From Historic Wins to Housing Headwinds: Tax Credits in the Spotlight

This week on The Tax Credit Talk, hosts Hallie James and Parker An spotlight big moves in historic, housing, and new markets tax credits—and explore how these targeted programs are trying to push against broader economic turbulence.

From Wisconsin’s push to fast-track historic rehab projects to Maine’s massive NMTC expansion, the latest legislative wins show states are doubling down on strategies that keep capital local and projects moving. But as HUD invests in tribal housing and LIHTC reforms unlock over a million new homes, the shadow of a sluggish housing market still looms large.

Whether you’re navigating HTC claims, structuring NMTC deals, or building affordable housing in a tough market, this episode breaks down what’s changing—and what’s next.

What We Covered:

🏛️ Wisconsin’s Historic Tax Credit Overhaul
Bill AB375 would allow developers to claim the full state HTC in one year rather than over five, eliminate the need for federal approval when only claiming the state credit, and tweak credit caps within a 10-year window. The result? Lower financing costs and faster access for developers looking to revitalize aging buildings.

🏛️ Ohio Opens Applications for Up to $5M per Project
Ohio’s Historic Preservation Tax Credit program is accepting applications through September 30, with award announcements expected by December 2025. The program continues to drive funding into urban revitalization and preservation projects across the state.

💼 Maine Expands NMTC Allocation by $250 Million
Governor Janet Mills signed LD 1217, authorizing a major expansion to the state’s New Markets Tax Credit program. The bill sets a $20 million cap per taxpayer and requires CDEs to be based in Maine—ensuring capital stays rooted in local communities.

🏘️ Affordable Housing Credit Improvements Poised to Deliver 1.2M Homes
The Affordable Housing Credit Improvement Act permanently increases the 9% LIHTC and lowers the bond financing threshold from 50% to 25%. These changes are expected to dramatically expand eligibility and finance over 1.2 million affordable homes in the next decade.

🏘️ HUD Delivers $173M in Grants to Tribal Communities
HUD awarded $173.3 million through the IHBG and ICDBG programs to 234 tribal communities for housing, infrastructure, and essential services—demonstrating a continued federal commitment to underserved areas.

📉 Goldman Sachs Projects Housing Will Stay the Weakest Sector in H2 2025
Despite all the momentum in credits and grants, Goldman Sachs forecasts that housing will remain the softest part of the economy through the end of the year, citing persistent high prices and limited inventory.

Key Takeaways:

• States are making smart, strategic moves to streamline access to credits and localize impact.
• LIHTC reforms and HUD grants are driving real housing development—but against a challenging market backdrop.
• Programs like NMTC and HTC continue to evolve with an eye on both speed and equity.

🎧 Listen to the full episode: https://open.spotify.com/episode/5vUDv1rHBODH2hCsh6Y5nw?si=MimNHGdMRRGFZQyyI3iMAw
From Historic Wins to Housing Headwinds — now streaming wherever you get your podcasts.

📩 Looking to buy, sell, or strategize credits?
Email us at team@fallbrookfinance.com with subject line: “The Tax Credit Talk sent me.”

About Fallbrook Financial Services
Fallbrook Financial Services has placed over $6 billion in state tax credits across housing, renewable energy, film, brownfields, and more. We’re one of the largest brokerages in the country—here to help you make your credits count.