Redevelopment of historic mill properties in Connecticut has been a successful model for providing desirable housing to a variety of demographics from Millennials to retirees, but limits to the state’s historic rehabilitation tax credit program, may limit future development. As of September, the end of the first quarter of the fiscal year, all of the credits available for this year have already been claimed. This is much sooner than last year, when credits were available into the fourth quarter. The tax credit program can be critical to funding these types of projects, providing a layer of the complex “lasagna financing” often pieced together to move forward with the complicated rehabilitation of historic properties.
Advocates, including the CT Main Street Center, have hopes of raising the current cap of $31.7 million per year, of tax credits, but the current financial environment in the state legislature may make that a tough sell.