Legislation in the Missouri House of Representatives would modify the state historic tax credit (HTC) to increase the tax credit percentage for certain properties. H.B. 2815 would provide an HTC of 50% of qualified rehabilitation expenditures (QREs), with a project cap of $500,000, for the rehabilitation of an essential community or heritage facility and a 35% credit for property in counties with population of less than 1 million residents (except for counties between 700,000 and 800,000 residents). The Missouri HTC is otherwise for 25% of QREs. The legislation would reserve up to $5 million for the essential community or heritage facility for the fiscal year July 1, 2022-June 30, 2023, with an increase of $1 million annually up to a maximum of $10 million. The bill would also make changes to non-income-producing single-family residential property provisions for the HTC.
At its regular meeting on January 22, the Board of Trustees of the Mississippi Department of Archives and History (MDAH) awarded over $3 million on behalf of the Community Heritage Preservation Grant program to eighteen preservation and restoration projects from across the state. The Community Heritage Preservation Grant program, authorized and funded by the Mississippi Legislature, helps preserve and restore historic courthouses and schools in Certified Local Government communities and other historic properties.
“The Legislature has saved hundreds of significant Mississippi properties through this program,” said MDAH director Katie Blount. “The Department of Archives and History is grateful for the Legislature’s support and pleased to be able to help preserve these local treasures.”
The grant awards are as follows:
Auburn, Natchez, Adams County-$234,192
Portico columns, Billiard Hall, and Duncan Pavilion restoration
Alcorn County Courthouse, Corinth, Alcorn County-$150,000
Courtroom and interior restoration
Carrollton Water Tower, Carrollton, Carroll County-$47,784
Chickasaw County Courthouse, Houston, Chickasaw County-$214,690
Saenger Theater, Hattiesburg, Forrest County-$250,000
Holmes County Courthouse, Lexington, Holmes County-$276,630
Second floor courtroom restoration; masonry repointing
Fulton Grammar School, Fulton, Itawamba County-$93,860
Jefferson Davis County Courthouse, Prentiss, Jefferson Davis County-$220,800
Madison County Jail (Old), Canton, Madison-$54,456
Roof and interior repairs
Columbia Waterworks, Columbia, Marion County-$274,027
ADA restrooms; HVAC & electrical installation, interior paint
Booker T. Washington School, Philadelphia, Neshoba County-$115, 200
Gym floor and bleacher repairs
Noxubee County Library, Macon, Noxubee County-$80,000
Roof restoration; masonry and plaster repairs
McCormick Administration Building, Senatobia, Tate County-$264,000
Exterior and window restoration; masonry repairs
Bowmar Elementary School, Vicksburg, Warren County-$245,395
Warren County Courthouse, Vicksburg, Warren County-$100,000
Overall site drainage repairs; masonry wall stabilization
Edna M. Scott Elementary, Leland, Washington County-$167,920
Exterior repairs; masonry wall stabilization
Wilkinson County Courthouse, Woodville, Wilkinson County-$168,000
Clock Tower Stabilization
Yalobusha County Courthouse, Water Valley, Yalobusha County-$191,275
Grant awards are paid on a reimbursable basis upon the successful completion of the entire project or at the time of the completion of pre-established phases of the project. Prior to application, all buildings must have been designated Mississippi Landmarks. Only county or municipal governments, school districts, and nonprofit organizations granted Section 501(c)(3) tax-exempt status by the Internal Revenue Service may submit applications.
To become a Certified Local Government, a community must adopt a preservation ordinance establishing a preservation commission in accordance with federal and state guidelines. Once the commission has been established, application for CLG status may be made to the National Park Service through the Mississippi Department of Archives and History. MDAH works closely with local government officials and citizens to help them create and manage a workable local historic preservation program. To learn more about the CLG program, contact Meredith Massey in the Historic Preservation Division of MDAH, at 601-576-6538.
Legislation to create a state low-income housing tax credit (LIHTC) was introduced this week in the Illinois House of Representatives. H.B. 4596 would create the Build Illinois Home Tax Credit, which would have a statewide annual cap of $35 million, of which 75.5% would be allocated by the Illinois Housing Development Authority, with the remainder allocated by the City of Chicago Department of Housing. The credit could be taken over 10 years and carried forward five years. Any federal recapture would result in state recapture. The credit would be for taxable years after Jan. 1, 2023. Illinois currently has an affordable housing tax credit for 50% of a donation of money, securities, real estate or personal property to a nonprofit affordable housing sponsor for an affordable housing project.
Landowners in New York will now be able to get a tax break to restore historic barns on their property.
Last month, Governor Kathy Hochul signed off on the Historic Barn Rehabilitation Tax Credit. It was welcome news for Bernard Melewski, owner of Black Creek Farm, who recently restored his 1730 Dutch barn.
Melewski began his efforts to restore the centuries-old barn after hearing about the tax credit offered by the federal government. Unfortunately, once he was able to proceed with the project, the government eliminated the program as a result of changes in the tax code under the Federal Tax Cuts and Job Act of 2017.
Melewski says he was unable to hold off any longer on the needed repairs to the barn. So he continued with the restoration anyway; now, he says he has a possibility of recouping some of the $60,000 to $80,000 he spent to restore the barn due to legislation.
“It is a 25% tax credit to make it more affordable for owners of historic barns constructed before 1945 to preserve these buildings,” said State Sen. Michelle Hinchey.
The credit will not only allow barn owners to bring them back to use for farming purposes, but also for other ventures like event venues, craft breweries or tasting rooms to help build the economy in rural areas across the state.
Hinchey says the tax credit will help revitalize communities by bringing more money into local towns keeping it local and helping and other small businesses.
Melewski and Hinchey both say that rehabilitating the buildings is critical to preserving the history and rural economies of regions across New York.
Historic barn owners that have renovated their barns after 2017 will be able to retroactively apply for the tax credit. Owners of barns built before 1945 can apply for the Historic Barn Rehabilitation Tax Credit with the state Historic Preservation Office.
For more information, contact your regional tax credit coordinator or contact Senator Hinchey’s office at 845-331-3810.
Wednesday, December 22, 2021 – 11:00am
Legislation in the Florida Senate would create a state historic tax credit (HTC) incentive worth 20% of qualified rehabilitation expenditures (QREs) for properties that are eligible to receive the federal HTC, with a 10% bonus credit for properties in areas designated as part of the Florida Main Street Program. S.B. 1310 is similar to a bill filed in October in the state House of Representatives and would apply to properties rehabilitated and placed in service July 1, 2022, or later. Florida is the only state bordering the Atlantic Ocean that doesn’t have a state HTC incentive.
News Release Date: December 22, 2021
WASHINGTON – According to the Rutgers University’s Center for Urban Policy Research, the Federal Historic Preservation Tax Incentives Program contributed more than $13.8 billion in output in terms of goods and services to the U.S. economy, generated approximately 122,000 jobs, and added an overall $7 billion in gross domestic product (GDP) in fiscal year 2020. The program is administered by the National Park Service (NPS) and the Internal Revenue Service (IRS), in partnership with State Historic Preservation Offices.
“Historic preservation efforts do more than maintain and showcase our nation’s history – they also support community revitalization, job creation, affordable housing, and small businesses, particularly in historically marginalized communities whose histories are integral to America’s story,” said Secretary Deb Haaland. “I am proud of the Department’s efforts to preserve our special places and ensure that future generations can learn about the rich history of every community.”
“Investments in the Federal Historic Preservation Tax Incentives Program have extensive benefits to the national economy, generating more than $195.2 billion in GDP since 1978. This incredible federal/state partnership has enabled more than 46,000 preservation and rehabilitation projects while revitalizing communities across the country,” said NPS Director Chuck Sams.
The Federal Historic Preservation Tax Incentives Program, commonly known as the Historic Tax Credit, provides a 20% federal tax credit to property owners who undertake a substantial rehabilitation of a historic building in a commercial or other income-producing use while maintaining its historic character.
The NPS certifies that a building is historic, and therefore eligible for the program, and that the rehabilitation preserves the building’s historic character. The IRS is responsible for administering the other aspects of the tax credit under the Internal Revenue Code. The tax incentives program has helped to revive abandoned or underutilized schools, warehouses, factories, churches, retail stores, apartments, hotels, houses, agricultural buildings, offices, and other buildings across the country, and, in turn, has helped support the redevelopment of entire downtowns and neighborhoods. Seventeen percent of the projects certified in Fiscal Year 2020 were located in communities of less than 25,000 people.
According to this year’s report, about half of the certified rehabilitation projects were located in low- and moderate-income areas and three-quarters of all projects were in economically distressed areas. Program-related investments created approximately 122,000 jobs, including 42,000 jobs in construction and 27,000 jobs in manufacturing, and generated $2.3 billion in construction and $2.0 billion in manufacturing respectively. As a result of both direct and multiplier effects, and due to the interconnectedness of the national economy, sectors not immediately associated with historic rehabilitation, such as agriculture, mining, transportation, and public utilities, benefited as well.
State Historic Preservation Offices are the first point of contact for information and guidance for property owners interested in the program, and the NPS works closely with them in the administration of the program. A breakdown by state of the economic impacts and other program information is included in the reports.
Fiscal Year 2020 Highlights and Reports
- Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2020
- Federal Tax Incentives for Rehabilitating Historic Buildings Annual Report for Fiscal Year 2020
Rehabilitation in Action
Forty-Four & Sixty-Six Service Station (Boise, Idaho)
Instead of demolition and sale of the land to the highest bidder, owners of the Forty-Four & Sixty-Six Service Station decided to preserve and rehabilitate the unique mid-century building for a future tenant who would appreciate the historic character of the building and sensitively adapt it to a modern use. The rehabilitation cost approximately $166,364 and received the 2020 Orchid Award for Excellence in Historic Preservation from Preservation Idaho.
Fiscal Year 2020 Highlights
Rehabilitated Housing Units
Rehabilitated new or existing housing units: 16,624
Low- and moderate-income housing units: 5,889
Total estimated rehabilitation investment (Qualified Rehabilitation Expenditures): $6.5 billion
Historic rehabilitation projects certified: 989
Estimated total jobs created: 122,000
Output (Goods and Services): $13.8 billion
Gross domestic product: $7 billion
Income created: $5.2 billion