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. The $104K to CRC would go toward debts service on $486M of existing debt they already have from other things outside this project. Keystone buys the bonds for 3.8M from CRC, and CRC in turn pays for the parking and site work, and some time later CRC buys them back (with interest) from the projected annual property tax revenue from the entire TIF district (est. $415K / yr. from just this property, plus more from all the other property in the TIF district), which in theory would be about a 10-year term, give-or-take. CRC is basically betting on the future, that property values will increase, driving up the tax revenue to the limit of the annual increase cap on commercial property (I think that's 3%). It should be noted that Keystone can't print money (unlike the Federal Treasury) so commercial property tax can only come from consumers, in this case the apartment renters and consumers of the goods and services offered by the ground floor retailers, and employees in the form of lower non-mandatory compensation items, such as bonuses, benefits, 401K match, etc.

  2. $3B would hurt Lilly's bottom line if there were no insurance or Indemnity Agreement, but there is no way that large an award will be upheld on appeal. What's surprising is that the trial judge refused to reduce it. She must have thought there was evidence of a flagrant, unconscionable coverup and wanted to send a message.

  3. As a self-employed individual, I always saw outrageous price increases every year in a health insurance plan with preexisting condition costs -- something most employed groups never had to worry about. With spouse, I saw ALL Indiana "free market answer" plans' premiums raise 25%-45% each year.

  4. It's not who you chose to build it's how they build it. Architects and engineers decide how and what to use to build. builders just do the work. Architects & engineers still think the tarp over the escalators out at airport will hold for third time when it snows, ice storms.

  5. http://www.abcactionnews.com/news/duke-energy-customers-angry-about-money-for-nothing

ADVERTISEMENT