Earlier this month, the much anticipated Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2019 was published. This report highlights the success of the Federal Historic Tax Credit program nationwide, specifically that it generated $6.2 Billion in GDP and created 109,000 jobs in 2019. Meaningful impacts of the program can also be seen here in New York, with $550 million in GDP and 9,561 jobs created. This report provides further evidence that the historic tax credit program has an incredibly important role as the nation looks toward a post-pandemic economic recovery.

"For more than 42 years, the Federal Historic Preservation Tax Incentives program has enabled the preservation and rehabilitation of more than 45,000 historic properties, while generating more than $188.2 billion in GDP nationally,” said Margaret Everson, Counselor to the Secretary, exercising the delegated authority of the National Park Service Director. “This is an incredible example of a federal/state partnership that continues to drive investments in historic preservation and revitalize communities across the country."

Click here to read the League’s support letter.

We are pleased that 17 partner organizations signed-on showing overwhelming support for the following preservation initiatives increasing the historic tax credit from 20% to 30% for small projects, renewing the historic barn tax credit, maintaining funding for historic sites, support for the Environmental Protection Fund, and inclusion in a future Environmental Bond Act. All of which will provide much needed economic stimulus in a post-COVID economy in New York State. We look forward to continuing to work with the agency and our colleagues on important preservation matters.

House Passes H.R. 2 Infrastructure Bill, inclusive of HTC-GO Enhancements & Temporarily Addressing COVID-19 Distressed Projects 

The Invest in America Act [aka the Moving Forward Act], includes $1.5 trillion to fund infrastructure projects. It dedicates about $400 billion in infrastructure investments for roads, bridges, and transit, and includes key Historic Tax Credit (HTC) improvements and temporary measures related to COVID-19 recovery endorsed by the historic preservation community.

Thank you to our New York House Representatives for supporting this effort, including those who co-sponsored the bill: Yvette Clarke [NY-9], Adriano Espaillat [NY-13], Brian Higgins [NY-26], Carolyn Maloney [NY-12], Sean Patrick Maloney [NY-18], Gregory Meeks [NY-5], Joseph Morelle [NY-25], Thomas Suozzi [NY-3], Paul Tonko [NY-20], Nydia Velazquez [NY-7].

A big thank you to all of our supporters who joined us in this advocacy effort. Your efforts and support of the Preservation League clearly communicated how important preservation is to our economic recovery. This legislation supports preservation in the following ways:

• A temporary increase for all federal historic tax credit projects to aid in post pandemic recovery (30% through 2024, stepping back down to 20% by 2027), and a temporary extension to rehab deadlines impacted by the pandemic;

• Make permanent most of the provisions in the Historic Tax Credit Growth and Opportunity Act, H.R. 2825/S. 2615 (HTC-GO) including: 30% Historic Tax Credit for projects under $2.5 million;

• Eliminates the HTC Basis Adjustment, bringing more value to HTC’s;

• Reduces the Historic Rehab Test to 50% of a building’s basis instead of 100%; 

• Makes the credit easier to use by nonprofits; and

• Includes a provision for communities to rehabilitate existing public schools using the HTC.

Join our continuing advocacy efforts:

Contact Senators Chuck Schumer and Kirsten Gillibrand to share how HTC projects impacted by the pandemic would benefit from temporary HTC provisions in emerging COVID-19 relief Senate legislation. Explain how these enhanced and temporary HTC provisions would bring relief to distressed projects. Suggested messaging to Senators:

• “Please include these needed HTC enhancements that were in the recent House infrastructure bill (H.R. 2) to the next Senate bill, so it may be used as a tool to enable future projects to aid in the economic recovery.”

• Describe obstacles that local projects have faced during the pandemic, such as extra costs incurred and project financing difficulties.

• Share the HTC Recommendations for COVID-19 Relief and Recovery Legislation 

• Explain how the recommended provisions would help these projects and bring back the pipeline of HTC projects that are stalled in your community.

We applaud the House for recently introducing the Moving Forward Act, to aid in COVID-19 response and recovery. Investment in our communities will greatly aid in this response, and historic preservation is key to revitalization efforts. Page 86 of the Act outlines a way to leverage investment by temporarily increasing the Historic Tax Credit (HTC) from 20% to 30% for 5 years. Further, it amends the disqualified lease rules, making the HTC easier for nonprofits and other tax-exempt entities to access it by including projects like health care centers, arts organizations, community services, workforce training providers, and others to use the HTC. This legislation also includes several provisions of the Historic Tax Credit Growth and Opportunity Act, which we have been supporting this past year. 

You can help by contacting your New York Congressional Representative and encouraging them to co-sponsor the Historic Tax Credit Growth and Opportunity Act in the House, and ask Senators to support the introduction of similar legislation. 

Federal Historic Tax Credit Program | Positive Economic Impacts for New York State

The impact of historic preservation goes far beyond that of preserving historic architecture and our history. Positive economic results are achieved through the federal historic tax credit program, which can be credited with stimulating investment, creating jobs, generating taxes, and increasing income/GDP/Output. The National Park Service along with Rutgers prepares a yearly report on the Economic Impact of the Federal Historic Tax Credit. While the 2019 report is not yet available, the Preservation League has estimated the 2019 data in the interim and provides a look between those estimates and the program numbers from FY 2014-2018.

In October 2019, U.S. Senator Bill Cassidy [R-LA] introduced S. 2615, the Senate version of H.R. 2825, the Historic Tax Credit Growth and Opportunity Act (HTC-GO), introduced by the House earlier this year.

This legislation will bring more value to historic tax credits and improve access to the credit and investment for smaller rehabilitation projects across New York State.

Contact New York Senators Chuck Schumer and Kirsten Gillibrand and ask them to support this legislation!

Thank you to Assemblywoman Carrie Woerner for amending and introducing the following bills, which improve our NYS Historic Tax Credit:

• A5760B- NYS Historic Tax Credit increase from 20% to 30% for projects under $5 million.

• A8491- Ability to complete a single transfer of the NYS Historic Tax Credit.

These bills will provide further opportunities for economic development, particularly for main street communities and smaller projects which often have a hard time filling the funding gaps for small projects.

On June 19, supporters of improvements to the Federal Historic Tax Credit took part in Lobby Day on Capitol Hill hosted by the Historic Tax Credit Coalition, to encourage support for the HTC-GO legislation. Preservation League staff met with several New York representatives to express the importance of H.R. 2825, and how it would bring more value to historic tax credits and improve access to the credit and investment for smaller rehabilitation projects across New York State.

Don't for forget to contact your New York Congressional Representative and encourage them to co-sponsor the Historic Tax Credit Growth and Opportunity Act in the House, and ask Senators to support the introduction of similar legislation. Please join us in thanking representative Brian Higgins (D-NY) for being an early co-sponsors of this legislation!

Update: Many thanks to local representatives Anthony Brindisi (D-NY), Antonio Delgado (D-NY), Paul Tonko (D-NY), Chris Collins (R-NY), Joseph Morelle (D-NY), and John Katko (R-NY) for joining Brian Higgins in co-sponsoring this legislation!

An important bill passed in the Senate this session: S3645A. We appreciate the Senate's support and recognition of the importance of the NYS Historic Tax Credit and how these improvements will make the credit more functional and valuable for smaller, Main Street, and nonprofit projects. We would like to thank Senator Kennedy (D- 63rd District) for introducing this bill and to the following Senate co-sponsors: Metzger (D- 42nd District), Serrano (D- 29th District), and Kaplan (D- 7th District).

Thank you again to Governor Andrew M. Cuomo, the Assembly and Senate, especially Assembly Speaker Carl E. Heastie and Senate Majority Leader Andrea Stewart-Cousins, Assembly Ways and Means Chair Helene E. Weinstein and Senate Finance Chair Liz Krueger for including improvements to the Historic Tax Credit in the budget bill earlier this session, so that both State Historic Sites and cities with a poverty rate over 15% can take advantage of the Historic Tax Credit.

On May 17, legislation was introduced in the U.S. House of Representatives that would bring more value to historic tax credits and improve access to the credit and investment for smaller rehabilitation projects. H.R. 2825 introduced by Congressman Earl Blumenauer (D-OR) and co-sponsored by Darin LaHood (R-PA), Terri Sewell (D-AL), Mike Kelly (R-PA), Michael Turner (R-OH), and Brian Higgins (D-NY). Senate introduction of similar legislation is expected within the next few weeks. 

Read the NTCIC Action Alert to learn how this legislation would increase the value of HTC transactions and encourage redevelopment of smaller, income-producing properties. Please contact your New York Congressional Representative and encourage them to co-sponsor the Historic Tax Credit Growth and Opportunity Act, sponsored by Blumenauer/ LaHood in the House.

A special thank you to representative Brian Higgins (D-NY) for being an early co-sponsor of this legislation!