Recent News

Tuesday, November 23, 2021

Budget legislation signed by Gov. Roy Cooper extended the North Carolina state historic tax credit (HTC) and reinstated and extends the state’s mill rehabilitation credit. The budget legislation extends the sunset date for the state HTC from Jan. 1, 2024, to Jan. 1, 2030. It also adds a 5% bonus for qualified rehabilitation expenditures (QREs) of up to $20 million if the property was originally used for educational purposes. The mill rehabilitation credit is effective for taxable years beginning on or after Jan. 1, 2021, and allows a state credit of 40% for a taxpayer who is allowed a federal HTC on QREs of at least $10 million with respect to the certified rehabilitation of an eligible railroad station. 

Thursday, November 18, 2021

The Internal Revenue Service (IRS) has updated its table that compares the historic tax credit (HTC) to the low-income housing tax credit (LIHTC), including credit computation, basis adjustment, at-risk rules and 18 other areas. The table does not constitute legal authority and may not be relied upon as such.

Tuesday, November 16, 2021

Maine’s Office of Program Evaluation and Government Accountability (OPEGA) released Nov. 10 an Evaluation of the Maine Historic Rehabilitation Tax Credit, finding the state’s historic tax credit (HTC) compares favorably to best practices advised by the National Trust for Historic Preservation.

Wednesday, November 3, 2021

Democrats in the House of Representatives today released revised text for the Build Back Better Act (H.R. 5376), which includes an expansion of the low-income housing tax credit (LIHTC), the neighborhood homes tax credit (NHTC) and a $175 million tribal allocation for the new markets tax credit (NMTC) for 2022. The revised legislation retains $555 billion in tax and spending proposals for clean energy with minor changes. The LIHTC provisions include the extension of the 12.5% increase in 9% allocations that began in 2018 as part of the baseline during 2022-2024, adding annual 10% plus inflation increases for 2022-24 to those amounts, but reverting to the 2017 baseline as adjusted for inflation in 2025. It also would reduce the 50% test for affordable rental housing financed with private activity bonds (PABs) to 25% for five years (2022-26) and establish the 50% basis boost for extremely low-income housing, with the set-aside reduced from 10% to 8%, and a 30% basis boost for LIHTC properties in tribal areas.

Thursday, October 28, 2021

President Joe Biden today announced the Build Back Better framework to guide the drafting of reconciliation legislation. Bill text introduced today in the House Rules Committee details the $1.75 trillion spending proposal.

Of the $1.75 trillion, $150 billion would be set aside for housing and community development spending, including funding for rental assistance, preserving public housing and the national Housing Trust Fund (HTF). The framework also includes $555 billion for clean energy tax and spending proposals, of which $320 billion are for tax proposals, about $50 billion more than the House Ways and Means version of the reconciliation package.

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