California Passes State Historic Tax Credit, Bill Awaits Governor’s Signature

The California Legislature passed S.B. 451, which would create a State Historic Tax Credit (HTC) for 20 or 25 percent of qualified rehabilitation expenses (QREs) that meet specific criteria and would be in effect from 2021 through 2026. The credit would have a statewide cap of $50 million per calendar year, with $2 million set aside for residences and $8 million set aside for developments with QREs of less than $1 million. The bill would require the Legislature to provide for the expenditure each year in appropriations and would require an annual review of the effectiveness of the credits. Governor Newsom has until Oct. 13 to sign the bill. If he doesn’t sign or veto the legislation, it becomes law.