The credit has a statewide cap of $50 million per year with $2 million set aside for residences (credit: Sutter House).
SACRAMENTO—Governor Gavin Newsom recently signed into law a bill to create a state historic tax credit/HTC. SB 451 creates a HTC for 20% of qualified rehabilitation expenditures/QREs, with an increase to 25% of QREs that meet certain criteria, including affordable housing.
The credit will be in effect from 2021 through 2025, although it will require the legislature to provide for the expenditure each year in appropriations and an annual review of the effectiveness of the credit. The credit has a statewide cap of $50 million per calendar year with a $2 million set aside for residences and an $8 million set aside for developments with QREs of $1 million or less.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
