Preserving the Past, Bulding the Future: Historic Rehabilitation Tax Credits at Work in Virginia
The commonwealth's Historic Rehabilitation Tax Credit (HRTC) program has played an essential role in the preservation of thousands of historic properties since its inception 20 years ago. The program has issued $1.2 billion in tax credits since 1997, reimbursing 25 percent of eligible rehabilitation expenses as tax credits. Those tax credits have stimulated $4.5 billion in private investment since 1997. Although the $1.2 billion in tax credits issued represents revenue not immediately realized by the Commonwealth, much of the $4.5 billion of private investment may not have otherwise occurred. VCU’s L. Douglas Wilder School of Government and Public Affairs analyzed the Historic Rehabilitation Tax Credit program to better understand its costs and benefits to Virginia, its communities, and its historic buildings. Here's full 94-page report. No time for that? Read the Executive Summary (4 pgs) or this Illustrated Summary.
Also of note, in 2017 Preservation Virginia, in partnership with the Home Builders Association, undertook a deep-dive study into the economic benefits of the historic rehabilitation tax credit program in Virginia. Baker Tilly Virchow Krause, LLP (Baker Tilly), a nationally recognized, full-service accounting and advisory firm, studied the economic impact of 21 projects completed in 2014. Their findings demonstrate the Historic Rehabilitation Tax Credit Program doesn't just preserve the places that make Virginia unique. In 2014 alone it resulted in:
- $467 million in economic output
- supported 9,960 jobs
- generated $3.50 for every $1 invested through the first three years
The study can be found here on the Preservation Virginia website.