FAQs

Creating Local Jobs
  • Since 2002, in the State of Iowa alone, federal historic tax credit projects have created more than 17,500 jobs and leveraged over $1 billion in private investment

  • In Iowa, Federal HTC projects have generated nearly $203 million of local, state and federal tax revenue since 2002. 

  • The majority of these projects were paired with the SHTC, which was critical to the financial feasibility of the projects.

Safe Investment
  • The $23.1 billion in Federal HTCs issued over the life of the program has generated $28.1 billion in tax revenue – a net gain to the federal treasury of $5 billion.

  • Taxpayer funds are wisely protected, because funding from the credit is not provided until the project is complete and functioning.  With the HTC, the government is supporting results, not promises to perform.  The private sector takes the risk

Expanding Opportunity
  • Dense downtown development returns greater investment to the community than putting tax dollars to sprawl.

  • Dense downtown development is the “golden goose” of urban economics.

  • Incentivizing downtown development (partially through historic rehab projects) is the most economically sound approach for cities.  Consider the following averages:

    • suburban residential development produces $11,000/acre in property tax revenue annually

    • big box retail on the edges of town can produce $54,000/acre in property and sales tax revenue and produces 6 jobs/acre

    • downtown mixed-use (retail/office/residential) can produce $413,000/acre in property and sales tax revenue and produces 74 jobs/acre – AND the additional residential units/acre add to the economic activity in the downtown

  • The HTC makes historic development financially feasible, filling the gap in the sources of funding. Consequently, surrounding property values increase, creating additional tax revenue.  Without the HTC, buildings risk remaining vacant; inviting crime, deterring adjacent investment, lowering the tax base, and costing government money.

Rehabilitation Incentives Are Well-Tested in 34 states

Wisconsin

In 2014, $34.9M in state credits leveraged:

  • Rehabilitation of more than 25 buildings

  • State economic impact of $417.6M

  • More than 2,800 new jobs were created

  • Every $1 spent resulted in a $9 economic impact

Source: Wisconsin Historic Tax Credit Impact Analysis, prepared by Baker Tilly, May 2015

Minnesota

FY 2010 and FY 2011, $119M in state credits leveraged: 


  • Rehabilitation of 14 projects

  • State economic impact of $989M. 


  • 6,512 new jobs were created


  • Every $1 spent resulted in a $8.32 economic impact

Source: Economic Impact of Projects Leveraged by Minnesota Historic Rehabilitation Tax Credit in Physical Year 2012, prepared by University of Minnesota | Extension

Kansas

2002–2009, $69M in state credits leveraged:

  • State economic impact of $379M

  • 4,400 new jobs were created

  • Every $1 spent resulted in a $4 economic impact

Source: Economic Impact of Historic Rehabilitation Tax Credits in Kansas, prepared by Rutgers University

Louisiana

2002–2010, $141M in state credits leveraged:

  • Rehabilitation of 117 projects

  • State economic impact of $1.2B

  • 16,745 new jobs were created

  • Every $1 Louisiana spent, it received $3.22 in new taxes

Source: Economic Impact of Louisiana’s Historic Tax Credit Program, prepared by Timothy P. Ryan, PHD

Ohio

2006-2015, 482.3M in state credits leveraged:

  • Rehabilitation of 238 projects

  • State economic impact of 1.1$B

  • 23,350 new jobs created

  • Every $1 spent resulted in a $6 economic impact

Source: Ohio Historic Preservation Tax Credit Impact Study, prepared by Cleveland State University, October 2015

Kentucky

In 2015, $33.8M in state credits leveraged:

  • Rehabilitation of more than 7 projects

  • State economic impact of $626.2M

  • An anticipated 3,474 new jobs were created

  • Every $1 Kentucky spent, it received $2.50 in new taxes

Source: Kentucky Historic Tax Credit Impact Analysis, prepared by Baker Tilly, Feb. 2016

Virginia

1997–2013, $986.35M in state credits leveraged:

  • Rehabilitation of 2,375 projects

  • State economic impact of $3.93B

  • 31,000 new jobs were created

Source: Economic Impact of Historic Rehabilitation Tax Credits in Virginia, prepared by VCU Center for Urban and Regional Development, January 2014

North Carolina

Since 1998, $179M in state credits leveraged:

  • Rehabilitation of 1,989 projects

  • State economic impact of $1.4B

  • 14,100 new jobs were created

  • Every $1 spent resulted in $12.51 (income producing projects) or $7.93 (non-income producing projects)

Source: Historic Preservation Foundation of North Carolina

Maryland

Since 1996, About $350M in tax credits leveraged: 


  • Rehabilitation of around 4,400 projects

  • 25,000 new jobs were created

  • Every $1 spent resulted in $8.53 economic impact

Source: Department of Planning, Maryland Historical Trust

Paramount Theatre | Cedar Rapids, Iowa

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