IRS rings in 2014 with more clarity on tax credit structure

A somewhat quiet, but nonetheless controversial, tax credit ruling erupted in August of 2012, when a court decision found that a development partner in a historic rehab was not, in fact, a bona fide development partner. What did this mean? Quite simply, this ruling had the potential to take redevelopment partners, often the development partners who put upfront construction money into a project, off rehab projects. And removing the funding source to make construction happen means stopping rehab projects in their tracks (this article from the Canton Repository shows how the Boardwalk decision hit home in Ohio.)

Without clear guidelines on how the IRS would treat development partners, active investment has lagged in the past 16 months. Fortunately, the IRS recently published guidelines to clarify development partners’ relationships, and how those partners can make use of tax credit allocations. The Preservation Exchange, a blog originating from Preservation Studios in Buffalo, NY, published a post providing analysis of what the IRS guidelines may mean for future developer partnership structures. You can read the PE post here.

You can read the IRS guidelines here. Heritage Ohio will continue to monitor the impact of the IRS guidelines and share updates as we learn of them.

ODSA Announces Cincinnati Historic Tax Credit Event

You are invited to celebrate Cincinnati’s Historic Buildings… 

Tuesday, January 14, 2014
10:00 a.m.
21c Museum Hotel
609 Walnut Street
Cincinnati, Ohio 45202 

The Ohio Development Services Agency invites you to this special event to celebrate Cincinnati’s preservation of historic landmarks. Speakers include David Goodman, Director of the Ohio Development Services Agency; Mary Cusick, Chief of TourismOhio; Stephen Leeper of the Cincinnati Center City Development Corporation (3CDC) and Kevin Pape of the Over-the-Rhine Foundation. Join us for a presentation and tour of the award-winning facility, 21c Museum Hotel and learn about other Ohio Historic Preservation Tax Credit projects coming to fruition in 2014.

Questions can be addressed to Nathaniel Kaelin, Ohio Historic Preservation Tax Credit Program Manager, at (614) 728-0995.

Parking available via valet (for a fee) and at nearby garages

Ohio DSA announces Round 11 tax credit recipients

Today the Ohio Development Services Agency announced that 31 buildings in 10 different communities received allocations of the Round 11 tax credits. As in past rounds, the credits were divided for projects throughout the state (although the northwest and southeast regions were absent from this round). While few dispute the power of the credits in making multi-million dollar rehabilitation projects possible (with three separate projects taking the maximum $5 million per project), the state continues to work to make sure smaller projects don’t fall through the cracks. This round of credits included a $65,000 rehab project in Wilmington. The Wilmington project is slated to receive $13,825. You can read the ODSA press release here.

Round 9 Preservation Tax Credits…making and remaking history

Yesterday the Ohio Development Services Agency (the former Ohio Department of Development) announced the tax credit awards from the 9th Round of the Ohio Historic Preservation Tax Credit. You can read the full release here.

The big projects we’ve seen in the past are back again (Cleveland rehabs account for tens of millions of dollars in project costs); however, we also continue to see the emergence of smaller projects. The Lazarus House Apartments in Columbus will be rehabilitated into three apartment units in Columbus, at a total project cost of $265,860, taking a state tax credit of $46,195. While I love to see big projects such as the East Ohio Building in Cleveland with its 65 million dollar construction impact, I’m even more heartened to see the scale of projects receiving funding. I could envision the Lazarus Apartments happening in any of our Main Street communities, and I know if we can pump more construction investment into our Main Street communities, they will be better positioned to thrive far into the future.

Stay tuned to Heritage Ohio and Ohio DSA for updates on the state tax credit. For now, the next date to remember is March 30, 2013. Round 10 applications are due then.

Best wishes to you for a prosperous 2013 filled with preservation & revitalization!

Ohio Historic Preservation Tax Credits Round 9 Now Open for Applications

The application period for Round 9 of the Ohio Historic Preservation Tax Credit program is now open. The application form and self-scoring sheet can be downloaded under ‘General Program Forms’ on the program website: http://development.ohio.gov/Urban/OHPTC/. A total of $30 million in tax credit allocation is currently available for Round 9 applicants.

All applicants are required to schedule pre-application meetings with both the Office of Redevelopment and the Ohio Historic Preservation Office prior to submitting an application. Applicants are encouraged to contact both offices early in the application submission period to schedule the meetings to ensure availability. The Ohio Historic Preservation Office can be contacted by calling 614-298-2000.

Please note that applications must be submitted (not postmarked) to the Office of Redevelopment by 5:00 p.m. on Monday, October 1, 2012.

Round 9 will be administered on the following schedule:
- Application Submission Deadline: October 1, 2012
- Application Review Period: October 2 – December 17, 2012
- Approved Applications Announced: on or before December 31, 2012

Please contact Nathaniel Kaelin at nathaniel.kaelin@development.ohio.gov if you have any questions about the application and to schedule a pre-application meeting. Thank you for your interest in the Ohio Historic Preservation Tax Credit Program.