The Time Is Now: Coalition Prepares for Introduction of Historic Tax Credit Modernization Bill
By Caitlin Jones
1 min read
By John Leith-Tetrault, National Trust Community Investment Corporation
Tax Credit Advisor, May 2011: The Historic Tax Credit Coalition (HTCC) is laying the groundwork for the introduction of legislation this spring to modernize the federal Historic Tax Credit (HTC). This year’s bill will include provisions clustered around the themes of promoting the syndication of small transactions, providing incentives for energy efficiency in historic property rehabilitation, eliminating federal taxation of the proceeds of state HTC transactions, and promoting nonprofit sponsorship of historic rehab in low-income census tracts.
Legislative Background
The federal HTC (IRC Section 47), equal to 20% of the qualified rehabilitation expenditures for eligible historic buildings, was last amended by the Housing and Economic Recovery Act of 2008 (HERA). This legislation, which also amended the federal low-income housing tax credit (LIHTC, Section 42), allowed the federal HTC to offset federal alternative minimum tax (AMT) liability, required state housing finance agencies to give priority points to historic rehabilitation in their LIHTC Qualified Allocation Plans, and increased the threshold for triggering disqualified nonprofit/government lease rules in HTC deals from 35% to 50% of leasable space.
