A comprehensive new report conducted by Rutgers, the State University of New Jersey, analyzes the economic impact of the federal Historic Tax Credit since its inception in 1976, ‘clearly shows that historic preservation is a powerful tool for economic revitalization and job creation’ and concludes that the Historic Tax Credit is a highly efficient job creator—accounting for the creation of 1.8 million new jobs over the life of the program.
The report was conducted by researchers at the Edward J. Bloustein School of Planning and Public Policy, Rutgers, the State University of New Jersey, and commissioned by the Historic Tax Credit Coalition, a public policy advocacy organization. The report was produced by the Rutgers University Center for Urban Policy Research under the guidance of Dr. David Listokin, a national expert in the economics of historic preservation.
“This report reflects a 15-year effort on the part of Rutgers, working with the National Park Service and numerous state historic preservation offices, to quantify the specific economic impacts of historic preservation,” said Dr. Listokin. “Using detailed models, we looked at both the direct, immediate economic impact—at both the state and national level—of historic preservation projects, as well as the secondary effects those projects have on the national and state economies. Our report, which builds on the regional economic analysis conducted by Dr. Michael Lahr, a professor at Rutgers University, clearly shows that historic preservation is a powerful tool for economic revitalization and job creation.”
Major findings of the report include:
· The Historic Tax Credit is an efficient job creator— rehabilitation investments have generated about 1.8 million new jobs since 1976 and 58.8 thousand in 2008 alone. The Rutgers study shows that historic rehab projects require more highly skilled workers, generate better-paying jobs and return more economic benefits to local communities than other stimulus strategies such as highway construction.
· The cumulative impacts to the national economy are substantial, including $198 billion in total output, $98 billion towards Gross Domestic Product (GDP), $72 billion in wages and salaries, and $29 billion in federal, state and local taxes.
· The federal Historic Tax Credit is a strategic investment for the nation, evidenced by the fact that the total federal cost of the HTC, $16.6 billion in 2008 inflation-adjusted dollars, is more than offset by the $21 billion in additional federal taxes paid as a result of HTC project activity to date. In addition, the $16.6 billion investment has leveraged a five times greater amount of historic rehabilitation costs—a total of $85 billion.
While underscoring the success of the Historic Tax Credit program, the report suggests several improvements to modernize the program and ensure its continued efficacy—all of which are included in the Community Restoration and Revitalization Act now before Congress. The legislation, introduced in the House by Reps. Allyson Schwartz (D-PA) and Patrick Tiberi (R-OH) and in the Senate by Sens. Olympia Snowe (R-ME) and Blanche Lincoln (D-AR), seeks to amend the Historic Tax Credit to facilitate smaller, Main Street-scale investments, providing incentives for the kind of sustainable rehab projects that make historic buildings more energy-efficient, and expanding the number of properties that would be eligible to earn these federal tax credits.
“This report makes clear that historic preservation is not just about holding on to our past, it’s also about building a better future by creating jobs, spurring revitalization, developing sustainable communities, and improving the economic health of the nation,” said Richard Moe, president of the National Trust for Historic Preservation. “By encouraging the restoration and rehabilitation of older and historic buildings, historic tax credits are one of the best investments government can make—a key consideration in lean budget years. This report should invigorate Congress to pass the Community Restoration and Revitalization Act and strengthen the federal historic tax credit program.”
“Both Republicans and Democrats agree that more needs to be done to create jobs, but sometimes disagree on the tactics,” said Congressman Russ Carnahan (D-MO). “The good news is that we agree that historic preservation creates jobs and does so with a net gain in revenue. My home state of Missouri serves as an example where more than 40,000 jobs have been created through historic preservation since 1998.”
Carnahan has introduced HR 3670, the Historic Homeowners Revitalization Act using the successful Missouri model on the national level and has 37 cosponsors from both parties. Representatives Carnahan (D-MO) and Turner (R-OH) co-chair the bipartisan Congressional Historic Preservation Caucus that serves as a forum for Members to discuss ways to protect and revitalize America’s historic places and structures.
“During my tenure as Mayor of Dayton and now as a Member of Congress, I have seen first-hand how the historic tax credit helps to promote economic development while at the same time also helps to revitalize our historic structures to preserve our nation’s proud history,” said Rep. Michael Turner (R-OH). “I thank Professor Listokin and his team for this report that confirms that the historic tax credit creates jobs, rehabilitates downtown areas, restores historic towns, and supports investment in our neighborhoods. It’s important to preserve our cultural legacy for future generations to come.”
“A strengthened Historic Tax Credit program, not only protects our past, but secures our future by creating more jobs and encouraging revitalization,” said Representative Patrick Tiberi (R-OH). “As this report shows, enactment of the Community Restoration and Revitalization Act would mean more jobs on Main Street, preserved historic buildings and property, and stronger communities.”
“This report shows that the economic impacts of historic rehab are aligned with many of our nation’s most important needs during these tough times,” said John Leith-Tetrault, President of the Historic Tax Credit Coalition. “Rutgers’ research makes the case for enhancements to the federal historic tax credit as an important part of any Congressional stimulus package. Given how difficult it is for our industry to finance rehabilitation projects right now, the timing for these amendments couldn’t be better.”
Link to National Trust for Historic Preservation
Link to INTO article
