Deferral, not a Moratorium
Historic tax credits will be deferred for two years, but won’t be canceled out (assuming this gets the governor’s signature) I’m sure there are a lot of historic building developers very, very relieved tonight.
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Thank you for your thorough and timely coverage of this issue. Once again, you nailed the issue and stayed with it until you got answers. Great job!
Jill, the implication is we will see some projects slowed, but those who already have projects in progress will get the tax credits they were promised when they started and won’t face potential bankruptcy over yanked funding. I’ll be writing more about this next week.
Steve delivered as promised:
“Instead, with just an hour left before the Legislature convened Friday, the House and Senate approved changes to historic tax credits that changed the moratorium to a two-year deferral. The change allows developers to still recoup the tax credits — though with a two-year delay.”
captcha: slowdown wearier
So what is the implication of this? With a deferral, will people wait for new projects until the two years have passed? I’m not really sure how this differs from a moratorium, except perhaps one would be unsure of whether the tax credit would be reinstituted at the end of the moratorium. I would love to see an explanation of how this works and how it will affect projects that haven’t been started yet.