All News

Wednesday, March 22, 2023

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.

Wednesday, March 22, 2023

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.

Wednesday, March 22, 2023

Legislation introduced in the Rhode Island House of Representatives would exempt certain properties from the requirement to pay prevailing wages to receive the Rebuild Rhode Island Tax Credit. H.B. 6186 would allow taxpayers that applied for the tax credit before Jan. 1, 2023, an exemption from the prevailing wage requirement for construction projects that have more than $10 million in expenditures. The Rebuild Rhode Island tax credit goes to manufacturing projects, historic rehabilitation properties and mixed-use developments in opportunity zones (OZs) that support affordable housing.

Monday, March 20, 2023

The Indiana Department of Revenue issued guidance this month to clarify how to carry forward the state’s expired historic tax credit (HTC). Indiana Information Bulletin IT87 states that credits for expenditures made before June 30, 2016, or in a taxable year beginning before Dec. 31, 2015, are eligible for carryforward. Those credits can be carried forward up to 15 taxable years following the taxable year in which the taxpayer is first entitled to the credit. The Indiana state HTC expired in 2019 and the state has only a residential HTC.

Friday, March 10, 2023

Mississippi Gov. Tate Reeves this week signed into law a bill that extends the period of time in which a taxpayer can claim a 75% rebate on the amount of the state historic tax credit (HTC). H.B. 390 extends the period to any time after the certification of the rebate, a change from the previous regulation that required an election be made in the year in which the rebate is certified. The change is immediately effective.

Wednesday, March 8, 2023

The National Park Service (NPS) issued more than 850 Part 3 certifications of completed work for the federal historic tax credit (HTC) in 2022, accounting for $6.56 billion in rehabilitation costs, according to an annual report. Federal Tax Incentives for Rehabilitating Historic Buildings: Annual Report for Fiscal Year 2022 also reported that 44% of completed federal HTC projects in 2022 had less than $1 million in qualified rehabilitation expenses (QREs) and that 17% of all projects had QREs of less than $250,000. There were 1,463 Part 1 certifications of significance and 1,187 Part 2 preliminary certifications of rehabilitation (Part 2) issued in 2022. During 2022, 5,533 housing units were rehabilitated and 9,036 new housing units were financed by the federal HTC. Of those, 6,789 were low- and moderate-income units. The 2022 figures come on the heels of a record-breaking 2021, when there was $7.16 billion in rehabilitation costs.

Wednesday, March 8, 2023

Utah legislation that would have expanded the state historic tax credit (HTC) to cover commercial properties has failed to advance in the state Legislature. H.B. 424 would have allowed the HTC to be applied beyond the current limitation of residential properties and would have allowed the transfer of the state HTC among taxpayers.

Thursday, March 2, 2023

A bipartisan group of four senators today introduced the Historic Tax Credit Growth and Opportunity (HTC-GO) Act of 2023. The legislation would create a 30% HTC for projects that cost less than $3.75 million, while retaining the 20% credit for other projects. The bill eliminates the basis-adjustment requirement, which increases eligibility and brings parity with other tax credit incentive, and decreases the substantial rehabilitation test threshold to 50% from 100% of expenses. The bill is sponsored by Sens. Ben Cardin, D-Maryland; Bill Cassidy, R-Louisiana; Maria Cantwell, D-Washington; and Susan Collins, R-Maine. The 2023 legislation follows the introduction of similar bills in 2021 and 2019.  In 2019, there were 66 cosponsors in the House and 12 in the Senate. For the 2021 bill, there were 104 cosponsors in the House and 15 in the Senate. A similar bill is expected to be introduced in the House.

Wednesday, March 1, 2023

Legislation in the Maryland Senate would increase annual caps for the state historic tax credit (HTC) set-asides and also increase bonus credits for rehabilitations done in opportunity zones (OZs). Under S.B. 952, the credit for commercial rehabilitation of high-performance buildings, affordable housing or a Level 1 OZ project would increase from 5% to 10% and properties in a Level 2 OZ would see an increase from 7.5% to 12.5%. Those descriptions apply to rehabilitations by qualified OZ businesses, with Level 2 meeting additional requirements. The statewide annual cap would increase to $10.5 million annual for Level 1 OZ projects and to $11 million annually for Level 2 OZ projects. Both totals are double the current level and the project caps for noncommercial rehabilitation would also double. Under the bill, the governor would be required to include an appropriation to the trust account of at least $20 million for fiscal years 2025 through 2031.

Thursday, February 16, 2023

Legislation in the Arizona legislature would create a state historic tax credit (HTC). H.B. 2791 would create a credit worth 20% of qualified rehabilitation expenditures (QREs) for a certified historic structure, with the credit worth 25% of QREs if the property was affordable housing.

Thursday, February 16, 2023

Legislation introduced in the Utah House of Representatives would expand the state historic tax credit (HTC) to cover commercial properties. H.B. 424 would allow the credit–which currently is available only to residential properties–to be used for commercial buildings.

Thursday, February 9, 2023

A bill in the Minnesota Legislature would reinstate the state historic tax credit (HTC) and allow taxpayers to claim the entire amount in the year a project is placed in service. S.F. 1340 would bring back the credit that expired June 30, 2021. The credit would be for up to 100% of the federal HTC and the credit–or a grant that could be issued in lieu of a credit for 90% of its value–could be claimed in the year in which the project was placed in service. The credit would be applicable for HTC certificates submitted after June 30, 2023.

Thursday, February 9, 2023

Legislation in the New York Senate would extend the state historic tax credit (HTC) by 10 years and add an exception to the maximum allocation amount for “white elephant” projects that have at least $50 million in qualified rehabilitation expenditures (QREs) and have been vacant for at least 10 of the past 15 years. Under S.B. 4174, the HTC sunset date would change the end of 2025 to the end of 2035. The bill would also allow an increase in the per-project cap for white elephant projects from $5 million to $15 million and add multiple ways that subsequent phases of such projects would be eligible for the HTC. The legislation would allow white elephant projects that are also qualified low-income housing projects to be eligible for the HTC whether or not they are located in an eligible census tract.

Thursday, February 2, 2023

Technical and administrative guidance released today by the Organization for Economic Co-Operation and Development (OECD)/Group of Twenty (G20) provides clarification on the treatment of key community development tax incentives concerning a global minimum tax (GMT) on multinational corporations. More than 140 nations agreed with the guidance, which will form a common approach for countries to implement the rules concerning the GMT.

Wednesday, January 25, 2023

Legislation to introduce a state historic tax credit (HTC) was read twice this week in the Arizona state Legislature. H.B. 2258 would authorize a combined annual aggregate cap of $15 million in tax credits from Dec. 31, 2023, through Dec. 31, 2033. The amount of the credit is 20% of the qualified rehabilitation expenditures (QREs). The credit can be carried forward 10 years.

Wednesday, January 25, 2023

Legislation introduced in the Indiana state Senate would create a state historic tax credit (HTC). S.B. 478 would create a state credit worth 30% of qualified rehabilitation expenditures (QREs) for nonprofit properties that don’t produce income. All other historic rehabilitations would receive a 25% state HTC. The credit could be carried forward up to 10 years. There would be a $10 million annual cap and the credit would expire Jan. 1, 2033. Indiana currently has a residential HTC only.

Wednesday, January 25, 2023

A bill introduced Tuesday in the New Hampshire Legislature would establish a historic tax credit (HTC) for housing. S.B. 231 would create a five-year credit capped at $5 million annually in contributions for historical structures being used as or converted to multifamily apartments. The tax credit would be applicable to up to 65% of the contribution made by an investor to the state authority, which would pass the investment to a specific project. If passed, the legislation would take effect July 1.

Wednesday, January 25, 2023

A bill introduced in the Nebraska Legislature would expand the state historic tax credit (HTC) percentage, while also decreasing the statewide cap beginning in 2024. L.B. 756 would increase the state HTC percentage from 20% to 25% for properties in counties with cities with a population 100,000 or more, while those in other counties would be worth 30% of eligible expenditures. The maximum HTC amount per property would be $2 million and beginning Jan. 1, 2024, the statewide annual cap would drop from $15 million to $12 million. The legislation would also add a provision requiring properties to be at-grade or aboveground to be eligible for the HTC.

Wednesday, January 25, 2023

A bill in the Illinois state Senate would extend the sunset date for the state historic tax credit (HTC) while increasing the annual cap. S.B. 119 would provide a sunset date of Dec. 31, 2028, for the state HTC, five years later than the current sunset date. The legislation would also expand the annual state cap of $15 million to $75 million, beginning Jan. 1, 2024.

Tuesday, January 24, 2023

Legislation introduced in the Florida Senate would create a state historic tax credit (HTC). S.B. 288, the Main Street Historic Tourism and Revitalization Act, would create a state HTC worth 20% of qualified rehabilitation expenditures (QREs), with an additional 10% credit for properties in an Accredited Main Street Program. To be eligible, properties would have received federal HTCs. The HTC would take effect Jan. 1, 2024. Similar legislation was introduced in Florida in 2021.