NJ Historic tax credit bill stalls in Legislature

Administration opposition and the excuse of a poor budget climate caused the long-awaited NJ historic rehabilitation tax credit bill – HPRA, A791, S468 – to stall in the legislature without any committee hearings, as of the summer recess. While the Governor and legislature struggled with controversial legislation, promoted by the real estate development industry, that was billed as “smart growth” solutions to the state’s economic woes, the tool proven in 29 states to be one of the best and greenest economic development and community revitalization instruments was completely ignored.

In a recent column, Neil Peirce quotes civic leaders in St. Louis regarding the amazing comeback of that city’s downtown, almost entirely spurred by Missouri’s historic tax credit: “As Richard C.D. Fleming, president of the St. Louis Regional Chamber and Growth Association and a leader in getting the Missouri Legislature to pass the credit explains: “The total new investment in downtown is almost $5 billion. And close to 90 percent of it is historic preservation — great old structures rehabilitated for offices, condos and more — not just a bunch of new megastructures.”

Great historic buildings in New Jersey towns and cities, large and small, go unrestored and languish. And state and local governments continue to sponsor wholesale teardowns in Camden and elsewhere – a failed urban revitalization strategy in city after city across the country.

It’s time for legislators and the Governor to start learning from places that are succeeding at community and economic revitalization, like St. Louis, Baltimore and Providence! MORE INFO on the Historic Properties Revitalization Act

 

More groups join NJ tax credit coalition

New Jersey Future, the statewide research and policy group advocating Smart Growth principles and programs, and Downtown NJ, the association for New Jersey downtowns, have joined the NJ Heritage Development Coalition.  The Coalition is a network of organizations involved in real estate, development, construction, preservation, planning, architecture, housing and urban revitalization that is committed to Smart Growth and is advocating for adoption of a New Jersey historic rehabilitation incentive program.

 

Maryland Governor proposes supplemental money for state tax credit

from Preservation Maryland:

Governor O’Malley included $10 million dollars for the Heritage Tax Credit program in the supplemental budget presented to the General Assembly on March 31, 2008.

The Heritage Structure Rehabilitation Tax Credit Program is One of the State’s Most Powerful Economic Development and Community Revitalization Tools. Through 2006, the tax credit program has leveraged private sector investment in over 2,600 residential and 550 commercial rehabilitations statewide. The projects represent a combined total of $1 billion in private investment.

It is a crucial program to the development of historic communities and Main Streets across Maryland. The Tax Credit program is also a key Smart Growth program. Every county in Maryland contains a Tax Credit project.

 

Smart Growth & Development advocates support R.I. tax credit

Grow Smart Rhode Island, the smart growth advocacy organization, and other supporters of the state’s historic rehabilitation tax credit program have released a new report quantifying the program’s impact on the state. The report, commissioned by a 57-member group that calls itself the Coalition for Neighborhood & Economic Renewal and includes businesses, municipalities and civic groups, shows that from 2002 through 2012, the credit will cost the state $460.16 million in tax revenue and generate $2.46 billion in economic activity – that is, $5.35 for every $1 invested. In addition, the program is expected to add $767 million to the tax base of local communities and generate $297.6 million in additional property-tax revenue over the next 20 years.

Meanwhile, Speaker of the Rhode Island House William Murphy recently reaffirmed his longstanding support of a strong, predictable and transparent state Historic Tax Credit. In remarks before the Greater Providence Chamber of Commerce at its February 7th legislative luncheon, the Speaker highlighted the value of the tax credit program and his opposition to the R.I. Governor’s proposed retroactive cap on the program.

It is anticipated that House Majority Leader Gordon Fox will introduce legislation soon that will incorporate the major tax credit proposals by Grow Smart Rhode Island and the Coalition for Neighborhood & Economic Renewal as an alternative to the Governor’s tax credit cap proposal.

 

Virginia rehab credit spurs $1.4 billion in investment

Virginia’s Historic Rehabilitation Tax Credit Program benefits Virginia
communities in multiple ways. Since its inception in 1997, the program
has spurred private investment of approximately $1.5 billion in the
rehabilitation of more than 1,200 landmark buildings. This investment
in turn has generated an economic impact of nearly $1.6 billion in the
Commonwealth and created more than 10,700 jobs and $444 million in
associated wages and salaries.

Survey results were applied to the analysis of a 10-year total of $1.454
billion in private expenditures for rehabilitation tax credit projects. It was
determined that $952 million represents the amount leveraged by the state
tax credit—those dollars tied to projects for which state tax credits were an
essential driving force.
Among the study’s conclusions, expenditures of $952 million created
an estimated

• $1,595 billion in total economic impact to Virginia

• 10,769 full and part-time jobs from direct employment and

• indirect employment in other sectors of the economy

• $444 million in labor income (wages and salaries)

• $46 million in state tax revenue

Other program dividends enhance quality of life and social capital by preserving
and restoring community fabric; inspiring people toward reviving historic
districts and reclaiming their community’s legacy; promoting heritage tourism
and educational resources; increasing a broader range of housing stock;
and supporting smart-growth and sustainable development through the
efficient reuse of existing buildings and infrastructure.

 

29 states already compete for redevelopment investment

Currently, over half of the states have recognized the power of a state level historic rehabilitation incentive to capture new investment dollars in older towns and cities. The states surrounding New Jersey have all adopted such incentive programs and are seeing hundreds of millions of dollars in private revitalization investment in their cities. Maryland, Delaware, New York, Connecticut and Rhode Island have all adopted laws creating credits against state taxes to provide incentives for the appropriate rehabilitation of historic buildings. Philadelphia has seen similar investments thanks to significant property tax abatements on offer (Pennsylvania’s constitution prohibits income tax credits).

New Jersey offers no such market-based incentives for urban redevelopment. Where do you suppose the money’s being invested?

 

NJHDC gets new members

The NJ Heritage Development Coalition grows! The NJ chapter of the American Planning Association; Regional Plan Association for NJ, NY & CT; the National Trust for Historic Preservation, Preservation New Jersey and the Croassroads of the American Revolution Association are soon to be joined by more groups committed to thoughtful economic development in NJ.  The Coalition supports the Historic Properties Revitalization Act (HPRA).