Tax Credit program gets legislative support

Senator Tony Vargas of Omaha introduced LB194 to renew and update the Nebraska Historic Tax Credit (NHTC) program. Introduced in 2015 as part of the Nebraska Job Creation and Main Street Redevelopment Act, the NHTC program provides a 20% tax credits for property owners who rehabilitate historic buildings while maintaining their historic integrity. NHTC projects, which have included low-income housing, courthouses, and downtown areas seeking revitalization, have had a tremendous impact on our local economy and workforce.

According to an economic impact report produced by the University of Nebraska Bureau of Business Research, between 2015 and 2019, the NHTC had a tremendous boon on the state economy. During that four year period, the NHTC had a combined economic impact of $206.9 million, supported 2,755 jobs and generated $8.6 million in state and local taxes.

Some of the proposed changes to the NHTC in LB194 includes;

• Eliminating the program sunset on December 31, 2022 and keeping it in perpetuity.

• Allowing single family residences to apply.

• Lowering the total financial cost from $25,000 to $5,000 in order to be eligible to apply.

• Raising the amount of credit from 20% to 25% for projects in Omaha and Lincoln and 30% everywhere else.

• Raising the per project cap from $1 million to $2 million. However, the annual cap allocated to the program will remain at $15 million.

At the time of posting, LB 194 has been introduced to the Revenue Committee of the Legislature for review on January 12, 2021. PAL will continue to follow the path of legislation and keep the public informed.