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Georgia Gov. Brian Kemp signed into law this week legislation extending the sunset date for the state’s historic tax credit (HTC) by two years and expanding criteria for a home to be considered historic. S.B. 496 extends the sunset date for the state HTC from Dec. 31, 2027, to Dec. 31, 2029, and requires that after Jan. 1, 2026, homes meet certain specific criteria to qualify for the credit.

The National Park Service (NPS), which oversees the federal historic tax credit (HTC) incentive, launched a new web page with information on sustainability, energy efficiency and resilience in historic buildings. This is the first time that information is gathered on one site. The NPS also issued new guidance on resilience to natural hazards, adapted from guidance issued in 2017 and 2021.

Virginia Gov. Glenn Youngkin signed legislation last week to increase the annual taxpayer cap for state historic tax credits (HTCs) from $5 million to $7.5 million. H.B. 960 makes the change effective for taxable years beginning on or after Jan. 1, 2025. The Virginia HTC is for 25% of qualified rehabilitation expenditures (QREs) with no annual statewide cap.

A bill introduced in the Kentucky House of Representatives would allow the recipient of a transferred state historic tax credit (HTC) to carry the excess credit forward seven years. H.B. 699 would allow a taxpayer to either receive a refund or carry forward the excess for HTC applications received after April 30, 2023. Current regulations allow only the refund.

Properties with rehabilitation funded by federal historic tax credit (HTC) equity totaled $7.3 billion in private investment and created 122,000 new jobs during fiscal year 2022 (FY 2022), according to a report issued this week by the National Park Service (NPS). The Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2022 also showed that half of certified rehabilitation projects in 2022 were in low- and moderate-income areas, 78% were in economically distressed areas and 29% were in communities of less than 50,000 residents.

New guidelines due to legislation passed last year take effect March 16 for Alabama’s state historic tax credit (HTC). H.B. 253 allows taxpayers to claim the credit either in the year the reservation is allocated to the project or the year the property is placed in service; revises language with respect to what qualifies as qualified rehabilitation expenditures (QREs) to broaden the scope of what qualifies for certified historic residential structures; changes information required on HTC transfer agreements; and makes other updates.

A bill introduced in the Colorado General Assembly would extend the sunset date for the state historic tax credit (HTC) and make substantial changes to the incentive’s provisions. H.B. 1314 would extend the expiration date of the credit from Dec. 31, 2029, to Dec. 31, 2032. The legislation would also create a separate pool of $5 million for properties that are at least 50% affordable housing rental homes.

Legislation introduced in the Georgia House of Representatives would extend the sunset date and increase the annual statewide cap for the state historic tax credit (HTC). H.B. 1116 would increase the statewide cap from $30 million to $60 million per year and decrease the cap for historic homes from $25 million to $5 million. The legislation would extend the deadline for all HTCs except for historic homes by one year to Jan. 1, 2029, and extend the sunset date for the historic home credit from Jan. 1, 2025, to Jan. 1, 2035.

Legislation introduced in the Connecticut General Assembly would make the state historic residential rehabilitation tax credit (HTC) apply to additional taxes, make it refundable against certain taxes and carry forward against others. H.B. 5190 would make the tax credit refundable against the individual income tax and could be carried forward for four additional years against others. The Connecticut state home HTC is for 25% of qualified rehabilitation expenses (QREs) for residential properties of five units or more.

Legislation introduced in the Arizona House of Representatives would create a state historic tax credit (HTC) worth 20% of qualified rehabilitation expenditures, with a 5% bonus for a certified affordable housing property. H.B. 2879 would create credits to be awarded through a competitive process, with awards announced twice a year. The first round would award 60% of the annual cap to properties in cities with population of less than 100,000 and the second round would award the remainder to properties anywhere in the state.

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