WASHINGTON, D.C. (WVDN) – Last week, U.S. Senators Shelley Moore Capito (R-W.Va.) and Mark Warner (D-Va.) reintroduced the Rural Historic Tax Credit Improvement Act. This bill aims to streamline processes, reduce cost-burdens to rural home owners and small developers, and provide affordable housing incentives.
“Being a rural state shouldn’t mean losing out on private investment incentives like tax credits to help us preserve our communities’ history and revitalize local economies,” Senator Capito said. “I have enjoyed working with the dedicated group of West Virginians who brought this issue to my attention and who provided important perspectives during the creation of this legislation. The Rural Historic Tax Credit Improvement Act will help level the playing field for communities in West Virginia by attracting investment for economic expansion and additional housing supply.”
“By expanding access to historic tax credits, we can preserve our nation’s rich heritage while also incentivizing the construction of more affordable housing. I’m proud to join Senator Capito in introducing this legislation to bring new life to abandoned buildings and grow the housing stock in in rural communities,” Senator Warner said.
“Senators Capito and Warner recognize the need to improve the Historic Tax Credit so it can continue to be a cornerstone of redevelopment across the country,” Albert Rex, Chair of the Historic Tax Credit Coalition (HTCC), said. “We appreciate their leadership on this issue and look forward to working with them to ensure that communities in West Virginia and Virginia can have better access to the HTC and more impactful projects can happen there and across the country, especially in rural communities.”
Companion legislation in the House of Representatives is being led by U.S. Rep. Mike Carey (R-Ohio-15).
BACKGROUND:
Currently, many historic tax projects are not economically viable in small and rural areas, giving a disproportionate advantage of the credit to large urban developments. The costs associated with the credit as-is severely limits rural areas, and especially largely rural states like West Virginia, from being able to use the credit to rehabilitate and revitalize historic properties.
Through improvements to the credit included in the Rural Historic Tax Credit Improvement Act, rural Historic Tax Credit projects will be more financially feasible and will result in a higher number of these projects being completed in rural areas and states.
The Rural Historic Tax Credit Improvement Act:
- Makes historic tax credit projects in rural areas eligible for an increased credit from the current 20% to 30%.
- Includes an additional increase in the credit to 40% for affordable housing creation.
Allows the credit be used in addition to the Low-Income Housing Tax Credit (LIHTC).
- Allows small rural projects to claim the credit in the first year of use.
- Allows transferability of the credit to a third-party.
- Eliminates basis adjustment to simplify credit transaction.
This bill is supported by the Preservation Alliance of West Virginia, The Historic Tax Credit Coalition, Main Street America, and The National Trust for Historic Preservation.
Click here to view a one-pager on the bill.
Click here for full bill text.
