ATLANTA, May 26, 2026 (GLOBE NEWSWIRE) — Monarch Private Capital (“Monarch”), a national leader in tax credit investing, today announced its strong support for the recently enacted legislation and issuance of program guidelines in New York that bifurcates the state Historic Tax Credit (HTC) from the federal HTC and establishes a transferable state credit structure beginning in tax year January 1, 2026.
Monarch believes this evolution represents a significant, market-driven improvement in how historic rehabilitation projects are monetized and executed.
Historically, New York’s HTC has been “twinned” with the federal historic credit and monetized through the same investor, often resulting in complex deal structures and limited investor participation. Under the updated program structure, the New York HTC is able to be decoupled from the federal HTC and freely transferred beginning in tax year January 1, 2026, fundamentally reshaping the marketplace.
“This is a meaningful step forward for the historic tax credit market,” said Rick Chukas, Partner and Managing Director of Historic Tax Credit Investments at Monarch Private Capital. “By bifurcating the New York credit from the federal HTC and providing free transferability, New York State is creating a more efficient and accessible marketplace. Developers can now optimize pricing across multiple investors, while investors benefit from a simpler, more efficient investment vehicle.”
Under the new structure:
- Federal HTC investors—primarily large banks and institutional funds—can focus exclusively on long-term federal tax equity investments, reducing complexity and improving execution.
- State credit buyers gain access to a short-duration, transferable tax asset, eliminating the need to participate in complex partnership structures.
- Developers benefit from a broader and more competitive investor base, enabling improved pricing, faster monetization, and greater flexibility in structuring transactions.
The introduction of transferability is expected to significantly expand participation beyond traditional tax equity investors, opening the market to:
- Community and regional banks
- Insurance companies
- Corporations with New York tax liability
- Family offices and high-net-worth investors
This expanded investor base mirrors broader trends across the tax credit landscape, where transferability has increased liquidity, improved pricing, and accelerated capital deployment. Monarch has seen this firsthand through its growing leadership in transferable tax credit transactions, including recent Investment Tax Credit (ITC) transfers across a diverse investor base.
“Ultimately, this structure should bring more capital into historic preservation,” Chukas added. “By making the New York HTC easier to access, this should result in more project rehabilitation throughout the state while also strengthening the overall effectiveness of the program.”
Monarch anticipates the new transferability framework will accelerate transaction volume and broaden investor participation across New York historic rehabilitation projects beginning in 2026, and remains committed to partnering with developers, investors, and policymakers to advance innovative financing solutions that deliver both strong financial returns and measurable community impact.
About Monarch Private Capital
Monarch Private Capital manages impact investment funds that strengthen communities by creating energy, affordable housing, and jobs. Its funds provide predictable returns through federal and state tax credits in affordable housing, historic rehabilitation, energy, and film. Headquartered in Atlanta, Monarch maintains offices and professionals across the United States, partnering with institutional and individual investors, developers, and lenders to advance sustainable economic growth.
CONTACT
Jane Rafeedie
Monarch Private Capital
Jrafeedie@monarchprivate.com
470-283-8431
A photo accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/e23d461b-ae14-477d-8231-159ebd1849a9
