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Credit Worthy News

The Historic Advisor | Winter 2018

Posted by Katherine Ferguson on Thursday, February 15, 2018

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INSIDE THIS ISSUE | With new rules in place for the federal historic tax credit in the new year, we take a look at the history and future of the program. This edition of our quarterly newsletter also features historic rehabilitation projects currently underway, state HTC news, recent project honors, and exciting team news.

    
 

Topics: Historic Tax Credits, The Historic Advisor

HTC Watch | Tax Reform One Step Closer

Posted by Bill MacRostie on Tuesday, December 19, 2017

Hill_Christmas| Architect of the Capitol

The tax reform conference committee issued its report late Friday afternoon and the 20% HTC taken over five years was included, a provision that was introduced in an amendment by Sen. Bill Cassidy (R-LA) which reinstated the 20% rate from 10% as contained in the original version of the Senate bill. (The 10% credit for non-historic pre-1936 buildings has been completely eliminated.) Overall, this is good news for the historic rehabilitation industry and historic communities across the country. The next step will be the reconciled version of the bill to be voted on by the House and Senate this week, with signature by the President looking likely before Christmas. 

While the five year provision is not ideal, it appears the federal historic tax credit will continue to be a viable program, and hopefully there will be opportunities in the near future to improve the law. (An important note: should the bill pass as is expected, those wanting to qualify for the current federal HTC program must have the "taxpayer" claiming the credit as owner of the building by the end of 2017.)

An unexpected positive development in the conference report was the inclusion of the option for 60-month phased projects under the transition rule. This was a glaring omission from the earlier versions of the bill, which only addressed the 24-month basis test counting period and created uncertainty for current and future phased projects, and was an issue lobbied by the Historic Tax Credit Coalition (HTCC).

Many thanks are due those of you that stood with the HTCC to voice your support for the tax credit. We encourage you to reach out and thank the legislators that have been champions for the incentive in critical ways, such as Sen. Bill Cassidy (R-LA) and Sen. Tim Scott (R-SC). The need for our advocacy is far from over, but we could not have gotten to where we are now without the efforts of all involved.

Follow us on LinkedIn and Twitter for the latest on this and other historic tax credit news.  

Topics: federal HTC, tax reform

The Historic Advisor | Fall 2017

Posted by Katherine Ferguson on Friday, November 17, 2017

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Inside the issue

  • WHAT WE ARE WORKING ON
  • HTC WATCH
  • PROJECT HONORS

    
 

Topics: The Historic Advisor, Innovation

House Tax Reform Legislation Eliminates Historic Tax Credit

Posted by Katherine Ferguson on Thursday, November 2, 2017

A day late, but nonetheless what we expected. The House tax reform bill released this morning does, in fact, eliminate the historic tax credit. This push for tax reform is still in early days and no doubt there will be many changes, maybe even the retention of the historic tax credit, but advocacy is still of the utmost importance. Perhaps now more than ever.

TAKE ACTION NOW

The release of the proposed legislation means that we now know what we are asking for: DO NOT REPEAL THE HISTORIC REHABILITATION TAX CREDIT. It means supporters of historic preservation and believers of economic prosperity driven by historic rehabilitations need to be very specific about what this program has to offer and what we stand to lose. Last year alone, over 1,000 historic rehabilitations were completed; 109,000 jobs were created; $1.7 billion federal, state, and local taxes were generated; and these projects generated $6.2 billion in GDP.

Over the lifetime of the program (1978-2016) these numbers are staggering:

  • 42,293 projects have been certified
  • 2.4 million + jobs have been created
  • $29.8 billion federal taxes have been generated for $25.2 billion credits allocated (that's a $1.20:$1 ratio that proves the program is revenue positive)
  • $144.9 billion has been contributed to GDP

These aggregate numbers are impressive. But it is also the unique placemaking that comes from the reuse of historic buildings in your very own communities that demonstrate the real value of the historic tax credit.

Why are these historic buildings important to you and your community? What positive change and economic development opportunities have you seen from these projects where you live, work, or play? In what state would these places and neighboring properties be without development that was incentivized by the historic tax credit? What projects will not get developed in the future without this incentive?

Consider these questions and take action now before it is too late. We still have a ways to go before the bill becomes law. But House and Senate Republicans are promising an aggressive approach to passage and we must take this very seriously. Losing our historic tax credit would change the landscape of future development in towns and cities across the country, making it more equitable to drastically alter or demolish our historic places. Once gone, we can never replace them.

The same can be said of the historic tax credit. Once gone, an effort to replace what is lost could have uncertain outcomes. We know what Gerald Ford's administration began and Ronald Reagan continued and supported works. We know that its foundation is strong and its bones are good. We know it should not be demolished.

Join us as we stand with the Historic Tax Credit Coalition and others throughout the country to support this historic tax credit. Your contribution of words and support could make all the difference.

Check out this list of important Republican legislators to contact today.

 

Topics: HTC, Historic Tax Credits, tax reform

President Reagan Supported the Historic Tax Credit. Do You?

Posted by Katherine Ferguson on Thursday, October 26, 2017

In 1984, Ronald Reagan was outspoken in his support of the historic tax credit. Today, the historic tax credit is in jeopardy. Just this morning, House Ways and Means Chairman Kevin Brady announced the scheduled release of a House tax reform bill on Wednesday, November 1, and, as we understand it, the bill will NOT include the federal historic tax credit. 

The time is now to voice your support for the federal historic tax credit. As tax reform takes center stage in our nation's capital, the Historic Tax Credit Coalition, the National Trust for Historic Preservation, and many other advocates of this important economic development and preservation tool are speaking up. Please join us!

Contact us with any questions you have about these or other historic tax credit matters. And stay tuned for more information and updates about federal HTC reform in the coming weeks.


Thank you!     
The MHA Team

Topics: Historic Tax Credits, tax reform