From Preservation Action:

State legislative sessions are underway in states across the country. In many places bills to establish and expand state level historic tax credits have been introduced.

Last month, legislation (H.B 2275) was introduced in the Arizona House that would establish a 20% state historic tax credit with a 5% bonus for affordable housing projects. Under the legislation, the program would be capped at $30 million annually.

A bill was recently introduced in the Hawaii Senate that would re-establish that state's historic tax credit which previously expired at the end of December. S.B 1462 would create a 30% historic tax credit that would be capped at $1 million annually, which is identical to the previous credit.

Legislation was introduced in Illinois that would expand the state's historic tax credit. S.B 240 would expand the state's current $25 million annual cap to $75 million annually starting in 2026 and running through 2028. Illinois currently provides a 25% state historic tax credit and has a per project cap of $3 million.

In Maine, legislation was introduced last week that would encourage the use of the state's historic tax credit in affordable housing projects. Maine currently provides a 20-25% historic tax credit, depending if the project receives the federal Historic Tax Credit. L.D 435 would increase the credit from 25% to 35% on certified affordable housing properties, with an additional boost to 45% for projects that do not receive the federal Historic Tax Credit. The bill would also raises the per transaction cap from $5 million to $10 million.