Welcome to Heritage Ohio’s Tax Credit Workshop

Agenda 9:15 - How Tax Credits Work 10:15 - Preparation and Application Overview 11:00 - Structuring & Financing the Deal 12:00 - Networking Lunch 1:00 - Case Study 1:30 - Roundtables 3:30 - Wrap Up Questions & Answers 4:00 - Project Tour

9:15 - How Tax Credits Work

10:15 - Preparation and Application Overview

11:00 - Structuring & Financing the Deal

12:00 - Networking Lunch

1:00 - Case Study

1:30 - Roundtables

3:30 - Wrap Up Questions & Answers

4:00 - Project Tour

How Tax Credits Work Mary Forbes Lovett Duane Van Dyke, AIA, LEED AP

Mary Forbes Lovett

Duane Van Dyke, AIA, LEED AP

Why Historic Preservation? Revitalizes our cool, hip, & walkable existing urban neighborhoods and Main Streets Improves Quality of Life Attracts and retains the next generation of Entrepreneurs Creates jobs and increases property values Contributes to income tax in the region Contributes to the future success of our State

Revitalizes our cool, hip, & walkable existing urban neighborhoods and Main Streets

Improves Quality of Life

Attracts and retains the next generation of Entrepreneurs

Creates jobs and increases property values

Contributes to income tax in the region

Contributes to the future success of our State

Cleveland

Colonial Marketplace

Colonial Marketplace

Cleveland Arcade

East 4th

Euclid & East 9th

668 Euclid

Cleveland’s Historic Gateway Neighborhood

Cleveland’s Historic Warehouse District

Tax credits were responsible for over almost 1 billion in redevelopment in these two neighborhoods.

Tiffin

Bellevue

Saint Clairsville

What are the different types of credits available for real estate projects? Federal Historic Tax Credits State Historic Tax Credits Federal New Market Tax Credit State New Market Tax Credit Low Income Housing Tax Credits Façade & Lost Development Easements

Federal Historic Tax Credits

State Historic Tax Credits

Federal New Market Tax Credit

State New Market Tax Credit

Low Income Housing Tax Credits

Façade & Lost Development Easements

What is a tax credit? An indirect federal subsidy used to finance rehabilitation of historic and older buildings

An indirect federal subsidy used to finance rehabilitation of historic and older buildings

What is the difference between federal and state historic tax credits? Types of qualifying structures Credit vs. Refund Taxation of Benefit End User Timing Flexibility Recapture Scope of Rehabilitation Cap

Types of qualifying structures

Credit vs. Refund

Taxation of Benefit

End User

Timing

Flexibility

Recapture

Scope of Rehabilitation

Cap

What is the difference between a 10% & 20% credit?

How and when do you turn a tax credit into cash for your project?

Who can claim the credit, i.e. who is the investor?

What is recapture and how does it affect a developer?

Can a nonprofit be involved in a historic rehabilitation? Disqualified lease Tax exempt partner

Disqualified lease

Tax exempt partner

Assuming that the building qualifies, when does it make sense to use tax credits?

Can the HTC be combined with other tax credit programs?

Can you give me an example on how this works for a simple transaction?

What are the advantages and disadvantages of doing a tax credit transaction?