Urgent: Support the Federal Rehabilitation Credit

 

We are asking you to share your support for the Historic Tax Credit. It allows 20% of the eligible costs of rehabilitating a historic building listed on the National Register to be applied as a credit against federal income taxes. The HTC has been in place permanently since 1986 and since 2002 has created over 16,000 jobs in Texas.

The U.S. House Bill

The Tax Cuts and Jobs Act released by the U.S. House Committee on Ways and Means last week repeals the federal Rehabilitation Credit (Historic Tax Credit or HTC).   Section 3403 of the Act calls for the elimination of this valuable incentive to private investment in distressed buildings listed on the National Register of Historic Places in Texas.

The U.S. Senate Finance Committee Chairman’s Markup

The Senate version of the Tax Cuts and Jobs Act would reduce the rehabilitation credit from 20% to 10%, and eliminate the 10% credit on rehabilitation of pre-1936 structures that are not listed on the National Register. Section III(F)(2) can be read here for details (page 107).

The Tax Credit is Important in Texas

The recently enacted 25% state historic preservation tax credit, working in tandem with the federal credit, has resulted in significant private investment in historic Texas cities and neighborhoods since it went into effect in 2015.

We are hearing from many Texans about projects that are in planning stages across the state that will not be completed if the Historic Tax Credit is repealed as part of the final bill.

WHAT YOU CAN DO:

Working together, we can let Congress understand how important the Historic Tax Credit is to Texas.

1. Contact Senator John Cornyn (R-TX) on the Senate Finance Committee and Representative Kevin Brady (R-TX), Chairman of the House Ways & Means Committee and let them know how important the Rehabilitation Tax Credit is to the future of our state’s small towns and cities.

2. Sign onto our Statewide Letter of Support by e-mailing us your name, title and organization that you represent, or company affiliation if you are a professional in preservation, real estate or economic development, or community if you are a government official.  We will need to close the letter by 5:00 p.m. on Monday, November 13th.

3. Let your local media outlets know about the potential loss of this valuable tax credit, and share with them the locations of projects that have already been completed in your community or important vacant or derelict historic buildings that could benefit from the credit in the future.

4. Share your support with friends and colleagues, in Texas and elsewhere.  The future of so many historic buildings depends on this important tax credit.

LEARN MORE:

1. Read this report prepared by the National Trust for Historic Preservation on tax credits in Texas.

2. Search for projects in progress or that have been completed in your Texas community.

3. Read this report on the economic benefits of preservation in Texas.