Page 8 - Winter 2018 Digital inLEAGUE Vol.41 No.01

Preservation, Business leaders call for changes to Historic Tax
Credits

by Preservation League of New York State

ALBANY, NY (02/26/2018) (readMedia)-- The
Preservation League of New York State is bringing
preservation and business leaders from across New York
State to the Capitol on Tuesday to ask legislators to
support key changes to New York’s Historic Tax Credits,
including:
• Decoupling the NYS Historic Tax Credit from the
Federal Historic Tax Credit to ensure that the NYS
credits may be taken all at once rather than over 5
years; and
• Extension - through December 31, 2024 - of the NYS
Historic Commercial Properties Tax Credit and NYS
Historic Homeownership Rehabilitation Tax Credit.
Assemblymember Carrie Woerner (D-Round Lake) and
Senator David J. Valesky (D-Oneida) have introduced
legislation to accomplish these goals (A.9882 / S.7648). Troy Savings Bank Music Hall, Troy, NY
The League is urging the Assembly and Senate to include the language from these measures in Joint Legislative
Budget Bills which will be drafted in March.
“New York leads the country in Historic Tax Credit-related investment,” said Jay DiLorenzo, president of the
Preservation League of New York State. “Since they were established in 2007, the New York State Historic Tax
Credits have proven to be a cost-effective economic development and historic preservation incentive, and
have served as a national model for state historic tax credits. Unfortunately, changes to the Federal Historic
Tax Credit and the anticipated sunset of this program in 2019 have created uncertainty that threatens projects
already in the pipeline. We’re asking for changes that will restore confidence in the program and foster
continued reinvestment in every corner of New York State.”
The Federal Tax Cuts and Jobs Act of 2017 requires that the Federal Historic Tax Credit be taken over five years.
Current estimates place the impact of this change at a 15% credit value reduction. Separating the state credit
from the federal credit will ensure that the credit retains its full value in New York State.
The New York State Historic Tax Credits are slated to expire at the end of 2019. Extension in the 2018 budget will
ensure that projects currently under consideration for investment and rehabilitation continue to move forward
with investor and developer confidence that the program will remain in place.
“The New York State Historic Tax Credit and the Historic Homeownership Rehabilitation Tax Credit have been
key tools in driving job growth and economic development in Upstate while preserving architecture unique to
each community. Extension of these tax credits and decoupling them from federal law are essential to ensuring
that these projects continue uninterrupted across the state,” Senator David J. Valesky said.
“As the Assembly representative for much of Saratoga and Washington counties, whose communities are
steeped in American history and feature many historical buildings, I am proud to be an advocate for the
practice of historic preservation,” said Assemblywoman Carrie Woerner. “My new bill, A.9842, would encourage
more organizations to choose historic preservation by increasing the maximum award amount for the New
York State Historic Rehabilitation Tax Credit and protecting the tax credit from any tax changes at the federal
level. I am grateful to the Preservation League of New York State for their leadership around issues of historic
preservation and for their partnership in drafting this new legislation.”
“Our aging cities, such as Syracuse, require restoration and rehabilitation,” said Assemblyman William B.
Magnarelli, D-Syracuse. “The New York Historic Tax Credits have allowed developers to aid our cities in that
regard. It is imperative that these credits continue so that developers have confidence in this program into the
future.”
“I have seen first-hand the impacts of the Historic Tax Credit legislation not only in my hometown but throughout
the 108th Assembly District.,” said Assemblymember John T. McDonald III. “New life has brought about artful and
thoughtful restoration to properties thought to be destined for demolition. Additionally, we have seen growth
in the tax base of our urban areas and a new focus on supporting the skilled workforce behind the masterful
PAGE 6 | Winter 2018 INLEAGUE