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State Tax Credits News Briefs - November 2015

California Gov. Jerry Brown vetoed two bills Oct. 10 that would have affected the California state low-income housing tax credit (LIHTC). Assembly Bill 35 was enrolled Sept. 14. The bill would have increased the $70 million annual state LIHTC allocation cap by $100 million beginning in calendar year 2016 and cycling through 2021. Senate Bill 377 was enrolled Sept. 16. The bill would have allowed a developer who is awarded state LIHTCs to sell the credits to an investor without admitting the investor to the ownership partnership or certificating the credit. The bill also eliminated any sunset provision for bifurcation and would extend these provisions indefinitely. Both bills are available at www.taxcredithousing.com.

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On Sept. 18, the North Carolina General Assembly passed a $21.7 billion state budget reinstating the state historical tax credit (HTC) program that expired at the end of 2014. Previously, the historic tax credit allowed a 20 percent rebate on the construction expenses of a historic building, and up to 30 percent if it was a historic mill or vacant agriculture warehouse. Now the program offers a 15 percent tax credit for rehabilitating an income-producing historic structure costing up to $10 million. There is a 10 percent tax credit for income-producing projects costing between $10 million and $20 million. The bill also offers a 5 percent bonus to developers if the property is located in designated communities, or was considered a “targeted investment” site such as an old factory or mill that has been vacated. The program has a new sunset date of Jan. 1, 2021.

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Vermont Gov. Peter Shumlin announced Sept. 9 the allocation of $2.37 million in 2015 Downtown and Village Center tax credits for construction or rehabilitation of 27 developments. Noelle MacKay, commissioner of the Department of Housing and Community Development, said in a press release that expanded outreach efforts led to a 200 percent increase in applications during the past two years. Allocations ranged from $2,925 to $336,407. The list of winners is available at accd.vermont.gov.

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The Kentucky Cabinet for Economic Development issued an updated fact sheet Oct. 2 on the Kentucky Business Investment (KBI) program. The fact sheet lists the enhanced incentive counties for 2015-2016. The enhanced incentive counties decertified June 30 must have final approval by June 30, 2018. The enhanced incentive counties decertified June 30, 2014, must have final approval by June 30, 2017. The enhanced incentive counties decertified June 30, 2013, must have final approval by June 30, 2016.

Journal Category:

State Tax Credits

Authors:

Novogradac

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