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Credit Worthy News

Mid-Year Review of State Historic Tax Credits

Posted by Katherine Ferguson on Thursday, June 22, 2017

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The Pizitz Building | Birmingham, AL

It's been a wild year for tax reform. It seems the concept has never been more popular. While we await what will unfold on the national stage, states have been wrapping up their 2017 sessions and debating the merits of their own tax credit programs. 

In the June 2017 issue of the Novogradac Journal of Tax Credits, partner Bill MacRostie gives an update on some of the economic studies, the comebacks, and the changes that are shaping the state historic tax credit landscape. 

Read the full story here | 
Plenty of Activity Surrounding State HTC Programs

 

Topics: State HTC, Novogradac Journal of Tax Credits

The Historic Advisor | Spring 2017

Posted by Katherine Ferguson on Thursday, May 25, 2017

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Inside the issue

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Topics: The Historic Advisor, Historic Mills

Historic Tax Credit Legislative Update (from NTCIC)

Posted by Katherine Ferguson on Friday, May 5, 2017

This update comes from Michael Phillips, Public Policy Manager at the National Trust Community Investment Corporation (NTCIC). 

The legislative environment in Washington has intensified as the Trump Administration moves past its 100th day in office. Today the House passed the American Health Care Act by vote of 217-213. If passed by the Senate, it could bring up to $1 trillion in baseline revenue, which would act as a partial offset to reducing the corporate tax rate.  Overcoming this legislative hurdle, even if the legislation fails to advance in the Senate, creates new momentum in the House to tackle tax reform legislation.

In the tax reform debate, attention shifted to the Administration on April 26th after the White House released its “Core Principles” for tax reform.  National Economic Council Director, Gary Cohn and Treasury Secretary, Steven Mnuchin, highlighted an aggressive cut to corporate and individual tax rates to encourage growth.  Beyond “Eliminat(ing) tax breaks for special interests,” the document provides few details about how the Administration would pay for its proposed rate cuts and is silent about how it would treat specific community development credits. The text of the White House document can be found at: http://www.marketwatch.com/story/full-text-of-trump-administration-tax-reform-principles-2017-04-26

In the House and Senate, tax reform remains a critical priority. The Ways and Means Committee is continuing its lead role in developing legislative language for a tax reform bill. In late April, Republican members of the Committee participated in a retreat to find common ground on several outstanding questions that must be resolved before tax legislation moves forward.  Despite calls for greater leadership by the Senate to move the tax reform process forward and strong opposition by some Republican Senators to a House-devised Border Adjustment Tax, there has been little indication the Finance Committee is working quickly to assemble its own version of comprehensive tax reform.

Since the Administration announced it had pivoted its legislative priority to tax reform, there have been many statements about when legislation would be signed into law.  Details about the scope and structure of tax reform will be forthcoming, according to the Administration, but the window to complete tax reform appears to run between October 2017 and March of 2018. Many in Washington view the Administration’s statement of tax reform principles as the beginning of a negotiation process. 

The Administration’s engagement presents an important opportunity to advocate for the Historic Tax Credit with the House, Senate, and the Administration. Now is the time for stakeholders to engage and make the case for the HTC with Congress and the Administration. The future of the historic tax credit in tax reform will depend on the ability of advocates, both in DC and at home, to share the value and need for this economic development incentive. Please make plans to engage your member of congress on behalf of the HTC.

 

Contact Us 
to request more about how you can help advocate for HTCs in your district.

Topics: policy, Advocacy, federal HTC

Connecticut Needs A Higher Historic Tax Credit Cap

Posted by Katherine Ferguson on Wednesday, April 26, 2017

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The Carroll Building | Waterbury, CT

Just as the case in Kentucky, Connecticut has an aggregate cap on their state historic tax credit. And the demand for these tax credit dollars far outweighs the supply. The last three years has seen funds fully reserved quickly with the last year being fulfilled in the first four months of the fiscal year. 

In the April 2017 issue of the Novogradac Journal of Tax Credits, MHA Northeast director Albert Rex takes a look at the history of the Connecticut Historic Rehabilitaiton Tax Credit program and gets insight from some of the key players in the state. 

Read the full story here | 
Connecticut Looks at Boost to Annual Cap

 

Topics: State HTC, Novogradac Journal of Tax Credits, Connecticut, Aggregate Cap

Historic Tax Credits and Urban Revitalization

Posted by Bill MacRostie on Wednesday, April 19, 2017

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@4240 | Cortex Innovation Community

This week’s edition of The Economist magazine has an informative article about urban revitalization in St. Louis. In a city with a turbulent history of racial segregation and housing discrimination, and one The Economist calls “one of the country’s most troubled,” the article describes signs of hope in the form of Millennial in-migration and successful educational efforts in the city’s most challenged neighborhoods. At the heart of these trends the article highlights a public/private innovation district named Cortex Innovation Community being developed—and thriving—in a formerly abandoned industrial area between Washington and St. Louis Universities.

The article describes scores of biotech, medical and scientific start-ups being nurtured by business incubators and other Cortex-sponsored efforts. What the article doesn’t mention—but we know because Cortex and its joint venture partner Wexford Science + Technology are long-standing clients of our firm—is that one of the first efforts in the district was the renovation of an historic warehouse building that obtained critical project financing from federal and state historic tax credits.

In yet another example of what has been repeated hundreds of times across the country for decades, historic tax credits provided risk-capital in the early stages of a multi-year project… and served to catalyze future development in its surrounding neighborhood. We are proud to have been a part of this pioneering project.

We believe that as the new administration and Congress begin to tackle comprehensive tax reform, they would be well-advised to keep in mind the value of federal tax policy in directing capital toward certain activities widely acknowledged to be in the public interest. Republican tax reform orthodoxy in Congress—especially in the House of Representatives—holds that removing incentives from the tax code means the federal government will “stop picking winners and losers” and will allow a purer market to function on its own in choosing where capital should be directed. The reality of our history in the last half century is that widespread disinvestment in many of our cities and small towns make early investment in revitalization efforts too risky for the “pure” market to stomach without backup from government. The historic tax credit has played a vital role in revitalization efforts all over the country, and should be kept in the tax code.

Topics: policy, Advocacy, federal HTC, St. Louis, Cortex Innovation Community