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Thursday, February 14, 2019

Legislation was introduced in both houses of the Tennessee Legislature to create a state historic tax credit (HTC). HB 1063 (and SB 1053) would create an HTC worth 10 percent of qualified rehabilitation expenditures for properties in Davidson or Williamson counties; 20 percent for structures in Hamilton, Knox or Shelby counties; and 30 percent for all other certified historic structures.

Friday, January 25, 2019

President Donald Trump today announced a short-term funding agreement to end the partial federal government shutdown after 35 days. The agreement will allow the U.S. Department of Housing and Urban Development to fund expired and expiring housing contracts and will allow the Community Development Financial Institutions (CDFI) Fund to resume movement toward the announcement of new markets tax credit allocations. The legislative measure will fund the government through Feb. 15 and Trump said border security negotiations will continue during the interim.

Thursday, January 24, 2019

Legislation was introduced in Hawaii today by five state senators to create a state historic tax credit worth 25 percent of qualified rehabilitation expenses, with a 30 percent credit for properties that include a minimum amount of affordable housing. SB 1394 would include the 30 percent credit if 20 percent of housing units are affordable rental units or 10 percent are affordable homeownership units. The credit would begin in 2020.

Thursday, January 24, 2019

Five Michigan state senators introduced legislation this week to reinstate a state historic tax credit. SB 54 would create a credit for 25 percent of qualified rehabilitation expenses. The credit would be effective Jan. 1. The nonrefundable credit could be carried forward up to 10 years. Michigan passed a state HTC in 1999, but it was zeroed out in 2011 and has not been funded since.

Thursday, January 17, 2019

Legislation was introduced in the Virginia legislature this week to permanently extend the state’s $5 million-per-taxpayer cap on its historic tax credit. The cap was in effect for 2017 and 2018, but expired Jan. 1. HB 2705 would extend that cap permanently. The Virginia credit is for 25 percent of eligible expenses.

Wednesday, January 16, 2019

Sens. John Hoeven, R-N.D., and Ron Wyden, D-Ore., today introduced the Move America Act of 2019, legislation that would expand tax-exempt private activity bonds and create a federal infrastructure tax credit to fund infrastructure projects through public-private partnerships. The legislation would allow states to issue tax-exempt bonds in partnership with private entities, with each state receiving a bond allocation based on population size.

Monday, January 7, 2019

Rep. Dwight Evans, D-Pa., introduced a bill to allow rehabilitation expenses on older public school buildings to qualify for the federal historic tax credit (HTC). H.R. 158 would remove the prior-use restriction from the HTC that makes it impossible for local governments to collaborate with private developers on school renovations.  Similar legislation was proposed in 2012.

Friday, December 14, 2018

The Internal Revenue Service (IRS) yesterday released proposed regulations on the base erosion and anti-abuse tax (BEAT). The BEAT is an alternative tax applicable to large corporations with significant multinational operations, and in some cases could limit the ability of tax credit investors to utilize their tax credits to reduce their BEAT liability.

Friday, December 7, 2018

The West Virginia Tax Department amended, effective Dec. 31, certain regulations for its state historic tax credit (HTC). The amendments include changes to regulations concerning the distribution of the credit for ownership groups, the transfer of the credit, the results of being in arrears in payment of other taxes and more.

Tuesday, December 4, 2018

The National Trust for Historic Preservation published a report, “State Historic Tax Credits: Maximizing Preservation, Community Revitalization, and Economic Impact,” to serve as a guide for state and local policy makers to understand the benefits of historic rehabilitation and key factors to structure an effective state historic tax credit (HTC) program.

Monday, November 26, 2018

The Internal Revenue Service issued a notice of proposed rulemaking today for a provision of last year’s tax reform legislation that limits the business interest expense deduction for certain taxpayers.

Monday, November 26, 2018

The Louisiana Department of Revenue adopted regulations to clarify eligible costs and expenses for state historic tax credit (HTC) expenses incurred during the rehabilitation of a historic structure in a downtown development district or cultural district. The regulations also provide definitions, the application procedure, an appeal process and a procedure for claiming or transferring the state HTC. The credit was for 25 percent of costs incurred before Jan.

Friday, November 9, 2018

The Treasury Department on Thursday released the 2018-2019 Priority Guidance Plan, which includes plans to provide guidance for the low-income housing tax credit (LIHTC), new markets tax credit (NMTC) and historic tax credit (HTC). The Priority Guidance Plan covers the period from July 1, 2018, through June 30, 2019.

Wednesday, November 7, 2018

Results from Tuesday’s elections–with Democrats taking control of the House of Representatives and Republicans maintaining control of the Senate–and their effect on the affordable housing, community development and renewable energy communities are the subject of a Notes from Novogradac blog post and a

Friday, October 26, 2018

The Minnesota Department of Revenue issued guidance that the state historic tax credit (HTC) is fully claimed in the year the qualifying renovated building is placed in service. The federal HTC is now taken at 4 percent per year for five years, but the Minnesota credit, equal to the federal credit, is taken in one year.

Tuesday, October 23, 2018

Legislators in New Jersey combined two bills that would create a state historic tax credit (HTC) to reimburse taxpayers for 25 percent of their renovations over a 10-year period. The legislation was unanimously reported out of the Wagering, Tourism and Historic Preservation Committee. There would be a $25,000 project cap for homeowners and no cap for the business HTC, although there would be annual program caps of $15 million in 2019, $25 million in 2020, $40 million in 2021 and $50 million annually beginning in 2022.

Friday, October 19, 2018

In a Notes from Novogradac blog post, Michael J. Novogradac, discusses how the opportunity zones guidance issued today by Treasury provides answers to many questions and includes information that will help guide investors, fund managers and others.

Friday, October 19, 2018

The National Park Service (NPS) certified 1,035 completed historic rehabilitation projects and documented $6.5 billion in rehabilitation investment during fiscal year 2017, according to its annual report in conjunction with Rutgers University on the economic impact of the federal historic tax credit (HTC). The NPS report says the federal HTC helped create 106,900 jobs and $6.2 billion of gross domestic product in FY 2017.

Friday, October 19, 2018

The Treasury Department today released the first tranche of proposed guidance for the opportunity zones (OZ) incentive, addressing gains invested in qualified opportunity funds. Treasury also released a related revenue ruling. Treasury will accept comments for 60 days.

Friday, October 12, 2018

Ninety-eight percent of House of Representatives and U.S. Senate candidates who responded to a survey say they support the federal historic tax credit (HTC), according to Preservation Action, a national nonprofit advocacy organization.