The Federal Historic Tax Credit was eliminated in the draft tax reform bill released by the House of Representatives Ways & Means Committee on November 2, 2017.
Text of the tax reform bill (H.R. 1) which repeals the historic rehabilitation tax credit program.
Advocacy Video
Our Executive Director, Nicholas Redding, and Director of Engagement, Elly Cowan, recorded a quick video on the issue and how advocates can still make a difference.
Tax credit impact in Maryland
In Maryland, since 2001, a total of 505 federal historic tax credits projects have been certified, resulting in over $2 billion in total investment in Maryland’s historic communities. In turn, these restored buildings increase local property tax revenue which supports better roads, schools and healthcare. Without this credit, scores of buildings would languish and would be unlikely to be redeveloped.
Current situation: Urgent Action Required
The Historic Tax Credit was not included in the tax reform bill released on November 2, 2017.
While extraordinary efforts have been made with members of the Ways and Means committee members, Chairman Brady held firm with his plan to release a bill that mirrors the instructions laid out by the “Group of Six” to only include the Low-Income Housing Tax Credit and the Research & Development Tax Credit.
The House of Representatives Way and Means Committee is expected to begin deliberations on this bill no later than November 6, with a House floor vote expected by mid-November. The Senate is now working on a similar version.
Meanwhile, the recent passage of a budget by the Senate created a path for that body to pass a tax reform bill with only a simple majority of 51 votes.
Without immediate action, it is now a very likely that the preservation community will lose the Historic Tax Credit. Preservationists are urged to contact their House of Representatives members and ask for them to use their voice to advocate for the credit to be added back to the final House bill.