California now has a state historic tax Credit
SB 451 authorizes a California state historic tax credit beginning January 1, 2021 with a sunset date of January 1, 2016. The annual program cap will be $50 million with $10 million set aside for residential and small projects. The legislature will have to appropriate the expenditures each year and requires an annual review of the effectiveness of the credit.
• 20% tax credit, which can be paired with the 20% federal historic tax credit
• An additional 5% tax credit for public surplus property, low-income housing, BRAC zones or Transit-Oriented Development areas
• The credit against net tax can be carried forward for eight years.
The California Office of Historic Preservation is tasked with administering the program.
Stay tuned for specifics on the application process.