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Credit Worthy News

The Historic Advisor | Winter 2017

Posted by Katherine Ferguson on Thursday, February 16, 2017

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Inside the issue

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Topics: The Historic Advisor

The Case for Uncapping Historic Tax Credits in Kentucky

Posted by Katherine Ferguson on Wednesday, February 8, 2017

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| Louisville, Kentucky

When state legislators consider implementing historic tax credit programs, a conservative approach is often to cap the program in order to control the cost. While this achieves the desired short-term goal, it can limit the potential of such programs to stimulate economic development to its fullest potential by creating competition and limitations that keep developers out of the market. 

The historic tax credit in Kentucky was created as part of the 2005 JOBS for Kentucky Tax Modernazation Plan and has an annual aggregate cap of $5 million with a $400,000 per-project cap. But in 2014, a short-term bill called the Enhanced Historic Tax Credit was passed that was aimed at stimulating development in tax increment finance communities in the state. 

Juxtaposing these two programs and their economic impacts, we can glimpse what effects an uncapped program may have on historic development in Kentucky and support a national call for uncapped state programs. We explore this topic in our Februrary 2017 State of Historic Tax Credits column of the Novogradac Journal of Tax Credits.

Read the full story here | 
Capping Kentucky: The Case against Annual Aggregate Caps for State Historic Tax Credits

 

Topics: State HTC, Kentucky, Novogradac Journal of Tax Credits

A Year in Review for State Historic Tax Credits

Posted by Katherine Ferguson on Wednesday, December 28, 2016

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 The Lofts at NoDa Mills | Charlotte, NC
The Community Builders

As 2016 comes to an end, we are turning our attention to the new year ahead. It is also a time to reflect on the changes that came with a year of political uncertainty. In our December Novogradac Journal of Tax Credits article, we invite you to review some of the headlines of the year and insight into what to watch for in 2017. 

Read the article: State Historic Tax Credits: A Year in Review

Topics: state policy

Urgent Message to Historic Tax Credit Advocates

Posted by Bill MacRostie on Tuesday, December 13, 2016

The Historic Tax Credit Coalition (HTCC) and MacRostie Historic Advisors are asking that historic tax credit advocates take action TODAY to contact key representatives and voice their support for the federal historic tax credit program. As outlined in the letter below from John Leith-Tetrault, Public Policy Advisor for the National Trust Community Investment Corporation (NTCIC), the time is now to act as House Republicans begin meetings on December 14 to discuss their plan for comprehensive tax reform.

Instructions for how you can reach out and an outline for your support are explained below. Thank you for your support on this important action.

_________________________________________________________________________________

Dear HTCC Members,

This is the most important message I have ever sent to HTCC members since its inception in 2009. House Republicans are meeting next week to discuss their path forward on comprehensive tax reform, which will impact our industry’s collective bottom line in 2017.

The talk is over and the time for action is now.

Ways and Means Republicans are convening in a special meeting in Washington, D.C. on December 14-15 to try to achieve consensus on the broad parameters of tax reform. Tax staff will then finalize bill language. Intelligence we have tells us that the bill is likely to be a stripped down version of tax reform – similar to the Blue Print we have discussed – with many, if not all credits and deductions eliminated.

It isn’t hard to see that if the HTC is not in the bill, and with Senate action delayed until later in 2017, there may well be a period of industry uncertainty this spring that could negatively impact the HTC market and the timing of transactions coming out of predevelopment.  

Here is what you can do, right now. There are 9 Republican Ways and Means co-sponsors of the Historic Tax Credit Improvement Act (HR 3846) listed below. In addition, we have had numerous contacts with 3 more Members, Jason Smith (MO-8), George Holding (NC-13) and Tom Rice (SC-7). If you have a project, office or client in any of these districts or states send an email to the tax staffer listed below for that Member to advocate for retention of the credit. Phone numbers are also provided. Please do so no later than Wednesday December 13.

Your message should be that you hope that your Member will speak up now for the retention and improvement of the HTC as part of a reformed tax code. Briefly outline your company’s connection to the district/state and mention at least one project that illustrates the importance of the HTC. Make it clear that “but for” the HTC, these projects cannot be done. If you have future projects that would not get done if the credit disappears, all the better. Don’t hesitate to reach out to me or Patrick for help in drafting your correspondence. Please copy Patrick Robertson at (Patrick.Robertson@fticonsulting.com) and me at (jleith@ntcic.com) on your final email and any response you receive. If you make a phone call, send us a note about what you learn.

Thanks in advance for your prompt action to save the Historic Tax Credit.

John Leith-Tetrault

 

Name

District

Tax Staff Name

Tax Staff

Phone Number

Mike Kelly

PA-3

Lori Prater

lori.prater@mail.house.gov

202-225-5406

Pat Tiberi

OH-2 

Whitney Daffner

whitney.daffner@mail.house.gov

202-225-5355

Tom Reed

NY-23

William Davis

william.davis@mail.house.gov

202-225-3161

 

 

Drew Wayne

drew.wayne@mail.house.gov

 

Lynn Jenkins

KS-2

Abby Pezzi

abby.pezzi@mail.house.gov

202-225-6601

Jim Renacci

OH-16

Randy Herndon

randy.herndon@mail.house.gov

202-225-3876

Dave Reichert

WA-8

Lindsay Manson

lindsay.manson@mail.house.gov

202-225-7761

Pat Meehan

PA-7

Michael Kirlin

michael.kirlin@mail.house.gov

202-225-2011

Erik Paulsen

MN-3

Mike Stober

mike.stober@mail.house.gov

202-225-2871

Kristi Noem

SD-1

Andrew Christianson

andrew.christianson@mail.house.gov

202-225-2801

Jason Smith

MO-8

Mark Roman

mark.roman@mail.house.gov

202-225-4404

 

 

Justin Sok

justin.sok@mail.house.gov

 

Tom Rice

SC-7

McArn Bennett

mcarn.bennett@mail.house.gov

202-225-9895

George Holding

NC-13

Matt Stross

matt.stross@mail.house.gov

202-225-3032

 

 

Topics: policy, Advocacy, federal HTC

The National Trust for Historic Preservation Honors Two MHA Projects at Annual Conference

Posted by Katherine Ferguson on Tuesday, November 22, 2016

Congratulations to the project teams of the Chicago Athletic Association Hotel and the Stony Island Arts Bank in Chicago for each receiving a Dreihaus Preservation Award from the National Trust for Historic Preservation at the PastFoward Conference held in Houston, Texas last week. Below are the award videos that accompanied the honors. 

Chicago Athletic Association Hotel

 

Stony Island Arts Bank