IMPORTANT - Historic Rehabilitation Tax Credits in Jeopardy!!!

[TheArtist]

Here's the latest from the Preservation folks in the know...(although I couldn't find anything on SB 723 below...so not sure if that's the right number for the trailer bill)

The last news I've heard is that the trailer bill is stuck in committee and has not yet made it to the floor.  

I am told that anyone with a finance or banking background should call Rep Ken Miller, Chairman of the House Appropriations Committee, ASAP and speak in support of the trailer bill.  405-557-7360.  No emails, just phone calls, is the word on the street.

Trailer bill supposedly will be SB 723.  I believe it will change the restrictions from a two-year moratorium to a one-year deferrment of the tax credits.  

Keep your fingers crossed.  And get your bankers friends on the phone!

Why even have a deferrment?  How would a deferrment help the state budget or anything?

[sgrizzle]

Why even have a deferrment?  How would a deferrment help the state budget or anything?

If you don't pay anything for a year, it helps greatly.

Just means that the next year they would be paying out for 2 years.

[rdj]

What I heard tonight was that they will have a "moratorium" for two years.  The credits will be deferred and can be "banked."  So you can use them in the years once the moratorium is lifted.

[SXSW]

I haven't heard, what happened today? 

[pmcalk]

According to Preservation Oklahoma (http://preservationok.org/Help_Save_the_Tax_Credit.html), the trailer bill passed.

[swampee]

The politicians alone make me want to leave this state. Always think the long term when proposing something like this.

[SXSW]

According to Preservation Oklahoma (http://preservationok.org/Help_Save_the_Tax_Credit.html), the trailer bill passed.

The trailer bill to save the tax credits passed.  Are they not being deferred then?

[Townsend]

I read that Henry signed the bill.

The article wasn't written well.

What has happened?

[SXSW]

It is my understanding that the credits are still available but won't actually pay out for 2 years, when the moratorium is lifted.  Please correct me if I'm wrong.

[TheLofts@120]

SXSW - Thats my understanding as well.  The trailer bill did pass allowing tax credits to be earned, however, use must be deferred for two years.  The big question that now comes up is:  can banks be convinced to accept deferred tax credits as equity in development projects or will this hurt the ability of developers looking for equity help and curtail development anyway?  We will have to see how banks respond.

[cynical]

How long before Jerry Fent files a lawsuit against the state alleging that the deferment of these tax credits beyond the end of the current fiscal year violates Article X, Sections 23, 24, and 25 of the Oklahoma Constitution?  The deferment is the functional equivalent of borrowing from the entities that would receive the credits. The provisions cited above are fairly specific about how and under what circumstances obligations can be incurred beyond the fiscal year.  As far as I can tell, this doesn't qualify.

[heironymouspasparagus]

Where did all our Libertarians suddenly disappear to???

Oh, I see it;  

"revenue generating projects that also bring increased job opportunities that further increase the sales tax revenues and at the same time, increase ad-valorem taxes through increased property values."

I missed the catch phrases the first read through.