by Sarah Curry
Director of Fiscal Policy Studies
A press release went out yesterday about the House voting to bring back the historic preservation tax credit. Hopefully the Senate will see that this is bad policy and either change this to a local grant program or not enact the tax credit at all. Below is the press release:
Raleigh, NC – Today, Rep. Stephen Ross (R-Alamance), Rep. Jon Hardister (R-Guilford), Rep. Rick Glazier (D-Cumberland), and Rules Chair Rep. David Lewis (R-Harnett) joined Cultural Resource Secretary Susan Kluttz and Speaker Tim Moore (R-Cleveland) to discuss the significance of HB-152: New Historic Preservation Tax Credit. House Members from both sides of the aisle attended a press conference this morning to show bipartisan support of the bill.
“After two days of debate and three defeated amendments, the NC House passed House Bill 152 with an overwhelming 98-15 third reading vote. There was overwhelming bipartisan support in the House, and now we need to carry that support on to the Senate,” stated Rep. Ross, primary co-sponsor of the bill.
Over the years, Historic Tax Credits have been used in 90 of the 100 counties by businesses and homeowners in both rural and urban areas. The credits have contributed to our economy by creating jobs, while also preserving the historic identity of our local communities.
“Tax Reform is a process, not just an event. This New Historic Tax Credit is consistent with the House’s goal of prioritizing economic development in North Carolina. We look forward to continuing the tax reform discussion with the Senate and the Governor on how best to create an environment for economic growth,” added Rep. Lewis, primary co-sponsor of the HB-152.
Since 1998, over 2,400 historic tax credit projects have been completed statewide, bringing over $1.6 billion of private investment into North Carolina communities. A non-partisan study by the General Assembly Fiscal Research Division determined that the rehabilitation credit would attract 2.5 times more jobs at the same cost to the State Treasurer as equivalent to an across-the-board tax reduction. The credit provides a direct net benefit to the State General Fund.
Cultural Resources Secretary Susan Kluttz has been leading a tour of rehabilitated sites across the state, “I’ve embarked on tour of cities and towns, no matter where I go – large or smaller, east, west, or Piedmont – I hear the same story: ‘the success stories in my city or town could have not been done without these tax credits’,” said Kluttz. “I have found this tells the North Carolina Story. We have a rich history, and North Carolinians value that history. Whether its textiles or tobacco this is the story of who we are in North Carolina.”
The New Historic Tax Credits has limited eligible properties to only those listed on the National Register of Historic Places.
“When it comes to revenue, job creation and community development, New Historic Preservation Program is a good direction for our economy and a win-win for local governments and the State of North Carolina. We have an opportunity to take old abandoned factories and mills that were once the beating heart of many communities and pump life back into them,” concluded Rep. Ross.