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Forum Journal (Winter 2014): States with Tax Credits

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This document is enhanced content for "Refundable State Tax Credits for Historic Rehabilitation" by Harry K. Schwartz and Renee Kuhlman in the Winter 2014 Forum Journal ('Extra Credit' Rehabs). To …

This document is enhanced content for "Refundable State Tax Credits for Historic Rehabilitation" by Harry K. Schwartz and Renee Kuhlman in the Winter 2014 Forum Journal ('Extra Credit' Rehabs). To learn more about Preservation Leadership Forum and how you can become a member visit: http://www.preservationnation.org/forum

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  • 1. Winter 2014 Forum Journal: “Refundable State Tax Credits for Historic Rehabilitation” Enhanced Content: State Tax Credit Programs States Aggregate Annual cap Per Project Cap Home- % Credit owner IA $45,000,000 None Yes KY $5,000,000 $400,000 for commercial; $60,000 for homeowners. LA $10,000,000 for homeowners; no cap for commercial. $5,000,000 per- Yes taxpayer for commercial; $25,000 for homeowners. Yes Refund Features Selection method for states with aggregate caps 10% of credits for small projects; 30% for projects located in cultural and entertainment districts; 20% for disaster recovery projects; 20% for projects that create more than 500 permanent new jobs, and 10% for statewide projects. 20% commercial; Refundable subject If dollar value of credits approved exceed $5 million aggregate cap, all 30% homeowners to reduction. credits awarded are reduced ratably to lower aggregate amount of credits granted to $5 million. 25% Fully refundable with interest. 25% for Commercial First-come, first-served. commercial; 50% transferable but not for "vacant and refundable; blighted" homes homeowners fully over 50 years old. refundable in five equal annual installments.
  • 2. ME None $5,000,000 per Yes project 25%; 30% for affordable housing. Fully refundable, if n/a taxpayer claims the federal credit, or does not claim the federal credit, but incurs QREs of $50,000 to $250,000. MD Commercial subject to annual appropriation; homeowners uncapped. $3,000,000 for Yes commercial; $50,000 for owner-occupied 20% with Fully refundable. additional 5% for high performance commercial buildings. Competitive award process for commercial; owner-occupied residences uncapped. MN None None Yes Fully refundable Fully refundable. if federal credit allowed. Grant of 90% of credit if federal credit is not allowed. n/a MS $60,000,000 None Yes 25%; if credit Refund paid in two None provided exceeds equal annual $250,000, 75% of installments. amount of credit not used to offset tax may be claimed as refund in lieu of 10-year carry forward at 100%.
  • 3. $5,000,000 for Yes commercial. Credits earned 2010-2013 over $2,000,000 deferred for payout to 20132015. $50,000 for owneroccupied residences. NY None OH $60,000,000 $5,000,000 Yes 20%, subject to Commercial credits n/a geographical fully refundable targeting. Credit starting 2015. allowed only Credits already where project is issued carry in census tract at forward. If or below state homeowner’s median family income exceeds income. $60,000 Commercial refundability not credit available available. only if federal credit is obtained. 25% Fully refundable but Competitive award process. Applicant refundable must provide evidence that the credit amount limited to is a major factor in the applicant’s $3 million perdecision to rehab. State conducts cost-benefit analysis to determine net project per-year. revenue gain in state and local taxes once the building is used.