From Preservation Action:
This week, the Internal Revenue Service (IRS) granted an extension giving Historic Tax Credit (HTC) applicants additional time to fulfill necessary requirements, due to the COVID-19 pandemic. This provides relief and is welcome news for HTC projects across the country.The IRS notice extends the substantial rehabilitation test deadlines to March 31, 2021. Projects have to meet a 24 month and 60 month statutory deadline to determine if rehabilitation work is sufficient to qualify for the tax credit. For many projects,work stoppages and social distancing requirements, are jeopardizing their ability to meet those deadlines.
The IRS announcement came in response to a bipartisan and bicameral letter from Representatives Brian Higgins (D-NY), Earl Blumenauer (D-OR), Terri Sewell (D-AL), Darin LaHood (R-IL), Mike Kelly (R-PA), and Mike Turner (R-OH) and Senators Bill Cassidy (R-LA), Ben Cardin (D-MD), and Susan Collins (R-ME), requesting the extension. In the letter they talked about issues HTC projects were facing as a result of the pandemic. They went on cite the success of the Historic Tax Credit program, saying:
"The credit has attracted more than $130 billion in private investment, created more than 2.4 million jobs, and rehabilitated more than 44,000 buildings. HTC projects revitalize communities, spur long-term economic growth, and return more money to the Treasury than the cost of the credit - $1.20 in tax revenue for every dollar invested."
Thank you to these members of Congress for their leadership and strong support of the Historic Tax Credit!
Read the full letter and IRS notice to learn more.
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