NEWS: Governor Signs 1st Ever Historic Preservation Tax Credit
Late Wednesday, Governor George E. Pataki signed New York State’s first-ever tax incentives for rehabilitation of historic commercial and residential structures, following legislative passage in late June of a significant new incentive that will encourage the revitalization of historic structures in urban and rural communities throughout New York State. The measure (A.11987 / S. 8392) was sponsored by Assemblymember Ron Canestrari and Senators Vincent Leibell, Frank Padavan, and Catherine Young.
“Governor Pataki has long supported the Preservation League’s efforts to secure this critical program for communities throughout New York,” said Jay DiLorenzo, President of the Preservation League. “The signing of this bill represents his continuing commitment to community revitalization and the
role that historic preservation can play in the economic revitalization of downtowns and neighborhoods.”
The Governor first included a State Income Tax credit incentive for historic preservation in his 2001-02 Executive Budget proposal and continued efforts to secure the program in subsequent budget proposals, including his most recent 2006-07 budget.
Under this legislation, State and National Register-listed owner-occupied residential structures in distressed areas are eligible for a New York State Income Tax credit covering 20% of rehabilitation costs, up to a credit value of $25,000. At this time, the program is limited to historic housing stock
located in distressed areas. A number of cities already have significant numbers of qualified housing stock, including Newburgh, Albany, Syracuse, Rochester, Buffalo Binghamton, Elmira and NYC.
The bill also includes incentives for historic commercial properties. National Register-listed or -eligible commercial properties that qualify for the Federal Rehabilitation Tax Credit would qualify for an additional New York State credit, covering 30% of the federal credit value in such projects, up to a value of $100,000. New York State is a national leader in use of the federal credit, and a state-level incentive will further catalyze federal credit usage and economic and rehabilitation activity.
“These two programs will provide meaningful new incentives for downtown and neighborhood renewal for every part of the state,” said Daniel Mackay, Director of Public Policy for the Preservation League. “There will also be significant economic benefits — studies show that rehabilitation spending
reinvigorates business districts and neighborhoods, stimulates construction activity, job creation, and tax revenues, and is proven to outpace the economic benefits of new construction in local and regional economies.”
Upon the Governor’s signature, the State Historic Preservation Office (SHPO) in the Office of Parks, Recreation and Historic Preservation (OPRHP) assumes responsibility for implementing the program, which will take effect January 1, 2007.