Join us in reminding our New York Congressional Representatives that historic preservation can provide opportunities to aid in nationwide economic recovery as we look towards our post-COVID-19 future.
Urge your Representative to Cosponsor HTC-GO. Thank you to NY Representative Brian Higgins for leading the way on this important legislation!
What’s in the New Version of the HTC-GO Legislation?
Temporary Provisions
The HTC-GO legislation (H.R. 2294) temporarily increases the rehabilitation credit (IRC § 47) to address projects impacted by the pandemic.
This provision increases the HTC percentage from 20% to 30% for 2020 through 2024.
The credit percentage is phased down to 26% in 2025, 23% in 2026, and returns to 20% in 2027 and thereafter.
Justification: Developers and building owners are experiencing challenges in rehabbing historic buildings. The financial markets have slowed, making it difficult for projects to access capital and stalling complex historic real estate developments. The increased volatility in the market and project risk is forcing banking institutions to decrease their loan frequency and the overall amount while tightening underwriting requirements. Increases in material and construction costs and an uncertain tenant market have further impacted potential developments. As a result, many projects have stalled or are no longer feasible.
Permanent Provisions
Increases the credit from 20% to 30% for projects with less than $2.5 million in qualified rehabilitation expenses, making it easier to complete small rehabilitation projects.
Lowers the substantial rehabilitation threshold, making more buildings eligible to use the HTC.
Eliminates the requirement that the value of the HTC must be deducted from a building’s basis (property’s value for tax purposes), increasing the value of the HTC and making it easier to pair with the federal Low-Income Housing Tax Credit.
Makes the HTC easier to use by nonprofits for community health centers, local arts centers, affordable housing, homeless services, and others by eliminating IRS restrictions that make it challenging to partner with developers.
Justification: The above provisions would make important changes to the HTC to encourage more building reuse and redevelopment nationwide and would particularly benefit small, midsize, and rural communities. These provisions would not only make the credit easier to use and more historic properties eligible, but it would also enhance the value of the HTC and make the credit easier to use to create affordable housing.
Contact your reps today to let them know these are incentives that are important to you, your organization or business, and community. The National Trust for Historic Preservation (NTHP), The National Trust Community Investment Corporation (NTCIC), and the Historic Tax Credit Coalition (HTCC) are pushing hard for these inclusions, with support from the Preservation League of NYS in New York, but your representatives need to hear from their constituents!
You may wish to share the HTC Fact Sheet and related legislation with Congressional Offices and review the project lists in your region.
For further assistance with your advocacy, contact: NTHP, NTCIC, HTCC, or PLNYS:
Looking for a recap on how we got here? Catch up with the recording of the January 26 New York federal advocacy webinar.
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