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**June 2015** Historic Seattle Hotel Benefits from Rapid HTC Transaction

One of NTCIC’s historic tax credit projects, The Palladian Hotel, was featured on the cover of Novogradac & Company’s June Issue of Journal of Tax Credits. The Palladian success story was covered in the publication’s historic tax credits section. Click the image below to read the full article:

 

June 2015 Novoco Cover of Palladian Hotel

**April 2015** Novogradac Article by NTCIC President, John Leith-Tetrault

Click on cover to read full article

National Trust for Historic Preservation Supports HTC in Interview with Milwaukee Press

Milwaukee Business Journal- Historic Tax Credit Backers Reinforce Argument– Interview with National Trust for Historic Preservation President Stephanie Meeks

August 2014 “New Study Demonstrates the Catalytic Impact of the Historic Tax Credit” — article by John Leith-Tetrault in Novogradac Journal of Tax Credits

A new report explains how the HTC transforms neighborhoods – read about it here: “New Study Demonstrates the Catalytic Impact of the Historic Tax Credit” — article by John Leith-Tetrault in Novogradac & Co.’s Journal of Tax Credits

 

April 2014 “Twinning Historic and New Markets Credits Presents Challenges Under the HTC Revenue Procedure” — article by John Leith-Tetrault in Novogradac Journal of Tax Credits

What does the Revenue Procedure mean for twinned HTC and NMTC deals? Read to find out: “Twinning Historic and New Markets Credits Presents Challenges Under the HTC Revenue Procedure” — article by John Leith-Tetrault in Novogradac & Co.’s Journal of Tax Credits

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Click cover to view full article

Guidance Released on Federal Historic Tax Credit Structures

The Historic Tax Credit Coalition (HTCC) released this announcement after the IRS and Treasury issued guidance related to the Historic Boardwalk Hall decision on December 30, 2013. View the guidance via the link at the end of the press release:

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HTCC logo v2 smallWashington, DC – The Historic Tax Credit Coalition (HTCC) welcomes yesterday’s release of Revenue Procedure 2014-12 from the Internal Revenue Service (IRS) providing guidance to the historic tax credit (HTC)  industry stemming from the August 2012 Third Circuit Court of Appeals decision in Historic Boardwalk Hall LLC v. Commissioner. Starting a year ago, the HTCC had urged the IRS and Treasury to issue this guidance in  order to help re-energize historic preservation projects around the country, and the HTCC worked vigorously with the IRS and Treasury to help get the guidance issued.

“We truly appreciate the Service’s willingness to work with our coalition and the industry as a whole, and we are thankful the IRS has issued this comprehensive revenue procedure in a timely manner” said John Leith-Tetrault, chairman of the HTCC. “When we began this process in earnest last spring, the IRS stated it typically takes 18 months to issue guidance,” Leith-Tetrault said. “In this case we believe the Service recognized the acute need and unintended market consequences of the Historic Boardwalk Hall decision and worked much faster to issue this guidance.”

Beginning in April, the HTCC, the IRS and Treasury held a series of meetings and conference calls aimed at drafting a revenue procedure that would give investors and developers a clear roadmap for compliance. These discussions led to the HTCC’s submission of written guidance suggestions that helped government officials better understand how HTC transactions are done in the market place and what guidance provisions would help restore investor confidence.

“We are pleased that the many features we discussed and wrote about appeared in the Revenue Procedure,” noted Leith-Tetrault, “including:

  • specific recognition of the master-tenant structure, and master-tenant investments in the landlord entity
  • permission to flip the investor’s interest to as low as 5% of its highest amount after the 5-year credit recapture period has elapsed
  • approval of traditional real estate developer guarantees, such as completion, operating deficit and environmental, as well as guarantees related to acts necessary to claim the credit.”

Noted Leith-Tetrault, “Obviously, there is much to digest here, but we are expecting that the historic tax credit industry will be able to get back to closing deals that comply with the rules of the Revenue Procedure.”

Read the HTCC guidance memo here

View the full text of the Revenue Procedure here

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View the full press release here

We Moved!

NTCIC is excited to announce that we have relocated our offices! As of
December 2, 2013 our new address is:

1155 15th St. NW

Suite 300

Washington, DC 20005

also known as “The Madison Building”
Our telephone numbers and email addresses have remained the same.

New Study Shows Tax Credits Key to Revitalization of Ohio’s Downtowns and Main Street Districts

Washington – A new report released today by the National Trust for Historic Preservation and Heritage Ohio announces that the federal historic tax credit has helped spur $958 million in historic rehabilitation work and created over 15,000 jobs in Ohio since 2007. The publication comes as Congress considers reforming the nation’s tax code.

The report finds that the federal historic tax credit has been instrumental in helping owners afford to restore historic structures, many of which were previously vacant and dilapidated. Ohio also has a state historic tax credit that combines with the federal credit, creating an even greater financial incentive to rehabilitate its historic buildings. The result is vibrant, modernized buildings that generate income, sales and property tax, and new enthusiasm in their communities.

“By breathing new life into vacant warehouses, factories, hotels and more, the federal historic tax credit brings new hope and stability to neighborhoods, setting the stage for additional investment,” said Stephanie Meeks, president of the National Trust for Historic Preservation. “This is exactly the type of program we need to keep our country moving forward.”

The report highlighted ten projects of varying size and type, including the former St. Luke’s Hospital in Cleveland, the former Fort Piqua Hotel in Piqua, and the Born Capital Brewery in Columbus. All have created new places to work, live and play within buildings that help define Ohio’s heritage.

“Across Ohio, cities and small town main streets are experiencing redevelopment because of historic tax credits,” said W. Kevin Pape, Board Chair of Heritage Ohio. “The credits leverage private investment in places that matter and harness Ohio’s heritage to drive economic development where it is needed most.”

The full report, Ohio: Creating Jobs, Building Communities, Preserving Heritage, may be downloaded at:http://www.preservationnation.org/take-action/advocacy-center/additional-resources/HTC_Ohio_Pages_FINAL.pdf.

 Contact pr@savingplaces.org or 202-588-6141

New Research Confirms Historic Tax Credit’s Nationwide Economic Impact

New research released today shows that a federal program  facing elimination by Congress has a profound positive impact on our nation’s economy while more than paying for itself.

Produced by Rutgers University and the National Park Service, the Annual Report on the Economic Impact of the Federal Historic Tax Credit for FY 2012 revealed that the federal historic tax credit (HTC) has created 2.3 million jobs, attracted $106 billion in private investment and restored 38,700 historic buildings since its inception more than 35 years ago. In addition, the report reflects that the HTC yields a net benefit to the U.S. Treasury: it has helped generate nearly $26 billion in federal taxes while costing only $20.5 billion in credits allocated.

This research demonstrates the significant and cost-effective economic benefit of reusing vacant hotels, schools, factories and other forgotten historic resources. Developers repeatedly affirm that these rehabilitation projects simply would not be possible without the incentive of the HTC.

“From a geodesic-domed office building in Ohio, to a historic theater in New Orleans, this report offers abundant proof that historic tax credit projects protect the places that make a community special, while fueling the economy and creating good jobs,” said Tom Cassidy, vice president of government relations and policy at the National Trust for Historic Preservation. “For lawmakers taking up tax reform, you simply cannot find fault with the federal historic tax credit.”

Despite the HTC’s winning combination of results and cost-effectiveness, the Senate Finance Committee has vowed sweeping reform of the tax code, and no program is safe. The National Trust for Historic Preservation is joining with its industry partner, the Historic Tax Credit Coalition, and other national, state and local preservation groups to help raise awareness of the importance of the historic tax credit to America’s economy and quality of life. The full report text may be found at http://ntcicfunds.com/rutgers/ and by clicking the image below.

Click on the cover to access the full report

Click on the cover to access the full report

Protect the Historic Tax Credit! New video on how the HTC has benefited Baltimore

Today, you can do something small to help a program that has a big impact on our historic places.

Join our effort to protect and enhance the federal historic tax credit, a program that brings dollars to our historic communities — saving the stories they tell, creating jobs and turning places we live into places we love.

But don’t just take our word for it. Watch this short video on how the historic tax credit enabled the conversion of a vacant tin can factory into affordable housing and collaborative space for educators—saving a vital piece of Baltimore’s historic fabric in the process.

The federal historic tax credit is the type of investment our country needs. If you agree, please sign our pledge to join us in protecting the historic tax credit from tax reform on Capitol Hill. We’ll keep you informed of how together we can keep this credit in communities where it preserves our heritage and grows our economy. Thank you!