Collins and Cardin, Kelly and Blumenauer Introduce Bipartisan, Bicameral Bill to Stimulate Infrastructure Development through the Preservation of Historic Properties
Washington, D.C. — U.S. Senators Susan Collins (R-ME) and Ben Cardin (D-MD) and Congressmen Mike Kelly (R-PA) and Earl Blumenauer (D-OR) have introduced bipartisan, bicameral legislation that would encourage infrastructure development and job growth across the country by making common-sense changes and enhancements to the federal Historic Tax Credit (HTC). The legislation is supported by GrowSmart Maine, among other organizations.
“The Historic Tax Credit incentivizes the restoration and preservation of historic buildings. It is a proven tool for revitalizing communities and catalyzing economic development in Maine and across the nation. Since 2008, the Historic Tax Credit has leveraged approximately $350 million in private investment in Maine alone,” said Senator Collins. “Our bipartisan legislation will make the Historic Tax Credit easier to use, expanding its economic benefit and creating good-paying jobs for hardworking Americans.”
Congress created historic preservation tax benefits in 1976 to encourage voluntary, private-sector investment in preserving historic buildings. The program is jointly managed by the National Park Service (NPS) and the Internal Revenue Service (IRS), in partnership with State Historic Preservation Offices. Since its creation, the HTC program has generated $78 billion in historic preservation activity to rehabilitate more than 41,250 historic properties, including the creation of over 525,000 housing units, of which approximately 150,000 are low and moderate-income units. Historic preservation programs have created more than 2.36 million jobs nationwide since 1978 (85,058 new jobs in FY 2015, the latest year for which data are available). A recent study by the National Trust for Historic Preservation estimates that every $1 of credits generates a minimum of $4 of private sector investment.
“The federal historic tax credit is the driving force behind rehabilitation projects that have given new life to historic buildings, created millions of jobs and attracted billions in private investment,” Stephanie K. Meeks, president and CEO of the National Trust for Historic Preservation, said. “We commend Sens. Collins and Cardin and Reps. Kelly and Blumenauer for their leadership in proposing sound improvements to the federal historic tax credit. Now, more libraries, theaters, town halls and other buildings can be restored to serve their communities in new ways. Tax reform aimed at growing the economy should enhance the historic tax credit.”
In Maine, the federal HTC has supported numerous projects, from the renovation of the former Eastland hotel in Portland, to the redevelopment of the Moosehead Manufacturing Mill in Dover-Foxcroft.
The Historic Tax Credit Improvement Act makes changes to the HTC to further encourage building reuse and redevelopment in small, midsize, and rural communities. It also makes the rehabilitation of community projects like theaters, libraries, and schools easier while maximizing the impact of state historic tax credits. Finally, the bill would make more historic properties eligible to use the credit by updating program requirements to reflect current industry practices. These reforms would be the first major changes to the HTC since the Tax Reform Act of 1986.
Text of the bill can be found here.
A section-by-section summary can be found here.
