10/23/2017 | Press release | Distributed by Public on 10/23/2017 16:23
Congressman David B. McKinley, P.E., (WV-1) partnered with Congressman Rod Blum (IA-1) to organize a bipartisan letter to the Chairman and Ranking Member of the House Committee on Ways and Means, urging the inclusion of the Federal Historic Tax Credit (FHTC) in the House's tax reform legislation. McKinley and Blum were joined by 32 other Members in signing the letter to Committee leadership.
'Preserving the Historic Tax Credit is important as we begin updating our burdensome and outdated tax code. Since its inception in 1978, this tax credit has spurred economic activity and has directly aided in the revitalization of Main Streets and rural communities nationwide. Over 40% of the projects using this credit have been in rural communities, breathing new life into their downtowns and attracting investment,' said McKinley.
'Without the tax credit this investment would dry up. The Historic Tax Credit pays for itself, generates $29.8 billion in tax revenue and brings in $1.18 for every dollar spent. This bipartisan group of lawmakers is urging the Committee on Ways and Means to ensure this crucial credit is part of our comprehensive tax reform package,' McKinley said.
The FHTC was first enacted in 1978, and was later made permanent as part of the Reagan Tax Reform of 1986. According to Rutgers University, the FHTC has generated $29.8 billion in tax revenue, and brings in $1.18 for every $1.00 in federal tax expenditures. The credit generates extensive economic activity in localities across the U.S. and contributes significantly to job creation, including 109,000 jobs in 2016 alone.
Without this tax credit to offset the cost of revitalizing these historic structures, most developers would turn to new construction as the preferred method for expansion, leaving these buildings and homes vacant. The investment opportunities created by the FHTC enables developers and businesses to invest in restoration projects to historic structures in their communities that would otherwise be considered a risky decision. This not only rehabilitates the historic buildings, but revitalizes the area around them, breathing new life into the community and spurring economic growth.
According to the National Parks Service, West Virginia has had a total of 92 FHTC projects since 2002, resulting in over $175 million in development. This has created 1,725 construction jobs and 1,809 permanent positions. These FHTC projects also generated over $170 million in income and $35.7 million in tax revenue.
To view the letter in its entirety, click here.