Advocacy Alert: Proposed tax credit act needs your support!
To the excitement of preservationists across the country, the Historic Tax Credit Improvement Act (HR 3846) was introduced Wednesday, October 28. So why the excitement? For starters, HR 3846 offers the following tax credit improvements:
1) Small deals (less than $2.5 million in qualified rehabilitation expenditures) would see the eligible credit jump from 20% to 30%.
2) Transfer of credits as a tax certificate could give owners of smaller projects greater flexibility to bring in investors, and make capital easier to access.
3) Substantial rehabilitation (the threshold for becoming eligible to take advantage of the credits) would drop to 50% of the adjusted basis from the current 100%.
Add in better treatment of state tax credits when it comes to federal taxation, and other improvements, and you can begin to see how these changes, if passed, could inject a wave of new investment for countless small project rehabs.
Here in Ohio, we have Representative Pat Tiberi, and Representative Mike Turner to thank for helping lead the way as original co-sponsors of the bill, but we’re reaching out to you today, to encourage you to contact your representative, to ask him or her to sign on as co-sponsors for HR 3846 (or to thank Reps Tiberi and Turner for their support). You can find your representative here.
Check out this one-pager from the Trust, which summarizes the bill and how it improves the current federal historic tax credit.
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