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California Passes Legislation Approving Long-Awaited State Historic Tax Credits

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In November 2019, California governor Gavin Newsom signed into law Senate Bill 451, which authorizes a new State Historic Tax Credit, providing a supplement to spur historic preservation and development alongside the Federal Historic Tax Credit.  The program, which will begin in 2021, will provide a 20% State Tax Credit against costs incurred during the rehabilitation in accordance with Historic standards administered by the state historic preservation office.  This percentage of cost incentive will increase to 25% for certain types of adaptive reuses, including affordable housing developments.  The initial legislation provides up to $50 million in annual Tax Credit allocation for projects across the state, providing an additional tool for the California government to combat the affordable housing crisis and spur preservation of historic properties.

Clocktower Tax Credits, LLC has strong investor appetitive for the new Historic Credits from our California Credit investor pool, including those with interest in both the State and Federal Historic Credits.  With Clocktower’s expertise in facilitating Historic Tax Credit investments nationwide, we have the ability to help any and every historic development in the Golden State maximize the benefit of using this innovative new financing tool.  For any prospective opportunities seeking California and Federal Historic Tax Credit equity, please contact David Curtis at (978) 440-0742 or DCurtis@ClocktowerTC.com.