The newly introduced legislation eliminates this requirement, enhancing the credit after uncertainty about investment potential with the change of terms in last year's new tax reform law that required the credit be taken over five years.
Reviews of the new tax reform bill have been mixed. Historic tax credits were retained, but the terms of claiming the credit changed. Other tax incentive programs were modified or done away with entirely. Depending on whom you ask, these changes can be positive or negative.
I’m attending the ULI Fall Meeting in San Francisco, and it’s a fantastic conference with heavy emphasis on future tech and demographic trends; their likely impact on cities, development and land use.
Under the Class “L” program, owners of qualifying commercial and industrial properties designated as “landmarks” and undergoing “substantial rehabilitation” can have their property tax assessment levels reduced for a twelve-year period. Where commercial and industrial properties are typically assessed at 25% of market value, Class L buildings are assessed at only 10% for ten years, 15% in year 11 and 20% in year 12.
Katrina presented an overwhelming burden for those looking to revitalize buildings of significance in New Orleans and throughout the Gulf Coast. Swift action by Congress and President Bush established the Gulf Opportunities Zone Act of 2005 (GO Zone), a bill that among other things increased the federal historic rehabilitation tax credit to 26% from the normal 20% for Gulf Coast regions affected by Katrina as well as Hurricanes Rita and Wilma that hit only a few months later.