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Credit Worthy News

What you need to know about the new Alabama HTC

Posted by Katherine Ferguson on Thursday, August 17, 2017

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Bell Building | Montgomery, AL

Perhaps one of the most anticipated state historic tax credit programs of the year, the Alabama Historic Rehabilitation Tax Credit was passed in May 2017. The revised legislation comes after a former program was allowed to sunset, putting some projects around the state on ice for nearly two years.

In the August 2017 issue of the Novogradac Journal of Tax Credits, MHA Southeast director Richard Sidebottom explains the factors at play and outlines the major changes that differentiate it from the previous Alabama HTC program. 

Read the full story here | 
Alabama Historic Tax Credit is Rehabbed

 

Topics: State HTC, Novogradac Journal of Tax Credits

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

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

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 Political Champion for Historic Credits

Posted by Bill MacRostie on Wednesday, March 2, 2016

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I just returned from the ULI Carolinas' Meeting in Raleigh, North Carolina. What a difference enlightened leadership can make in effective revitalization efforts! In stark contrast to Governor Jerry Brown—whose spirited attack on state historic credits in California at last year's ULI Fall Meeting in San Francisco betrayed an ignorance of their power—Republican Governor Pat McCrory’s welcoming remarks in Raleigh opened with an unsolicited account of the importance of the newly revitalized state historic credit program in North Carolina.

Those of us in the trenches who have been watching the transformative effect of the state and federal historic credit programs at work in North Carolina are true believers in their effectiveness, but it was nice to hear a successful politician make the same case. And Gov. McCrory’s obvious enthusiasm for historic credits made clear that his strong leadership last year to replace the state’s sunsetting program was heartfelt.

The Governor’s enthusiasm aside, during my career I cannot think of a state where I’ve seen a more dramatic impact on communities from historic credits—or more quickly. In the last fifteen years, downtown Durham has literally been transformed, with the initial catalyst being the project financing power of historic credits. The same in Winston-Salem… and in many other cities and mill towns throughout the state.

It was terrific to hear confirmation that the Governor agrees.

Topics: ULI, State HTC, Conferences