the rehabilitation of 33 historic properties. The projects are expected to bring a combined $225.6 million in private investment in 12 communities. Awards ranged from $99,031 to $5 million. 

Journal Category:

State Tax Credits

Authors:

Novogradac

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