Historic Preservation Tax Credits are here to stay

A press release by the NC House this afternoon,

This week, the North Carolina House and Senate unveiled a $21.735 billion state budget compromise. The budget, which funds government functions for FY 2015-2016 and FY 2016-2017, restores the Historic Preservation Tax Credit for all of North Carolina.  
 
“I am very pleased we were able to come to a compromise that included the House position on Historic Preservation Tax Credits,” said Representative Stephen Ross (R-Alamance).  “There was a huge rally of support from individuals and groups from around North Carolina that believed in the widespread benefits of preserving historic structures in our state. The Historic Preservation Program has occurred in 90 out of 100 counties in North Carolina to bring new life to the old mills and other abandoned manufacturing facilities. This truly is the result of a team effort and will continue to do great things for North Carolina.”
 
Rep. Ross was the leading sponsor of HB-152: New Historic Preservation Tax Credit, which was the catalyst for its inclusion in the state budget. The compromise allocates $8 million in FY 2016-2017.
 
Over the years, Historic Tax Credits have been used by businesses and homeowners in both rural and urban areas. The credits have contributed to the North Carolina economy by revitalizing and preserving the historic identity of our local communities.
 
“I commend Rep. Ross for his fortitude throughout this long, often challenging process. He has been an essential member this session and a leading voice for the Historic Tax Credit restoration. Without his work, it may not have been in the budget,” Speaker Tim Moore (R-Cleveland) stated. “He understood what this credit would mean – not only for Alamance County – but for the entire State, and stood firm.”
 
Since 1998, over 2,400 historic tax credit projects have been completed statewide, bringing over $1.6 billion of private investment into North Carolina communities. A non-partisan study by the General Assembly Fiscal Research Division determined that the rehabilitation credit would attract 2.5 times more jobs at the same cost to the State Treasury as equivalent to an across-the-board tax reduction. The credit provides a direct net benefit to the State General Fund.

Sarah Curry

Sarah Curry is Director of Fiscal Policy Studies at the John Locke Foundation.

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