Invest in Our Federal Historic Rehabilitation Tax Credits

Federal Historic Rehabilitation Tax Credit

  • Most developers cannot benefit from the use of the federal HTC. As a result, taxpayers can, in essence, “acquire” the credits from the developer. The HTC, simply put, is a form of additional project capital.
  • Provides a tax credit equal to 20% of eligible rehabilitation expenditures.
  • The Federal HTC is a “one-year” credit that becomes available in the year in which the project is placed in service.
  • The Federal HTC can generally offset up to 75% of current year tax liability. Excess credits can be carried back one year and carried forward for 20 years.
  • Tax savings result in a lower effective tax rate and permanent GAAP earnings.
  • Recapture, or partial recapture, is triggered if a project ceases operations, or if there is a change of ownership, within a five-year window after being placed-in-service. Insurance can be acquired to cover recapture risk.
  • Low Risk: US Trust for Historic Preservation’s latest “Survey on Historic Credit Recapture; 2002-2012” quantified credit recapture risk at 0.73% of tax credits claimed.
  • Creates immediate GAAP permanent gain.
  • IRR and net benefit is significant, typically 15 to 25%, with substantial ITC and depreciation benefits.
  • Five-year step recapture.
For more information, contact Peter Rourk

FEATURED PROJECTS

0

TOTAL Projects

0

SYNDICATED Tax Credits

0

ENERGY Production

0

AFFORDABLE HOUSING Units Created