Missouri State Historic Tax Credit Impact on Rehabilitation Projects

In July 2024, Missouri Governor, Mike Parson signed legislation, H.B. 2062, under the “Missouri Historic, Rural Revitalization and Regulatory Streamlining Act” to provide bonus State Historic Tax Credit (HTC) for historic preservation. This went into effect August 28, 2024. 

Through the changes in legislation, the state hopes to increase the amount of affordable housing and incentivize the preservation and rehabilitation of Missouri’s historic structures. 

Missouri’s Enhanced Historic Preservation Incentives 

These changes introduced several revisions, notably raising the HTC from 25% to 35% for properties located in cities with less than 400,000 residents and in underserved, rural areas – which are defined as counties outside Kansas City and St. Louis. 

The timeframe for starting rehabilitation projects has been extended from nine months to 24 months, and, for single-resource certified historic structures larger than one million gross square feet with a Part I approval of a federal application prior to January 1, 2024, HTCs can now be distributed over a six-year period under certain conditions. 

State tax credits can also now be carried back as far as 3 years and have a carry forward of ten years, according to the Missouri Department of Economic Development. 

A state tax credit equal to 25% of the total qualified rehabilitation expenditures (QREs) for the eligible property is now included in the incentives. This tax credit can additionally be applied to Chapter 143 (income tax, excluding withholding tax), Chapter 148, Bank Tax, Insurance Premium Tax, and other Financial Institution Tax. 

Under the new legislation, nonprofit organizations are eligible to receive HTCs, which were previously limited to for-profit entities — thus, broadening the pool of eligible participants. 

By making investing in historic properties more affordable, the state expects the changes in legislation to greatly impact affordable housing and multifamily rental investors and developers and increase historic preservation projects. 

Claim Your Historic Tax Credit Now 

If you’re ready to take advantage of State Historic Tax Credits on a rehabilitation project but don’t know where to start, EisnerAmper professionals can help guide your project forward. Contact us today to discuss how we can support you.