United States Senator Ben Cardin joined with Preservation Maryland Executive Director Nicholas Redding and Maryland State Senator Bill Ferguson to host a round table discussion on the impact of the recent federal tax overhaul and the future of historic preservation.
The event, which was held at the AIA Maryland headquarters in Annapolis, was organized by Preservation Maryland and Senator Cardin’s office to highlight the important preservation initiatives taking place in Maryland. After a quick introduction by Preservation Maryland Executive Director Nicholas Redding, Senator Ben Cardin, a long-time advocate of historic preservation, kicked off the discussion with a recap of the tax overhaul which has negatively impacted the value of federal Historic Tax Credits.
Senator Cardin introduces his amendment to restore the Historic Tax Credit during the 2017 tax reform debate.
federal credits retained, but weakened
Senator Cardin noted that previously, the Historic Tax Credit (HTC) was distributed in its entirety at the end of the project. Under the new law, the credit is distributed over a much longer five year period, increasing the lending costs associated with large-scale redevelopment projects. Accountants familiar with the credit estimate that this change has reduced the value of the federal historic tax credit by as much as 20%.
Senator Cardin also explained bi-partisan legislation he introduced with fellow United States Senator Susan Collins of Maine, which would vastly improve on the existing federal tax credit and provide greater support for smaller, “main street” deals. The senator expressed his continued optimism for that legislation and requested those in attendance continue to advocate.
working to improve maryland’s state historic tax credit
Maryland State Senator Bill Ferguson then offered his updates from Annapolis and summarized his work on two pieces of legislation championed by Preservation Maryland which would:
- Increase funding of the state HTC from $9 million to $15 million annually and,
- A policy-focused bill that would increase support to affordable housing projects by an additional 5% and make the credit more effective and efficient in order to incentivize more projects.
Senator Ferguson also underscored Senator Cardin’s comments about the value of preservation to community growth and the often overlooked costs that local and state governments reap when development is focused on existing communities instead of sprawling, greenfield development.
advocacy is our only option
Following the successful event and lively discussion, Preservation Maryland Executive Director Nicholas Redding explained,
Events like this are why Preservation Maryland exists. Our job is to bring together the leaders, decision-makers and advocates to help advance pro-preservation policy. We aren’t satisfied with the status quo and are committed to rolling-up our sleeves to accomplish the necessary work to advance this cause. Moving forward, advocacy is our only option and we are optimistic about the future of our work with the stalwart support of thousands of Marylanders and legislators like Senator Cardin and Senator Ferguson.