The Office of the Comptroller of the Currency (OCC) released an updated edition of its 2008 Community Developments Insights report entitled Historic Tax Credits: Bringing New Life to Older Communities. This Insights report provides an overview of Historic Rehabilitation Tax Credits, why they might be of interest to other banks, and associated risks or regulatory considerations.
For more than 35 years, the federal Historic Tax Credit program has helped revitalize communities by encouraging the flow of $109 billion in private funds to facilitate the rehabilitation of historic buildings. These investments have facilitated the redevelopment of hundreds of thousands of residential and commercial properties, including a substantial number of low- and moderate-income housing rental units.
This updated Insights report
- discusses the methods used by banks and federal savings associations (FSA) to structure transactions and use the tax credits effectively;
- highlights regulatory changes since the previous Historic Tax Credits Insights was published in 2008;
- includes a discussion on IRS Revenue Procedure 2014-12;
- discusses the public welfare investment authority, under which national banks and FSAs may make Historic Tax Credit investments;
- outlines how the Historic Tax Credit activities of banks and FSAs are evaluated for Community Reinvestment Act purposes.
The OCC Community Affairs Tax Credits Resource Directory provides additional information on other tax credit investment programs.