Historic Rehabilitation Tax Credit IN West Virginia
04/14/2025: New HTC-GO Bill Introduced in Senate and House
A new version of the Historic Tax Credit Growth and Opportunity Act (HTC-GO) was reintroduced by Rep. Darin LaHood (R-IL) and Rep. Tom Suozzi (D-NY) in the U.S. House and Sen. Bill Cassidy (R-LA) and Sen. Mark Warner (D-VA) in the U.S. Senate. The bill would return to a one-year delivery of the historic tax credit (HTC). Other new provisions would specifically encourage smaller and rural projects with a boost in credit, and a new allowance for transferring credits.
A new version of the Historic Tax Credit Growth and Opportunity Act (HTC-GO) was reintroduced by Rep. Darin LaHood (R-IL) and Rep. Tom Suozzi (D-NY) in the U.S. House and Sen. Bill Cassidy (R-LA) and Sen. Mark Warner (D-VA) in the U.S. Senate. The bill would return to a one-year delivery of the historic tax credit (HTC). Other new provisions would specifically encourage smaller and rural projects with a boost in credit, and a new allowance for transferring credits.
- Returns to a 1-year delivery of Historic Tax Credits for all projects
- Since 2017, the 20% tax credit has been delivered over 5-years (4% per year), this provision will return delivery of the HTC to 1-year.
- Lowers the Substantial Rehab Test from 100% to 50% of a building’s basis
- Lowers the substantial rehabilitation threshold, making more projects eligible to use the HTC.
- Eliminates the HTC Basis Adjustment Requirement
- Eliminates the requirement that the amount of the HTC must be deducted from a building’s basis (the property’s cost for tax purposes), increasing the value of the HTC and making it much easier to pair with the federal Low-Income Housing Tax Credit.
- Modifies Tax Exempt Use Rules
- Makes the HTC easier to use by nonprofits such as community health centers, local arts centers, affordable housing, homeless services, museums, theaters, and others by eliminating Tax Code restrictions that make it challenging for nonprofits to partner with developers.
- Increases the credit for smaller projects:
- Projects below $3.75 million will receive a 30% credit.
- Rural projects below $5 million will receive a 30% credit. (Rural Definition: Cities/towns with populations less than 50,000 and not contiguous and adjacent to cities/towns of 50,000 in population).
- All small projects are eligible for direct transfer, without need of a partnership-style investment.
02/25/2025: Senators Capito, Warner Reintroduce Rural Historic Tax Credit Improvement Act & Representatives Carey, Horsford Introduce House Version
Sen. Shelley Moore Capito (R-WV) and Sen. Mark Warner (D-VA) recently introduced the Rural Historic Tax Credit Improvement Act (S. 631, H.R. 1454) in the Senate. This bill would makes several changes to the Historic Tax Credit (HTC) aimed at streamlining processes, reducing cost burdens to rural property owners and developers, and provide affordable housing incentives. Rep. Mike Carey (R-OH) and Rep. Steven Horsford (D-NV) introduced companion legislation in the House.
This bill would increase the HTC from 20% to 30% for projects in rural areas, further bump up the credit to 40% for affordable housing creation, allow the credit to be taken in the first year for small and rural projects, and would eliminate the basis adjustment. All of these changes would help improve the HTC and make it more beneficial for smaller and rural projects, where projects are often less financially viable.
Sen. Shelley Moore Capito (R-WV) and Sen. Mark Warner (D-VA) recently introduced the Rural Historic Tax Credit Improvement Act (S. 631, H.R. 1454) in the Senate. This bill would makes several changes to the Historic Tax Credit (HTC) aimed at streamlining processes, reducing cost burdens to rural property owners and developers, and provide affordable housing incentives. Rep. Mike Carey (R-OH) and Rep. Steven Horsford (D-NV) introduced companion legislation in the House.
This bill would increase the HTC from 20% to 30% for projects in rural areas, further bump up the credit to 40% for affordable housing creation, allow the credit to be taken in the first year for small and rural projects, and would eliminate the basis adjustment. All of these changes would help improve the HTC and make it more beneficial for smaller and rural projects, where projects are often less financially viable.
12/20/2024: Capito, Warner Introduce the Rural Historic Tax Credit Improvement Act - Bill streamlines processes, reduces cost-burdens to rural home owners and small developers, and provides affordable housing incentives for historic tax credit-eligible projects.
“Being a rural state shouldn’t mean losing out on private investment incentives like tax credits to help us preserve our communities’ history and revitalize local economies,” Senator Capito said. “I have enjoyed working with the dedicated group of West Virginians who brought this issue to my attention and who provided important perspectives during the creation of this legislation. The Rural Historic Tax Credit Improvement Act will help level the playing field for communities in West Virginia by attracting investment for economic expansion and additional housing supply.”
Currently, many historic tax projects are not economically viable in small and rural areas, giving a disproportionate advantage of the credit to large urban developments. The costs associated with the credit as-is severely limits rural areas, and especially largely rural states like West Virginia, from being able to use the credit to rehabilitate and revitalize historic properties.
Through improvements to the credit included in the Rural Historic Tax Credit Improvement Act, rural Historic Tax Credit projects will be more financially feasible and will result in a higher number of these projects being completed in rural areas and states.
The Rural Historic Tax Credit Improvement Act:
This bill is supported by the Preservation Alliance of West Virginia, The Historic Tax Credit Coalition, Main Street America, and The National Trust for Historic Preservation.
Learn more at https://www.capito.senate.gov/news/press-releases/capito-warner-introduce-the-rural-historic-tax-credit-improvement-act www.capito.senate.gov/news/press-releases/capito-warner-introduce-the-rural-historic-tax-credit-improvement-ac
“Being a rural state shouldn’t mean losing out on private investment incentives like tax credits to help us preserve our communities’ history and revitalize local economies,” Senator Capito said. “I have enjoyed working with the dedicated group of West Virginians who brought this issue to my attention and who provided important perspectives during the creation of this legislation. The Rural Historic Tax Credit Improvement Act will help level the playing field for communities in West Virginia by attracting investment for economic expansion and additional housing supply.”
Currently, many historic tax projects are not economically viable in small and rural areas, giving a disproportionate advantage of the credit to large urban developments. The costs associated with the credit as-is severely limits rural areas, and especially largely rural states like West Virginia, from being able to use the credit to rehabilitate and revitalize historic properties.
Through improvements to the credit included in the Rural Historic Tax Credit Improvement Act, rural Historic Tax Credit projects will be more financially feasible and will result in a higher number of these projects being completed in rural areas and states.
The Rural Historic Tax Credit Improvement Act:
- Makes historic tax credit projects in rural areas eligible for an increased credit from the current 20% to 30%.
- Includes an additional increase in the credit to 40% for affordable housing creation.
- Allows small rural projects to claim the credit in the first year of use.
- Allows transferability of the credit to a third-party.
- Eliminates basis adjustment to simplify credit transaction.
This bill is supported by the Preservation Alliance of West Virginia, The Historic Tax Credit Coalition, Main Street America, and The National Trust for Historic Preservation.
Learn more at https://www.capito.senate.gov/news/press-releases/capito-warner-introduce-the-rural-historic-tax-credit-improvement-act www.capito.senate.gov/news/press-releases/capito-warner-introduce-the-rural-historic-tax-credit-improvement-ac
03/16/2022: West Virginia Legislature Passes Bill to Improve State Historic Tax Credit
Last week, the West Virginia Legislature passed legislation that improves the 25% State Historic Tax Credit (HTC) in West Virginia, and it is now on its way to the Governor's desk.
House Bill 4568 (known as Phased Rehabilitations of Certified Historic Structures) achieves multiple goals such as:
Last week, the West Virginia Legislature passed legislation that improves the 25% State Historic Tax Credit (HTC) in West Virginia, and it is now on its way to the Governor's desk.
House Bill 4568 (known as Phased Rehabilitations of Certified Historic Structures) achieves multiple goals such as:
- Allowing the state HTC to be taken in phases, which is known as “phased rehabilitations”,
- Allowing the recapture of HTCs,
- Requiring the issuance of HTC certificates based on issuance of Phase Advisory Determination, bringing the state program in line with the federal HTC program, and
- Eliminating all caps to the state historic tax credit and associated rules, guarantees, and restrictions related to caps and allocations. These were outlined in the original 2017 legislation that increased the tax credit from 10% to 25% and included:
- The per project cap of $10 million for a certified rehabilitation project;
- The annual cumulative cap of $30 million in tax credits issued per fiscal year;
- The “smaller project” allocation that was originally intended to ensure smaller projects (those under $500,000) received tax credits
