IBJNews

Preservation tax credit gets makeover in House bill

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana House is set to consider legislation that would shift the state’s historical preservation tax cut program into one that relies on grants instead.

House Bill 1215 – authored by Rep. Ed Clere, R-New Albany – would originally have expanded the tax credit from $450,000 to $10 million a year, an effort to boost its effectiveness and create move incentives for preservation projects.

But in the House Ways and Means Committee this week, lawmakers stripped the funding out of the bill and replaced the tax credit with a grant program.

Ways and Means Chairman Tim Brown, R- Crawfordsville, authored the change.

“We have not been doing a very good job with the current tax credit,” Brown said. “Tax credits decrease revenue coming into the state. The idea going forward is so we can have an honest balanced budget is to really look at this as an expense to the state.”

The current program – administered by the Department of Natural Resources – is backlogged because the tax credit caps at $450,000 per year. That means some projects approved for the program have been completed but can’t claim the tax credit until 2023. Supporters of a program expansion say that gives few incentives for investors to restore historic properties, especially since many of them are private developers.

Clere and other supporters of the program have been working to change that. Last year a similar bill failed in the Senate.

“This bill is important because it is focused on Main Street Indiana,” Clere said. “Every community large and small has historical buildings that were once part of the economic life of the community and could be again.”

Brown said he had tried in the past to increase the tax credit but said the state needed to get rid of the outstanding credits first. He said starting over with a grant program cleans “the ledger sheet, so to speak.”

Amy Levander, a lobbyist for Indiana Landmarks, a historic preservation group, said she is concerned about changing the bill from a credit to a grant because Brown included no funding in the bill. That means the program would compete against the state’s other spending needs next year, when lawmakers write the next two-year state budget.

Levander said she would like to see a study between sessions so the lawmakers can look at the implications of having a grant program versus a tax credit program.

“We are open to looking at options for putting in place something that will maximize state tax dollars to stimulate redevelopment in historical properties around the state,” Levander said.

The bill now moves to the full House for consideration.

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. I never thought I'd see the day when a Republican Mayor would lead the charge in attempting to raise every tax we have to pay. Now it's income taxes and property taxes that Ballard wants to increase. And to pay for a pre-K program? Many studies have shown that pre-K offer no long-term educational benefits whatsoever. And Ballard is pitching it as a way of fighting crime? Who is he kidding? It's about government provided day care. It's a shame that we elected a Republican who has turned out to be a huge big spending, big taxing, big borrowing liberal Democrat.

  2. Why do we blame the unions? They did not create the 11 different school districts that are the root of the problem.

  3. I was just watching an AOW race from cleveland in 1997...in addition to the 65K for the race, there were more people in boats watching that race from the lake than were IndyCar fans watching the 2014 IndyCar season finale in the Fontana grandstands. Just sayin...That's some resurgence modern IndyCar has going. Almost profitable, nobody in the grandstands and TV ratings dropping 61% at some tracks in the series. Business model..."CRAZY" as said by a NASCAR track general manager. Yup, this thing is purring like a cat! Sponsors...send them your cash, pronto!!! LOL, not a chance.

  4. I'm sure Indiana is paradise for the wealthy and affluent, but what about the rest of us? Over the last 40 years, conservatives and the business elite have run this country (and state)into the ground. The pendulum will swing back as more moderate voters get tired of Reaganomics and regressive social policies. Add to that the wave of minority voters coming up in the next 10 to 15 years and things will get better. unfortunately we have to suffer through 10 more years of gerrymandered districts and dispropionate representation.

  5. Funny thing....rich people telling poor people how bad the other rich people are wanting to cut benefits/school etc and that they should vote for those rich people that just did it. Just saying..............

ADVERTISEMENT