SB 451 Provides 20% of Qualified Rehabilitation Expenditures
Gavin Newsom recently signed into law a bill to create a state historic tax credit of 20% of qualified rehabilitation expenditures, with an increase to 25% of QREs that meet certain criteria, i.e. affordable housing.
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.