Missouri's HB 2062 Set to Transform Historic Tax Credit Program

June 11, 2024
Fact Checked

Missouri’s historic tax credit (HTC) program is on the brink of a major overhaul with the passage of HB 2062. This groundbreaking legislation aims to streamline the application process, increase credit allocations, and expand eligibility, making it easier for property owners to preserve and rehabilitate historic buildings across the state.

One of the most significant changes introduced by HB 2062 is establishing a year-round application cycle, replacing the previous competitive round system. This move is expected to provide more flexibility and opportunities for property owners to apply for HTCs. Additionally, the bill mandates timely reviews by the State Historic Preservation Office (SHPO) within 60 days and introduces an appeals process for denied applications, ensuring a more transparent and efficient system.

tax credit transfer

Under the new legislation, taxpayers can expect to receive their credits sooner, with 75% issued within 75 days and the remainder within 120 days. However, it’s important to note that excess credits may need to be repaid.

HB 2062 also brings exciting changes to the tax credit structure itself. The HTC has been increased from 25% to 35% in eligible counties, and pre-application costs now count toward the credit. Large projects over one million square feet can spread their allocation over six years, while taxpayers can receive additional credits for approved scope changes. Credits will be issued in phases, with 80% upon approval of each phase.

The bill introduces several project-related changes, including the ability to start projects before national registration and the acceptance of proof of eligibility as part of a federal application or draft nomination. Not-for-profits are now eligible for HTCs, and historic schools and theaters will be subject to evaluation standards. The rehabilitation timeframe has also been extended to 24 months.

Taxpayers should be aware of new requirements, such as notifying the SHPO of loss of site control within ten days and the option to forfeit approved credits at any time. The timeframe for submitting financial evidence has been extended to 120 days.

The passage of HB 2062 marks a significant milestone for Missouri’s historic preservation efforts. By expanding access to HTCs for not-for-profits and increasing credit allocations, the state aims to encourage more property owners to invest in the rehabilitation of historic buildings. The bill now awaits Governor Parson’s signature for final enactment, ushering in a new era for Missouri’s HTC program.

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