HTC Recapture Study

Historic tax credit (HTC) transactions have experienced very low rates of recapture, according to the “Historic Rehabilitation Tax Credit Recapture Survey,” commissioned by the National Trust for Historic Preservation and produced by Novogradac and Company LLP. The study to determine the frequency and amount of recapture that investors have experienced with the HTC was conducted by surveying of a group of historic tax credit investors that have made significant investments; collectively, the survey’s respondents have invested in more than 50 percent of the HTCs claimed during the past 10 years. Survey respondents report experiencing a historic tax credit recapture rate of less than three-quarters of one percent over the past 10 years. The survey results are further supported by an analysis of the information obtained from the Internal Revenue Service, which reflects an annual historic tax credit recapture rate of 0.07 percent for 2008.

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