Placing a Cap on the Historic Rehabilitation Tax Credit
The Governor’s budget limits annual awards under the historic rehabilitation tax credit to $10 million. Under the Governor’s budget credits are to be awarded on a competitive basis with several criteria, including job creation potential, to determine which applicants receive the credit. The Governor’s budget further requires that credits be repaid in proportion to any shortfall in job creation relative to the amounts claimed in the credit application if actual job creation is deficient within the first five years after receiving the credit. These changes begin with the 2016 tax year.
The League opposes the cap and job creation requirement condition and is working with other stakeholders to amend this provision of the budget. The budget bill also repeals the related credit for non-historic buildings built prior to 1936.