With the passage of HB 1729, Mississippi will continue to have a robust historic tax credit program, which will hopefully help with economic recovery in this difficult time.
McLaughlin, PC, has advocated for the reauthorization of this historic tax credit program through the past two sessions of the Mississippi Legislature, and we’re thrilled to see it pass this legislative session.
“This is an economic incentive program for the state of Mississippi,” said Lolly Rash, executive director of the Mississippi Heritage Trust. According to the MHT’s materials, the 25% state income tax credit, when measured from 2006 to 2018, has accounted for over $297 million in construction expenditures, 3,119 construction jobs and 3,236 permanent jobs.
After hurricane Katrina, Mississippi passed its first major historic tax credits bill, which created a pool of $60 million in tax credits that developers and homeowners could use to offset the costs in renovating historic buildings and homes.
The shining example of the utility of the historic tax credit is the King Edward building in downtown Jackson, which developers renovated from a hulking, dilapidated shell to an attractive downtown hotel and residential complex. Many other projects have used the $120 million in tax credits that lawmakers have allocated from 2006 to the present.
In the 2016 extension of historic tax credit legislation, lawmakers made some changes, including a $12 million annual cap in program credits and the removal of residential homes as qualifying projects. The bill the governor signed this week does not remove those limitations, but adds $60 million to the state tax credit program and extends the program to 2030. This new allocation should be a boon for developers of historical buildings and, by extension, downtowns and treasured landmarks across Mississippi.
If you are a developer or investor interested in utilizing state and federal historic tax credits to rehabilitate a historic building, McLaughlin, PC is here to answer your questions. Please call us at 601-487-4550 or contact us online.
[photo by Michael Barera via Wikicommons]