State Tax Credits News Briefs - October 2015

Thursday, October 1, 2015

The California Governor’s Office of Business and Economic Development (GO-Biz) released an updated frequently asked questions (FAQs) document about the California Competes Tax Credit (CCTC) Aug. 26. The update features a change in the answer to question No. 6 in the FAQ. The question is, “What is the maximum rate that will move an application to the Phase II evaluation process?” The new answer includes the cutoff ratios for the first period of the 2015-16 fiscal year (previously, the cutoff ratios for the three periods of the 2014-15 fiscal year and for the 2013-14 fiscal year were provided).

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The historic WK Robertson Building in downtown Springfield, Ky., opened Aug. 7 after a $1.6 million renovation. The former dry goods store, originally constructed in the 1800s, is now an affordable, mixed-use property. The $1.6 million renovation was completed with a $780,000 Community Development Block Grant (CDBG), a $394,000 HOME Investment Partnership Program grant and $421,000 in combined federal and state historic tax credits (HTCs). There are seven affordable apartments with commercial space at the street level. Of these seven units, three units will be available to those earning 60 percent of the area median income (AMI) and four units will be available to those earning 80 percent of the AMI.

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On Sept. 2, Citizens Bank announced it provided a $6.46 million construction loan to Lincoln Park Place LLC, an affordable rental housing development in Dartmouth, Mass. Lincoln Park Place LLC will be a single, three-story building providing 36 affordable units. Financing for the development also included $7 million in state and federal LIHTC equity, $3.5 million in state funding, $100,000 in town funding and a permanent loan through Fall River-based Bay Coast Bank. The building will be located at the former Lincoln Park Amusement Center.

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Developers Renewable Resources Inc. and E.A. Amaral signed an agreement Aug. 24 for the development of Potter Hill Mill in Westerly, R.I., and the Churchill Grammar School in Pawtucket, R.I., two state HTC properties. The Church Hill Grammar School will be developed with $500,000 in state HTCs. The two-and-a-half story Queen Anne style building was originally constructed in 1889. The building is being renovated to house office space. Development costs are expected to total $2 million. Potter Hill Mill will be developed with $750,000 in state HTCs. Potter Mill Hill is a three-story, red-granite building constructed in 1847. Plans for the renovation include transforming the former mill into a mixed-use building with professional offices, apartments and shops. Development costs are expected to total $3 million.

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On Aug. 1, the Indiana Department of Revenue updated Information Bulletin IT59. The revised bulletin removes the historic building rehabilitation tax credit, which is repealed effective Jan. 1, 2016. More information is available at www.in.gov.

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