Inside the issue
Topics: The Historic Advisor
| 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
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
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
| Newark, New Jersey
Tomorrow, twelve state will be voting for new governors: Deleware, Indiana, Missouri, Montana, New Hampshire, North Carolina, North Dakota, Oregon, Utah, Vermont, Washington, and West Virginia. All but four of these states - Indiana, New Hampshire, Oregon, and Washington - have state historic tax credit programs. Just as the tax reform preferences of the to-be-determined president will shape federal programs like the Historic Rehabilitation Tax Credit, these governors will be the influential in the shaping of state historic tax credits whether they are already in place or proposed. And it seems governors are not always a friend to programs that may have overwhelming bi-partisan support for reasons that range from personal to budgetary.
In the October edition of the Novogradac Journal of Tax Credits, we examined efforts for historic tax credit programs in California and New Jersey that fell short of a governor's signature after passing in other state legislative branches.
Read the article: Historic Tax Credits and the Gubernatorial Veto
Topics: state policy