Historic Resources Committee

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  • 1.  Urge Congress to Modernize HTC

    Posted 04-13-2023 01:01 PM
    Edited by Luz Angela Toro Acuna 04-14-2023 10:36 AM

    TAKE ACTION

    The Historic Tax Credit (HTC) is a proven tax incentive for revitalizing historic built assets, supporting equitable economic investment in communities of all sizes, and reducing both embodied and operational carbon. 

      

    The federal HTC is the largest federal investment in historic preservation. Unfortunately, the value of the HTC incentive has diminished over the past decade because of IRS rulings, administrative burdens, changes in the credit structure, as well as spreading the distribution of the credit over five years (as modified by the Tax Cuts and Jobs Act of 2017). As a result, the HTC has lost 20 – 25% of its investment value as interest rates continue to climb and materials and labor costs soar. 

      

    U.S. National Park Service statistics indicate that HTC applications are down 20% compared to pre-pandemic levels (2019), and the number of projects continues to decline even as the economy is rebounding. Historic buildings have simply become more difficult to rehabilitate.  

      

    However, for the first time in 20 years, renovations have overtaken new construction in architectural billings in America according to the Architecture Billings Index. AIA is among the national preservation organizations advancing the first positive modernization of the HTC since 1986. 



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    Luz Toro Intl. Assoc. AIA. CPNAA
    Manager, Resilience and Climate Adaptation
    The American Institute of Architects
    Washington, DC
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  • 2.  RE: Urge Congress to Modernize HTC

    Posted 04-14-2023 11:34 PM

    I agree that the HTC law needs Congressional reform. But this Congress is not normal and might take unpredictable action that could harm the preservation community irreparably. Having trod the halls of Congress myself lobbying for HTC in the past as a Vice President of Preservation of Historic Winchester, Inc., my advice is to let this dog lie still for a while and make what reforms we can make administratively until Congress returns to some less ideological and more common sense of reasoning.   



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    Edward Acker AIA Emeritus, LEED AP
    Retired in Broomfield CO
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  • 3.  RE: Urge Congress to Modernize HTC

    Posted 04-17-2023 03:18 PM
    Thanks for this timely request, Luz.  We couldn't agree more and are working with our representative to Congress.  In particular, we're urging consideration of transferable federal rehabilitation tax credits (as state RTCs are, here in Colorado). This would provide a guaranteed return on investment, especially in rural communities where it's sometimes difficult, if not impossible, to show financial benefit to the building owner considering rehabilitation vs. neglect. Even after fees and capital gains tax (if applicable) this would better guarantee that RTCs are a viable financial tool - and it could help both for profit and nonprofit building owners. 


    Nan Anderson, FAIA     

    Principal Dreamer

    FREIGHT910, LLC

    www.freightleadville.com

    303.475.2334








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