Pennsylvania has recently established a historical tax credit for qualifying rehabilitation expenditures for commercial buildings, including rental housing, located in historic districts.   In doing so, Pennsylvania joins 29 other states that have already enacted legislation that allows for a credit similar to the popular Federal Historic Preservation Tax Incentives Program. The Pennsylvania Historic Preservation Incentive Act was signed into law on July 2, 2012, and becomes effective July 1, 2013.  The credit encourages both short-term and long-term job creation as these buildings are income-producing in nature.  In addition, property values will increase, which will provide additional revenues for localities through real estate taxes.

The Internal Revenue Service has released Rev. Rul. 2012-21 which contains the LIHTC rates and applicable federal rates for August 2012. The 70% LIHTC rate is 7.36% and the 30% LIHTC rate is 3.15%. Note that for non-federally subsidized new buildings placed in service after July 30, 2008, and before December 31, 2013, the 70% LIHTC rate will not be less than 9%. For historical rates, click here.