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Tuesday, April 13, 2021

Legislation to eliminate the sunset date and transaction cap for the West Virginia historic tax credit (HTC) has passed both houses of the state Legislature and awaits the signature of Gov. Jim Justice. S.B. 344 would remove the Dec. 31, 2022 expiration date, as well as all annual caps. Justice can sign or veto the bill. If he does neither, the bill becomes law.

Tuesday, April 13, 2021

Legislation signed to law in Kentucky creates a specific set-aside in the state historic tax credit (HTC) incentive to spur redevelopment in the west end of Louisville. H.B. 321 provides tax incentives for development in the area and creates a set-side before Dec. 31 for a major HTC development that meets certain qualifications–qualifications that specifically apply to the Seelbach Hotel. Refundable, transferrable HTCs can be claimed on the first $30 million of qualified rehabilitation expenditures on the project.

Tuesday, April 13, 2021

State budget legislation signed by Virginia Gov. Ralph Northam this month established an annual taxpayer cap and a sunset date for the state historic tax credit (HTC). Virginia H.B. 1800 allows taxpayers to claim no more than $5 million per year in state HTCs and establishes a June 30, 2025, sunset date for all tax credits. Virginia previously had no sunset date on its HTC.

Monday, April 12, 2021

The Louisiana Department of Revenue issued guidance last week explaining changes to the state’s historic tax credit (HTC) as a result of H.B. 4, signed into law in July 2020. Louisiana Revenue Information Bulletin No. 21-010 formalizes the new $125 million annual statewide cap starting Jan. 1, 2021, (previously, there was no annual cap) and clarifies that unused credits can be rolled over to subsequent years. The guidance also establishes that the Department of Culture, Recreation and Tourism is required to adopt rules for how to reserve credits.

Tuesday, April 6, 2021

The Mississippi Legislature approved legislation reinstating the refundability of the state historic tax credit (HTC), sending the bill to the desk of Gov. Tate Reeves. H.B. 1296 would allow a rebate of up to 75% of the state HTC if the amount of the credit exceeds the taxpayer’s tax liability.

Tuesday, April 6, 2021

Legislation introduced in the Louisiana House of Representatives would repeal the state low-income housing tax credit (LIHTC) and reduce the state new markets jobs act credit and historic tax credit (HTC) by 50% each. H.B. 454 includes the repeal of 12 tax credits and the reduction by 50% of 45 other credits.

Thursday, April 1, 2021

Sweeping tax legislation introduced in the Montana Senate would terminate the state’s historic tax credit (HTC). S.B. 399 would decrease the number of income tax brackets, eliminate the state’s capital gains tax and make several other changes, including the elimination of 18 tax credits. One of those targeted for elimination is the Montana Historic Rehabilitation Income Tax Credit, which is worth 25% of the federal tax credit claimed.

Thursday, April 1, 2021

A bipartisan group of House of Representatives members today introduced the Historic Tax Credit Growth and Opportunity (HTC-GO) Act of 2021, a bill that includes a temporary increase in the federal historic tax credit (HTC) and a permanent increase in the HTC percentage for small projects. The legislation would increase the HTC percentage from 20% to 30% for 2020-2024, then begin a gradual decline back to 20% by 2027.

Tuesday, March 23, 2021

Legislation introduced in the Illinois House of Representatives would triple the annual cap for the state historic tax credit (HTC). H.B. 3974 would increase the annual cap from $15 million to $45 million. The bill makes no other changes. Other legislation in Illinois would create a Lincoln-Douglas state HTC for seven cities and extend the River Edge State HTC five years.

Tuesday, March 23, 2021

A bill introduced in the Nebraska Legislature would eliminate the sunset date for the Nebraska Job Creation and Mainstreet Revitalization Act, part of the state’s historic tax credit (HTC) incentive. L.B. 194 also adds a provision to increase the credit percentage from 20% to 25% for counties with a metropolitan or primary city and to 30% for other counties and increases the project cap to $2 million.

Monday, March 22, 2021

A bill introduced in the Maine Legislature would extend the state historic tax credit (HTC) for 15 years. L.D. 240 includes a provision that would change the sunset date for the Maine HTC from Dec. 31, 2025, to Dec. 31, 2040. The Maine HTC is a 25% credit if the property qualifies for the federal 20% credit, with a transaction cap of $5 million per year.

Monday, March 15, 2021

The Internal Revenue Service’s (IRS’s) Office of Chief Counsel last week issued a memorandum clarifying that the installation of accessibility ramps on historic buildings to comply with the Americans With Disabilities Act won’t jeopardize the tax deductibility of contributions to preserve the building. Easements to facilitate the preservation of historic buildings can qualify for tax breaks under IRS Section 170(h) and IRS Memo AM 2021-001 says ramps for people with disabilities doesn’t interfere with the donor’s right to take a tax deduction on the easement. The memo is not binding in court, but indicates the position the IRS will take in audits.

Tuesday, March 9, 2021

A bill in the West Virginia state Senate would eliminate the sunset date and transaction cap for the state historic tax credit (HTC). S.B. 344 would remove the Dec. 31, 2022, expiration date for the state’s 25% HTC, as well as the $10 million cap for a single project, the $30 million annual statewide cap and the $5 million set-aside for small projects.

Tuesday, March 9, 2021

The federal historic tax credit (HTC) created more than $6.5 billion in private investment in historic preservation and community revitalization in fiscal year 2020, according to the National Park Services’ annual report. Federal Tax Incentives for Rehabilitating Historic Buildings: Annual Report for Fiscal Year 2020 detailed 939 certifications of completed work (Part 3), with 5,730 rehabilitated housing units and 10,894 new housing units. The NPS reports that there has been more than $109 billion investment in rehabilitation since the HTC incentive began in 1977, featuring 46,372 certified projects. According to the report, Virginia (108) and Missouri (92) had the most Part 3 approvals in 2020.

Thursday, March 4, 2021

Rep. Earl Blumenauer, D-Oregon, this week reintroduced legislation to reinstate the non-historic historic rehabilitation tax credit (HTC) as a 15% credit. The Revitalizing Economies, Housing and Businesses (REHAB) Act of 2021 (H.R. 1483) would apply to rehabilitation expenses for buildings that are more than 50 years old, including adjacent properties on the same block, provided the property is within a half-mile of an existing or planned public transportation center. A bonus credit of 25% would be available for expenses related to affordable housing and public infrastructure.

Tuesday, March 2, 2021

The Arkansas state historic tax credit (HTC) would increase its annual allocation and be extended by 10 years under legislation introduced in the state House of Representatives. H.B. 1555 would increase the annual cap on the state HTC from $4 million to $10 million and would extend the sunset date from Dec. 31, 2027, to Dec. 31, 2037.

Tuesday, March 2, 2021

A bill in the Rhode Island General Assembly would eliminate the sunset provision for the state historic tax credit (HTC). The credit is currently set to expire when the maximum aggregate credits is exhausted or June 30, 2021, whichever comes first. H.B. 5458 would extend the credit indefinitely.

Tuesday, March 2, 2021

A bill in the Illinois state Senate would create a Lincoln-Douglas state historic tax credit (HTC), applicable to historic properties in seven cities. S.B. 1880 would create a 25% credit for qualified expenditures, effective immediately for the municipalities of Ottawa, Freeport, Jonesboro, Charleston, Galesburg, Quincy and Alton. The existing Illinois River Edge HTC applies to properties in five cities within the River Edge Redevelopment Zones.

Wednesday, February 17, 2021

The Georgia Department of Revenue announced a proposed rule and a hearing to address changes in the department that oversees the state historic tax credit (HTC) incentive. Georgia S.B. 473 changed the certifying agency for the credit from the Georgia Department of Natural Resources to the Georgia Department of Community Affairs. The remote hearing will be March 23 at 10 a.m. ET.

Tuesday, February 16, 2021

The Illinois Rivers Edge Tax Credit, the state historic tax credit (HTC), would be extended five years under a bill introduced in the state Legislature. S.B. 157 would extend the sunset date from Jan. 1, 2022 to 2027. The credit is for 25% of qualified rehabilitation expenditures in areas that are located within the River Edge Redevelopment Zone and meet four other qualifications.