In March 2009, Arkansas became the 30th state to offer a rehabilitation tax credit (25% for income-producing and owner-occupied properties) when Governor Mike Beebe signed Act 498. Introduced by Representative Robert Moore from Arkansas City, HB1953 received support from the Historic Preservation Alliance of Arkansas, the Arkansas Rural Heritage Development Initiative, and other preservation-minded individuals and organizations.

     The Beacon, former Jersey City Medical Center, while a terrific adaptive use preservation project creating hundred of new housing units, is one of only two federal historic tax credits-driven projects approved in NJ last year. Missouri, which offers a companion state tax credit program, approved more than 150 projects in 2008!  A recent report by the Abell Foundation examines the environmental impacts of Maryland's Heritage Structure Rehabilitation Tax Cre

The Beacon, former Jersey City Medical Center, while a terrific adaptive use preservation project creating hundreds of new housing units, is one of only two federal historic tax credits-driven projects approved in NJ last year. Missouri, which offers a companion state tax credit program, approved more than 150 projects in 2008!

Meanwhile, we learn of recent studies that show that state tax credits increase the use of the federal rehabilitation tax credit. During the 5-year period preceding enactment of the state historic tax credit program (1996-2001), researchers found that Rhode Island attracted less than $10 million in federal historic tax credit investment. For the 5-year period since enactment (2002-2007), more than $78 million dollars in federal historic tax credits have been awarded to Rhode Island projects – an increase of more than 700 percent. This echoes Missouri’s experience when the number of projects using federal rehabilitation tax credits doubled after the introduction of the state credit. The Iowa State Historic Preservation Office found that the amount of federal tax credits issued increased by $3.7 million after the introduction of a state tax credit.  In 2008, New Jersey ranked 27th in the nation in the number of completed preservation projects leveraged with federal historic tax credits.

A recent report by the Abell Foundation examines the environmental impacts of Maryland’s Heritage Structure Rehabilitation Tax Credit and shows that there’s a $8.53 return on every state dollar invested.

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