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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Real Property - Finance

Date & Time
  • event Date

    Tuesday, March 4, 2025

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

$347.00

This course is $0 with these passes:

CLE
ALL

This CLE course will provide an overview of the Federal Historic Tax Credits (HTC) program. The panel will summarize the HTC program and examine how rehabilitation projects qualify for the HTC, how to finance projects using the HTC, and how the HTC can be combined with other tax credit and subsidy programs.

Faculty

A. Ann Hered
Attorney
Butler Snow

Ms. Hered is an experienced Public Finance attorney with a focus in New Markets Tax Credits and bonds.

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Thane R. Hodson
Attorney
Butler Snow

Mr. Hodson assists clients with structuring new markets tax credits financings, including upper-tier lending arrangements, direct and indirect credit enhancement of lower-tier borrowing arrangements and unique lower-tier equity financing.

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Description

Given the challenges involved in renovating historic buildings, the HTC can provide a vital source of additional financing. Historic restoration projects naturally cost substantially more than newly constructed buildings but must compete equally for commercial success. The HTC can level the playing field.

The HTC provides a 20 percent tax credit for certain costs involved in restoring historic buildings. Only certain buildings qualify for the HTC, and developers are required to adhere to the guidelines of the National Park Service to ensure their restoration plans are HTC-eligible.

The HTC can be monetized by third-party equity investors that provide much needed additional capital to give a restoration project a greater chance of success. The panel will discuss the basics of an HTC investment and the possible structures for channeling the HTC investor's equity into the project. The panel will also address the roles of and issues that arise with bridge and conventional HTC financing arrangements as well as tax-exempt entity participation complications.

The HTC can be further enhanced with additional tax credit financing and other funding sources like low-income housing tax credits and grants. Each program interacts with the HTC differently, and the panel will review the primary issues that can arise when combining various subsidy funding sources with the HTC.

Listen as our authoritative panel discusses the structuring and applications of HTCs.

Outline

  1. Historic Tax Credits
    1. Overview of the HTC
    2. How a building and its rehabilitation qualifies for HTC
    3. HTC-eligible rehabilitation costs
    4. HTC recapture
  2. Financing with the HTC
    1. HTC equity and investment structure
    2. HTC bridge loans
    3. Interplay between HTC and debt financing
    4. Tax-exempt use limitations
  3. Combining the HTC with other tax credit and subsidy programs
    1. State HTC
    2. New Markets Tax Credits
    3. Low-Income Housing Tax Credits
    4. HUD/USDA loans
    5. Grants
    6. Energy Tax Credits and CPACE loans
    7. Opportunity Zone Investment

Benefits

The panel will review these and other key issues:

  • What are the basics of the HTC program?
  • How can a rehabilitation project benefit from a third-party HTC equity investment?
  • How can the HTC be supplemented and combined with other tax credit and subsidy programs?