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A Fresh Look at Historic Tax Credits

Investing in Federal HTC – a fresh look post TCJA

In today’s low interest rate environment investors are constantly searching for yield and safety. There is new hope. Buried in the December 2017 Tax Cuts and Jobs Act (TCJA), overshadowed by Opportunity Zones legislation, was a hidden gem. That gem was the Federal Historic Tax Credit, commonly called HTC. And in the TCJA’s construction, HTCs were saved from elimination. The TJCA introduced new rules for HTCs, while removing others. Gone was both the pre-1936 construction, ten percent credit and also one-year credit utilization. Untouched was the twenty percent HTC, but that credit was now married to a longer five-year credit utilization. This reshaped the HTC landscape. Read full article HERE.