National Trust Releases 2014 Annual Federal Historic Tax Credit Report

The National Trust for Historic Preservation’s publication, “The Federal Historic Tax Credit: Transforming Communities” which focuses on the federal historic tax credit being a catalyst for change, was released today. The report discusses the importance of the federal historic tax credit, and its effectiveness in revitalization of communities. While the Trust provided case studies on success stories in Maryland, Utah, and Georgia (focusing on 2001-2013), they also provided an update on the United States’ success using the federal historic tax credit. In two words, it works!
The case studies provided by the Trust provide a more in-depth look at how the historic tax credit has benefited the state and local economies. In Maryland, for example, it was shown that every $1 million invested in historic preservation tax credit projects, 2,500 tons of demolition debris avoided landfills. The 397 projects have created 19,803 jobs and generated $753,773,100 in household income. In Georgia, every $1million invested in historic preservation added $558,000 to state tax revenues and creates 16.3 construction jobs. Of their 349 projects, 7047 jobs have been created and generated $253,672,900 in household income. The case studies also reveal the true catalytic effect of the federal historic tax credit. The number of building permits issued, particularly for alteration, conversion, and repair has skyrocketed, the numbers show that people are moving back to areas where these projects have been completed, and property values have increased. One of the case studies discussed is the American Can Company, where surrounding property values in 2005 were $1,626,069. Eight years later, that same property is valued at $24,368,347.
Since its inception into the tax code over 30 years ago, $21 billion of tax credits have generated over $26.6 billion in federal tax revenue. With 75% of the revenue benefiting the state and local economies, this is a program which has proven itself time and time again. Since the first tax credit in 1978, $109 billion in private monies spurred by the federal tax credit have created 2.4 million jobs (generating $91.5 billion of income), 39,600 historic buildings have been rehabilitated, which includes 450,000 housing units. So how does Ohio compare? Between 2001 and 2013, 9799 projects were completed using $4,002,259,567 of tax credits across the country. Ohio contributed 775 projects, with $328,632,836 in tax credits, roughly 8%. Way to go, Ohio!
You can read more about the study and download a copy here.