Kentucky Congress overrides veto to expand the Historic Preservation Tax Credit
Published April 28, 2022
On April 13, Kentucky Congress overrode the once vetoed House Bill 8 (HB 8), expanding the Kentucky Historic Preservation Tax Credit, increasing the maximum permissible tax credit for both owner-occupied residential properties and commercial properties.
The veto was overridden by a vote of 72-25 in the House and 28-8-1 in the Senate. HB 8 has been enrolled and enacted as of April 14, 2022, and is now law.
Here’s what you need to know:
- HB 8 increases the maximum permissible tax credit for owner-occupied residential properties from $60,000 to $120,000.
- HB 8 increases the maximum permissible tax credit for properties that are not owner-occupied residential, including eligible historic properties, from $400,000 to $10 million.
- HB 8 addresses limitations around the transferability of tax credits, confirming taxpayers can elect to transfer or assign tax credits to financial institutions subject to the bank franchise tax, corporation income tax, and limited liability entity tax.
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For more information about the Kentucky Historic Preservation Tax Credit, please reach out to your trusted MCM relationship contact.