Historic Tax Credits

  • Holland & Knight has advised clients on hundreds of historic rehabilitation tax credit projects.
  • Attorneys in our Historic Tax Credits Practice have extensive experience in all aspects of historic rehabilitation transactions, including structuring, documentation and tax advice.
  • Our lawyers devise creative deal structures and investment strategies for projects utilizing historic rehabilitation and other tax credits, which are vital tools for historic preservation, economic revitalization and commercial redevelopment in communities throughout the U.S.

Holland & Knight has counseled clients on the use of historic tax credits since the inception of the Historic Tax Credit program in 1976. We have rendered advice on projects of all kinds that benefit from private-sector investment designed to revitalize communities and provide jobs across the country. Our attorneys have facilitated the investment of billions of dollars in historic rehabilitation and redevelopment projects for commercial, residential and other uses. Clients benefit from our expansive knowledge of the federal Historic Tax Credit program, as well as state historic preservation tax credit programs, U.S. Department of the Interior and National Park Service rules and regulations, and other tax credit programs, such as the Low-Income Housing Tax Credit (LIHTC) and New Markets Tax Credit (NMTC) programs. Our firm will continue to advocate for the retention of the Historic Tax Credit and other tax credit programs as Congress considers substantial future changes to the tax laws.

Leveraging Tax Credit Knowledge and IRS Relationships

In the course of our many years of involvement in historic tax credit transactions and through our position as an industry leader, we have developed relationships with representatives of both the Internal Revenue Service (IRS) and the U.S. Department of the Treasury that enable us to predict these agencies' positions on important tax issues and to request and interpret guidance on uncertain areas of the law.

For example, working with and through the Historic Tax Credit Coalition, our attorneys were heavily involved in the negotiation and promulgation of the safe harbor guidelines created in Revenue Procedure 2014-12, as well as the Treasury regulations issued under Section 50(d) of the Internal Revenue Code addressing the proper tax characterization of "50(d) income" in Historic Tax Credit master lease transactions.

Our established relationships with both the IRS and Treasury provide a continuing and useful resource for our clients in the historic tax credit industry.

Broad Range of Historic Tax Credit Projects and Clients

We have substantial experience with a wide range of projects and clients. Our historic tax credit clients include developers, syndicators, lenders and investors engaged or participating in the redevelopment and rehabilitation of properties throughout the U.S.

Our representative matters encompass entertainment venues, office buildings, retail complexes, industrial mills, hotels, affordable-housing developments, luxury apartments, health centers, museums and stadiums.

Our tax and real estate attorneys handle all aspects of historic tax credit projects, including transactional and structuring advice, tax advice, the issuance of tax opinions, advice concerning development and land-use issues, compliance with government regulations and advice relating to conventional financing matters. We review projects for compliance with the Department of the Interior's Standards for Rehabilitation and facilitate communication with the National Park Service, state historic preservation offices and historic consultants. We manage communications among multimember development, investment and financing teams.

In addition, we often counsel clients on how to combine the historic tax credit with similar state credits, as well as with LIHTC, NMTC and energy tax credits. Drawing on the extensive knowledge of Holland & Knight tax lawyers in our offices across the U.S., we analyze and recommend the best structures for transactions, prepare documentation for investors and syndicators, render tax advice and opinions, advise on compliance with federal securities laws and work closely with accountants to leverage available tax benefits.

We have substantial experience in structuring transactions involving tax-exempt organizations and governmental agencies to comply with the tax-exempt use restrictions contained in Sections 50 and 168(h) of the Internal Revenue Code.

Our historic tax credit attorneys review financing documentation for lenders and investors, negotiate intercreditor agreements and provide advice on exit strategies. We also help clients determine whether buildings are eligible for tax credits, and guide them through the process of obtaining required federal and state certification and coordinating with lenders, equity investors and governmental agencies during all stages of the redevelopment project.

Historic Tax Credit Thought Leadership

With a broad understanding and commitment to advancing all tax credit programs and other incentives for housing, community redevelopment and the rehabilitation of historic properties, we often are called on to speak to industry groups. Our tax attorneys are active members of such organizations as the National Trust for Historic Preservation, the National Housing & Rehabilitation Association, the Historic Tax Credit Coalition and the Historic Preservation Development Council.