Credit Reservation Reminder.
The Department of Culture, Recreation and Tourism is reminding all applicants who have submitted State Commercial Part 2 tax credit applications for a historic rehabilitation project on or after January 1, 2021, of these three essential pieces of information:
1. If you are interested in continuing the application process for your State Commercial Tax Credit project, you must submit the attached Tax Credit Reservation Form by Friday, December 30, 2022, to reserve your tax credits for calendar year 2022.
2. The Louisiana Department of Revenue may adopt rules or issue Revenue Information Bulletins in reference to the awarding of state commercial tax credits and their entry in the Tax Credit Registry and may not issue credits in excess of an existing reservation.
3. See the Tax Incentives tab for all State Commercial Tax Credit Application forms, Tax Credit Reservation forms, the currently available amount of State Commercial tax credit reservations, and all guidelines and instructions.
New Federal Historic Rehabilitation Tax Credit application forms issued.
Technical Preservation Services, NPS, issued revised Historic Preservation Certification Application forms today, January 27, 2021. Each form is labeled "Rev. 2019" in the top left corner. The forms work on both PCs and Macs.
The forms are online at Historic Preservation Certification Application—Technical Preservation Services, National Park Service. You must follow the instructions on that page to download the forms successfully.
There are no substantive changes to the forms. There are minor wording changes in the information requested for phased projects in Section 2-Project Data of the Part 2 cover sheet that users should review.
As of March 1, 2021, all certification applications received in State Historic Preservation Offices must use the 2019 forms. The cover sheet of each part must be the NPS-provided 2019 form and must bear the applicant’s original signature. As in the past, applicants and consultants who have developed their own versions of the narrative pages that follow the cover sheets may continue to use their versions.
The State Commercial Tax Credit Progran sunset date has been extended through December 31, 2025.
For State Commercial Part 2 applications received by the Department of Culture, Recreation and Tourism on or after January 1, 2021, the maximum aggregate total of tax credits may be reserved by all taxpayers shall not exceed $125 million annually.
The Department of Culture, Recreation and Toursim will be working with the Louisiana Department of Revenue to develop regulations pursuant to this change.
TAX CUTS AND JOBS ACT: Changes to the Federal 20% Historic Rehabilitation Tax Credit Program and the Federal 10% Rehabilitation Credit for Non-historic Buildings
On December 22, 2017, Public Law No: 115-97 (Pub. L. 115-97) was signed and enacted, amending the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. Pub. L. 115-97 (Sec. 13402) modifies the 20% Historic Rehabilitation Tax Credit as well as provides certain transition rules. These and other changes to the Internal Revenue Code may affect a taxpayer's ability to use of the 20% Historic Tax Credit. Pub. L. 115-97 also repeals the 10% Rehabilitation Tax Credit for non-historic buildings. The text of Pub. L. 115-97 is available at www.congress.gov.
Applicants requesting historic preservation certifications by the National Park Service as well as others interested in the use of these tax credits are strongly advised to consult an accountant, tax attorney, or other professional tax adviser, legal counsel, or the Internal Revenue Service regarding the changes to the Internal Revenue Code related to Pub. L. 115-97.
The State Residential Tax Credit Program expired December 31, 2017
The State Commercial Tax Credit Program reduces from 25% to 20% effective January 1, 2018
The amount of the credit shall equal 25% of the eligible costs and expenses of the rehabilitation incurred prior to January 1, 2018, regardless of the year in which the property is placed in service. The amount of the credit shall equal 20% of the eligible costs and expenses of the rehabilitation incurred on or after January 1, 2018, and before January 1, 2022, regardless of the year in which the property is placed in service. No credit is authorized pursuant to this Section for expenses incurred on or after January 1, 2022.
For more information, please visit The State Commercial Tax Credit Program homepage.
