(25% for income-producing and owner-occupied properties)
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.