State Tax Credits News Briefs - January 2015

Thursday, January 1, 2015

On Nov. 24, William Galvin, the Massachusetts secretary of state, announced $400,000 in historic preservation tax credits for the renovation and expansion of the Stockbridge Library in Stockbridge, Mass. The tax credits will be awarded by the Massachusetts Historical Commission. An application was also submitted for a $500,000 grant from the Massachusetts Cultural Facilities Fund. A decision from the state is expected in March 2015. Project costs are expected to total $3.2 million and the library’s multiyear capital campaign has raised $2 million. The project is expected to be completed in August 2015 and is anticipated to create nearly 100 jobs. The library is expected to reopen by October.

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On Nov. 10, the Hilltop Alliance, a collaboration of community-based organizations, announced $1.5 million in funding for community improvement and economic development programs in Allentown, Pa. The $1.5 million will be distributed in the form of $250,000 annual disbursements from PNC Bank, Dollar Bank and UPMC Health Plan from the Neighborhood Partnership Program (NPP), administered by Hilltop Alliance. The NPP permits corporate sponsors to acquire tax credits for money they spend on development. The annual disbursements will go toward supporting residential property owners, increasing adult and childhood education opportunities, expanding a fresh-food distribution program and creating a new business district program. The NPP program had applications requesting more than $40 million, but had only $18 million in tax credits to issue.

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Joe Kriesberg, president of the Massachusetts Association of Community Development Corporation, was awarded the Diane Sterner Award for Community Development Association Leadership Nov. 14 at the annual summit of the National Alliance of Community Economic Development Associations (NACEDA) in San Antonio. Kriesberg’s contributions include passage of Massachusetts’ Community Investment Tax Credit legislation, state funding for the small business program, the creation of the Mel King Institute of Community Building Leadership and service on the NACEDA board of directors.

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On Nov. 26, the Colorado Department of Revenue amended Colorado Code Regulation § 39-22-507.6, the New Colorado Investment Tax Credit. The amendment provides that a C corporation cannot carry forward unused credit to a tax year in which it elects under federal rules to be taxed as an S corporation. It also specifies that noncorporate lessors and S corporation lessors are eligible for the investment credit under certain circumstances; that it does not reduce the cost basis of the property; and that the enterprise zone investment tax credit and the new investment tax credit can be claimed for the same property. The amendment was effective Dec. 16, 2014.

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Omni Development Corporation announced Nov. 24 that it will receive $552,000 in historic tax credits (HTCs) from the Rhode Island Division of Taxation for the reconstruction of the 1890 House, an affordable housing apartment complex in downtown Providence, R.I. The tax credits were approved as part of a lottery by the General Assembly in 2013, with the value of credits rolling over from the original tax credit program that had been suspended in 2008 due to concerns about costs. The historic six-story brick building was built in 1905 as a Young Women’s Christian Association facility and is now senior housing. There are 52 units, and renovations will include work on the brick-and-terra-cotta exterior and replacement of the building’s windows and exterior doors.

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