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State Tax Credits News Briefs - August 2011

Connecticut expanded its historic preservation tax credit (HTC) program to include nonresidential use and a broader range of property types. H.B. 6651 changed the definition of "certified historic structure" to encompass historic industrial, commercial, institutional, former municipal, state or federal government property, cultural building, or residential property of more than four units, or mixed residential and nonresidential property. Only industrial and commercial were included previously, and purely nonresidential uses were not eligible for the program, under which $30 million in HTCs is available each year. Prior to the bill's enactment, Connecticut was the only state that limited in its tax credit program the types and uses of historic buildings, according to Connecticut Preservation Action. A copy of H.B. 6651 is available online at www.historictaxcredits.com.

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Louisiana Gov. Bobby Jindal signed bills to extend the state's residential and commercial historic tax credit programs. S.B. 63 extends the commercial HTC program, scheduled to expire in 2013, until 2016. In addition to extending the residential program's sunset until 2016, H.B. 348 included several provisions to give homeowners more access to the credit. Read the full text of the bills online at www.historictaxcredits.com.

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To stimulate development around New Jersey transit centers, the state Legislature passed modifications to the urban transit hub tax credit that would increase the credit amount and eliminate a requirement to set aside affordable housing units. S. 2972 would provide developers of residential property near mass transit centers a credit worth 35 percent of their expenditures, this is up from 20 percent. Under the measure, a city can determine whether a certain amount of the development's units, as much as 20 percent, must be reserved for low- and moderate-income households.

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The Oklahoma Legislature voted to create a task force to examine the state's economic incentive programs. Members of the Legislature and other government officials have been selected to serve on the 10-member Task Force for the Study of State Tax Credits and Economic Incentives, which is charged, among other tasks, with analyzing tax credit utilization and economic impact, and providing economic justification for the enactment of any state incentive program. The panel plans to review the state's insurance and historic tax credits before the end of the year. The state placed a two-year moratorium on several tax credits last year, including the HTC program, and is slated to resume payment of those benefits to developers next year.

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The State Historical Society of Iowa (SHSI) recognized four exemplary historic preservation projects developed in 2010 using the State Historic Preservation and Cultural & Entertainment District Tax Credit Program. The Henry Lischer House, in Davenport, received the Judith A. McClure Award for outstanding preservation of a residential property; the City National Bank and Glass Block Building, in Mason City, received the Adrian D. Anderson Award for outstanding small historic preservation project; the Baker-DeVotie-Hollingsworth Blocks, in Des Moines, received the Margaret Keyes Award for outstanding large historic preservation project; and the Julien Motor Inn, in Dubuque, received the William J. Wagner Award for best example of using the U.S. Secretary of the Interior's Standards for Rehabilitation of Historic Buildings.

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Massachusetts approved 16 projects to receive tax credits under the Economic Development Incentive Program (EDIP). According to the state, the combined projects will create more than 1,303 new jobs and retain 3,384 existing jobs, in addition to leveraging more than $962 million in private investment. Businesses receiving the EDIP tax credits include Affordable Interior Systems, in Leominster; BNY Mellon Investment Servicing, in Westborough; Stergis Aluminum Products Corp., in Attleboro; Mabbett & Associates, in Bedford; E Ink Corporation and Parexel International Corp., both in Billerica; Iredale Mineral Cosmetics Ltd., in Great Barrington; East Baking Company, in Holyoke; and Ocean Spray Cranberries, in Middleboro.

Journal Category:

State Tax Credits

Authors:

Novogradac

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