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Work Session   Item #:
Work Session Meeting
Historic Tax Credits
Telly D. Tucker
Work Session Meeting: 08/09/2018
Rep. Darin LaHood (R-IL) and Rep. Earl Blumenauer (D-OR), and Sen. Bill Cassidy (R-LA), Sen. Ben Cardin (D-MD) and Sen. Susan Collins (R-ME), have introduced bi-partisan legislation – The Historic Tax Credit Enhancement Act – that would make the credit more attractive to developers while bringing it in line with a more recently enacted tax incentive, the Low-Income Housing Tax Credit (LIHTC).
Presently, the tax code requires that building owners subtract the amount of federal historic tax credits from a building's basis--the amount a property is worth for tax purposes. The HTC basis adjustment legislation would eliminate this requirement, providing greater tax benefits for any qualified historic building owner who chooses to substantially rehabilitate their building, and attracting more capital from tax credit investors -- resulting in more dollars flowing to historic rehabilitation projects.
Locally, the HTC program has spurred over $102.4 million in private investment within the City of Danville since 2005 and has been the main driver for growth and rehabilitation in the River District. In turn, these once-blighted or unused structures have been given new life and increased real estate tax revenues for those properties. Enacting this legislative change modernizes the credit while still preserving the vast majority of the savings achieved by the Tax Cut and Jobs Act, serving to minimize costs and maximize economic impact for communities throughout the country.
With approval of this resolution, we are asking our congressional delegation – Senator Mark Warner, Senator Tim Kaine, and Representative Tom Garrett – to support the Historic Tax Credit Enhancement Act, sponsored by Cassidy/Cardin in the Senate (S. 3058) and LaHood/Blumenauer in the House of Representatives (H.R. 6081).
The Historic Tax Credit program (HTC) provides owners of historic buildings with an incentive to invest in the difficult task of rehabilitating their properties according to governmental standards that maintain a historic building's character and integrity. Since it was enacted by President Ronald Reagan in 1981, this program has transformed tens of thousands of underused buildings for new and productive uses, created millions of good-paying jobs, and attracted more than $131 billion in private investment for cities and towns across America.
It is recommended that Danville City Council approve a Resolution Urging the City of Danville's Congressional Delegation to Support the Historic Tax Credit Enhancement Act of 2018.
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