Historic Rehabilitation Tax Credit Tag Archives

House Tax Reform Bill Eliminates HTC, NMTC; Eliminates Private Activity Bonds

The House Ways and Means Committee has released the full text of its Tax Cuts and Jobs Act. The Committee plans to begin markup on the proposed legislation on November 6, with plans for a House floor vote sometime in mid-November. Several changes within the code would drastically change the landscape of affordable housing and community development.

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NPS Publishes 2016 Historic Tax Credit Economic Impact Report

The National Park Services has published its “Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2016.”  The report, which is produced by Rutgers University with assistance from the National Trust Community Investment Corporation—provides a quantitative analysis of the success of the federal historic tax credit (HTC).

Key findings show that fiscal year 2016 was a record-setting year for historic tax credit use. Activity increased by 32 percent over the last year—the greatest year-over-year increase in the program’s history. A banner year brings the cumulative totals of the credit’s economic impact since 1986 to 42,293 buildings rehabilitated, almost 2.5 million jobs created, and $29.8 billion in federal taxes generated. This last number is particularly significant because it confirms the HTC is a revenue generator for the U.S. Treasury (tax credits issued over this same period total $25.2 billion).

The release of this NPS report is incredibly timely. With pressure mounting for the Republican-controlled Congress to deliver a legislative victory ahead of the 2018 mid-term election season, comprehensive tax reform is now Washington’s top domestic policy objective. Republican leadership is determined to send a tax reform plan to the President before the end of the year. Without frequent and sustained advocacy from constituents over the next several weeks, the HTC is likely to join the many other business tax credits that simply do not make it back into a reformed tax code.

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West Virginia Legislature Approves Increase for State Historic Tax Credit Program

The West Virginia House of Delegates and State Senate approved  House Bill 203 which expands the state’s historic tax credit program from 10% to 25% of qualified rehabilitation cost for expenditures made after December 31, 2017.  Provisions in the legislation expire on December 31, 2022.  West Virginia Governor, Jim Justice, is expected to sign the bill into law.  Click here to learn more.

Early Reflections on the 2016 Election

It will take some time to fully digest the results from last night’s election but I wanted to share some initial thoughts on what this may mean for our industry.   Whether you are a Republican or Democrat we must collectively figure out a way to come back from the divisive politics that characterized this election.  We live in challenging times and if we are going to face the collective domestic and global challenges that are on our door-step we must find a way to embrace change and work together to meet those challenges.  Affordable housing and community development are businesses that serve a higher purpose – we have a mission that transcends partisanship.  Collectively we have made great strides in raising the profile of housing as a core political issue and as we transition to a new Administration and a new Congress we know we have more work to do.

From a more practical perspective, we all are wondering how the new administration will select and pursue its priorities and how that will affect our industry?  The short answer is that I think it’s too soon to say.     We don’t know what we don’t know about President-Elect Donald Trump, what his governing style will be or who the team will be that implements his priorities.   We  have heard during his campaign that attempts at tax reform, immigration reform, and the repeal of the Affordable Care Act are core domestic priorities, but — if history is a guide – finding consensus on any of these items will be extremely difficult.

This may have been a “change” election but substantive legislative action will not be easy, even without divided government.  The margins in both the House and Senate are thin and there remain significant ideological divisions between the two parties as well as within the Democratic and Republican caucuses.

One day in, I speculate that we might see roll back of regulations across the board and a general  prioritization for smaller government.  I expect government programs, even popular ones, will be scrutinized and reevaluated with a respect to ideology but also on their merits as “business units”.   If the reduction of the corporate tax rate remains a priority next year, we know that the LIHTC, Historic Credit, New Markets Tax Credit and the various renewable energy credits will at least be part of the discussion.

We will learn much more about the Trump Administration’s leadership team in the weeks and months ahead as well as what  their initial priorities are for legislative and regulatory action.  In the meantime, we must take nothing for granted and do our collective part to educate the incoming administration and Congress.  NH&RA will be actively engaged in the transition and it will be our continued priority to keep our members connected with this process and how it may potentially impact your respective businesses.

Any political change brings a degree of uncertainty to our lives and businesses.  Fortunately, the NH&RA network is strong and we will embrace today’s change as we embraced it so often in the past – together.  We will continue to convene around our commitment to mission and shared knowledge to grow our industry together. As always, the NH&RA team welcomes your questions, feedback and collaboration.  We encourage you to reach out to our staff, send us your ideas or questions and get involved.

Thom Amdur
Executive Director


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Senate Tax Reform Working Group Report Estimates HTC, LIHTC, NMTC Expenditures

A report from the Senate Finance Committee Community Development & Infrastructure Bipartisan Tax Working Group estimated expenditures for the historic tax credit, low-income housing tax credit, and new markets tax credit for fiscal years 2014-2018. The report is meant to inform the committee’s discussions on tax reform. The report did not make any recommendations regarding the tax credit programs.

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