IBJNews

Preservationists seek expanded tax credit program

Back to TopCommentsE-mailPrintBookmark and Share

Advocates of historic preservation made a pitch Monday for an expanded tax credit program to help developers invest in older buildings – particularly in small downtowns.

Marsh Davis, president of Indiana Landmarks, told lawmakers that the state’s current Historic Preservation Tax Credit program doesn’t work because a backlog means investors who complete projects today can’t claim the financial incentive for at least a dozen years.

“We don’t even talk about the state credit anymore because we consider it totally dysfunctional,” Davis told the Commission on State Tax and Financing Policy during a meeting Monday at the Statehouse.

The problem is that the tax credit is capped at $450,000 a year, Davis said. And because the demand is much greater, there’s a waiting list to claim the credits.

That means investors of projects approved for the program can’t recoup their money for a dozen years. Supporters of a program expansion say that gives few incentives for investors to restore historic properties.

Rep. Ed Clere, R-New Albany, has been working to expand the program for several years. On Monday, he told the tax commission that raising the cap and dedicating some of the money for projects in rural areas would help reinvigorate preservation in the state.

“I really believe – especially going into our (Indiana) bicentennial in 2016 that the time is right to make this tax credit functional again,” Clere said.

Earlier this year, the House passed legislation to expand the tax credit. But so far, senators have not been amenable to the proposal. Senate Tax Chairman Brandt Hershman, a Buck Creek Republican who leads the study commission, said Monday he’s not sure the credit is actually spurring much development, especially because a federal tax credit is also available.

But Davis said the proposed changes are geared at smaller projects in smaller communities that might not qualify for the federal program or might be too low-budget to make the expense of seeking the federal credit worthwhile.

“This hits the Main Street component of Indiana we’re trying to reach,” he said.

The Commission on State Tax and Financing Policy is studying a number of state tax credits before the 2014 session General Assembly and could make recommendations for legislation later this year.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. By Mr. Lee's own admission, he basically ran pro-bono ads on the billboard. Paying advertisers didn't want ads on a controversial, ugly billboard that turned off customers. At least one of Mr. Lee's free advertisers dropped out early because they found that Mr. Lee's advertising was having negative impact. So Mr. Lee is disingenous to say the city now owes him for lost revenue. Mr. Lee quickly realized his monstrosity had a dim future and is trying to get the city to bail him out. And that's why the billboard came down so quickly.

  2. Merchants Square is back. The small strip center to the south of 116th is 100% leased, McAlister’s is doing well in the outlot building. The former O’Charleys is leased but is going through permitting with the State and the town of Carmel. Mac Grill is closing all of their Indy locations (not just Merchants) and this will allow for a new restaurant concept to backfill both of their locations. As for the north side of 116th a new dinner movie theater and brewery is under construction to fill most of the vacancy left by Hobby Lobby and Old Navy.

  3. Yes it does have an ethics commission which enforce the law which prohibits 12 specific items. google it

  4. Thanks for reading and replying. If you want to see the differentiation for research, speaking and consulting, check out the spreadsheet I linked to at the bottom of the post; it is broken out exactly that way. I can only include so much detail in a blog post before it becomes something other than a blog post.

  5. 1. There is no allegation of corruption, Marty, to imply otherwise if false. 2. Is the "State Rule" a law? I suspect not. 3. Is Mr. Woodruff obligated via an employment agreement (contractual obligation) to not work with the engineering firm? 4. In many states a right to earn a living will trump non-competes and other contractual obligations, does Mr. Woodruff's personal right to earn a living trump any contractual obligations that might or might not be out there. 5. Lawyers in state government routinely go work for law firms they were formally working with in their regulatory actions. You can see a steady stream to firms like B&D from state government. It would be interesting for IBJ to do a review of current lawyers and find out how their past decisions affected the law firms clients. Since there is a buffer between regulated company and the regulator working for a law firm technically is not in violation of ethics but you have to wonder if decisions were made in favor of certain firms and quid pro quo jobs resulted. Start with the DOI in this review. Very interesting.

ADVERTISEMENT