Historic Rehabilitation Category Archives

Michigan Extends HTC Through 2030 

Gov. Gretchen Whitmer (D) of Michigan signed legislation extending the state’s Historic Tax Credit (HTC) through 2030. 

S.B. 54 allows a qualified taxpayer with a certificate of completed rehabilitation issued after December 31, 2020 and before January 1, 2031, to credit against the income tax or Corporate Income Tax (CIT) 25 percent of the qualified expenditures that met eligibility criteria for the historic rehabilitation credit under the Internal Revenue Code for the rehabilitation of a historic resource, according to a summary of the bill 

IRS Extends Grandfathering for the One-Year Historic Tax Credit

The Tax Cut and Jobs Act of 2017 made significant changes to the Historic Tax Credit, turning it from a one-year credit with a five-year compliance period to a five-year credit taken ratably. Transition rules were set in place that permitted some projects currently underway to be grandfathered in under the former one-year credit. That grandfathering rule had an end date in June 2020. Now, in light of the COVID-19 pandemic, the IRS has provided an extension of the grandfathering rule, into 2021.

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RBCCM’s Tax Credit Equity Group Closes $65.6 Million California Fund

RBC Capital Markets Tax Credit Equity Group recently announced the closing of RBC Tax Credit Equity California Fund–5 with total tax credit equity of $65,676,225. The Fund consists of federal LIHTC equity and federal Historic Tax Credit equity. The Fund is comprised of investments in six LIHTC eligible multi-family apartment communities located throughout California, representing 707 affordable homes.

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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.

Rep. Brady Announces Draft Tax Measure; Text to be Circulated Soon

House Ways & Means Chairman Kevin Brady (R-TX) has announced he has completed a draft tax measure to fix the “retail glitch” in the new tax law and address many tax extenders.  The draft measure is expected to be circulated in the next few days. It is unclear at time of press whether any affordable housing, historic rehabilitation or New Markets Tax Credit provisions are included in Chairman Brady’s draft, which is said to include between 70-80 alterations to last year’s the tax law, HR 1.  The measure is a potential vehicle for several NH&RA priorities including fixing the 4 percent LIHTC rate, basis adjustment provisions for the historic credit and an extension of the NMTC, which is set to sunset next year.  We will update this story as it develops.