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State Tax Credit News Briefs – September 2019

The Iowa Economic Development Authority (IEDA) announced $29.2 million in historic tax credit (HTC) awards July 8. Approximately $30 million was available during the registration round and IEDA received 19 applications for $51 million in credits. Projects were scored based on readiness, financing and local support and participation. Eight projects were registered with the IEDA to receive the credits.

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The Arkansas Department of Finance and Administration released a legal opinion in July clarifying that a taxpayer may claim the state HTC against the state income tax or the state insurance premium tax, but not both. In the opinion, a taxpayer asked whether the language of the state tax code allowed the state HTC to be taken against both taxes, whether one had priority and whether an eligible property could be both income producing and non-income producing. The opinion said that there is only one deduction per credit, which can be applied to either tax, but not both. The opinion also clarified that an eligible property cannot be both income producing and non-income producing.

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The Pennsylvania Department of Community and Economic Development and the Pennsylvania Historical & Museum Commission announced the allocation of $3 million in state HTCs to 24 properties in mid-June. The 24 properties will leverage an estimated $113 million in construction. Forty-two applicants for the HTCs sought nearly $15 million in tax credits. 

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The Indiana Department of Revenue issued an information bulletin in July clarifying that no expenditures made after June 30, 2016, nor expenditures in a taxable year beginning after Dec. 31, 2015, are eligible for certification under the state HTC. However, HTCs granted previously are eligible for carryforward. Information Bulletin #87 addresses Indiana’s state HTC, which is for 20 percent of qualified rehabilitation expenditures, with an annual statewide cap of $450,000.

Journal Category:

State Tax Credits

Authors:

Novogradac

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