Bills in the Arkansas Legislature would increase the statewide cap and credit percentage for the state historic tax credit (HTC) while extending the incentive for five years. S.B. 460 would increase the annual statewide HTC cap from $8 million to $15 million beginning in fiscal year 2024. S.B. 461 would change the tax credit percentage from 25% to 40% for properties in cities with fewer than 10,000 residents, 35% for cities with populations of 10,000 to 50,000 and 30% for properties in cities with more than 50,000 residents. S.B. 462 would extend the state HTC sunset date from June 30, 2025, to June 30, 2030. The bills were all sponsored by Sen. Jonathan Dismang and Rep. Les Eaves.
A bill introduced in the Pennsylvania Legislature would create a homeowner historic tax credit (HTC) worth 20% of qualified rehabilitation expenditures (QREs). H.B. 724 would create the credit for historic properties in census tracts that either have family median incomes at or below 100% of the state median family income or that are in opportunity zones (OZs). There would be a project cap of $50,000 and an annual statewide cap of $3 million. Applications would be accepted each June and the program would sunset Feb. 1, 2032. Pennsylvania currently has a state HTC that does not apply to residential properties.
The annual cap for the Kentucky state historic tax credit (HTC) will increase from $5 million to $100 million effective April 30, thanks to legislation passed in 2021. H.B. 249 requires that $25 million of the expanded cap go to owner-occupied residential housing, while the rest goes to non-residential property. Additionally, H.B. 659, passed this year, increases the project cap for commercial projects from $400,000 to $10 million and the owner-occupied project cap from $60,000 to $120,000.
A bill in the Connecticut Legislature would make the state’s historic tax credit (HTC) refundable beginning in 2024. H.B. 6920 would allow the HTC to be carried forward up to five years for taxpayers issued a rehabilitation voucher issued before Jan. 1, 2024, but subsequent credits would be refundable. The Connecticut HTC is for 25% of qualified rehabilitation expenditures (QREs) for residential properties with five or more units, mixed residential or nonresidential use if it is consistent with the historic character of the property or district.
A bill introduced in the Pennsylvania House of Representatives would create a historic rehabilitation tax credit (HTC) for factory or mill buildings. H.B. 653 would create a 25% credit for qualified rehabilitation expenditures (QREs) on buildings built before 1973 that have been or will be used primarily for manufacturing, processing, wholesale trade or other commercial purposes and have been at least 75% vacant for the previous 24 months. QREs would be required to be a minimum of 20% of the appraised market value of the building and the buildings would be certified through a process beginning with a request from a municipality. The legislation also provides tax credits for higher annual wages paid to employees in the rehabilitated buildings and interest on loans for the substantial rehabilitation.
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