In June 2012, the Pennsylvania General Assembly finally enacted an historic preservation tax credit after a decade of hard work led by Preservation Pennsylvania. PennFuture was part of the coalition that helped pass this law.
This week, the fruits of our labor are now fully tangible with the announcement by the Department of Community and Economic Development (DCED) that application forms and program guidelines for the tax credit are now available.
Act 85 of 2012 authorized $3 million of historic preservation tax credits for each fiscal year beginning July 1, 2013. The tax credit is open to all classes of individual, business and corporate taxpayers. Taxpayers who seek a tax credit for the rehabilitation of a qualified historic structure must apply to DCED for the tax credit and have their application and rehabilitation plan approved by the Pennsylvania Historical and Museum Commission.
PennFuture supported this effort because the experience of other states demonstrates that investing in the rehabilitation of historic buildings can play a vital role in the revitalization of older communities and the preservation of open space and working farmland.
For example, Virginia's Rehabilitation Tax Credit has spurred $1.5 billion in private investment, the rehabilitation of 1,200 buildings, and created more than 10,700 jobs according to the Virginia Department of Historic Resources.
Investments in historic preservation can increase property values, retail activity and local tax revenue. State programs can boost heritage tourism efforts by preserving distinctive architecture and encouraging the development of bed and breakfasts and other businesses.
The rehabilitation of a single, large commercial building can become the "anchor" for successful revitalization efforts in some cities and towns. In other areas, the rehabilitation of individual properties can help create a critical mass that brings blocks and neighborhoods back to prosperity.
At $3 million annually, Pennsylvania has a small tax credit program but one that can be effective and expanded now that it is finally here.
Steve Stroman is the state policy director for PennFuture and is based in Harrisburg.
