Historic Rehabilitation Tax Credit Tag Archives

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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NTCIC Celebrates Twentieth Anniversary

Since its inception in 2000, the National Trust Community Investment Corporation (NTCIC) has invested over $1.6 billion in 190 catalytic tax credit investments across 35 states. These efforts have rehabilitated over nine million square feet of historic buildings, created 5,850 units of housing, created or sustained over 30,000 jobs, provided education, healthcare or other services to over 1,000,000 individuals annually and generated over 250 megawatts in renewable energy.

IRS Extends Deadline for Historic Substantial Rehabilitation Test

IRS recently published Notice 2020-58 which extends the measuring period used in satisfying the substantial rehabilitation (sub rehab) test requirement for historic tax credits. Projects with a 24- or 60-month measuring period ending on or after April 1, 2020, and before March 31, 2021, now have until March 31, 2021 to incur sufficient qualified rehabilitation expenditures to satisfy the sub rehab test.

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House Dems $1.5 Trillion Infrastructure Package Includes Affordable Housing Provisions

The House Democrats’ recently released infrastructure bill, Moving Forward Act (H.R. 2), includes a myriad of housing provisions. A vote on the legislation is expected before the Fourth of July recess. While the bill is likely to pass the Democrat-led House, it will face greater resistance in the GOP-led Senate. The bill does not include any pay-fors and Republicans are already panning the bill as dead-on-arrival. However, the bill may set an important marker for future infrastructure negotiations. The Trump administration is reportedly drafting a $1 trillion infrastructure package aimed at spurring the economy.

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Treasury Releases Priority Guidance Plan

The U.S. Department of the Treasury released its 2018-2019 Priority Guidance Plan.  Part one covers implementation of the Tax Cuts and Jobs Act of 2017. Notably, the first item in this section is issuing regulations for LIHTC income averaging. The plan also includes issuing regulations for utility allowances under the LIHTC, clarification and revision of certain NMTC rules and a revenue procedure concerning the use of the HTC in disaster relief.