Modernizing The Historic Preservation Tax Credit
Mr. Speaker, sometimes simple concepts are the most powerful. Since the beginning of my career, I have seen the power of historic preservation as a key component to a liveable community that is rich and varied, not just merely the historic…
Mr. Speaker, sometimes simple concepts are the most powerful.
Since the beginning of my career, I have seen the power of historic preservation as a key component to a liveable community that is rich and varied, not just merely the historic character, but the mixed uses, architectural diversity, human scale and function, economic development, jobs, and the creation of value.
Today, the National Trust for Historic Preservation will be announcing with their president, Stephanie Meeks, some of the most endangered places that we might lose, serving as a call to action. Our heritage matters.
That's why for over 35 years Federal Tax Code has granted special recognition to help with the cost of rehabilitating historic properties, and for good reason. Over 37,000 historic properties have been rehabilitated, have leveraged $90 billion in investment, and created 2 million jobs.
Historic preservation is good for the soul. People love the enhancement of historic properties, neighborhoods, and districts. It directly links people to who they are, helping us understand and appreciate our roots. It is very important that most people also appreciate historic preservation. That's why it serves as a magnet for tourists and other investors so that surrounding properties and neighborhoods can be strengthened.
It also strengthens the economy. The investment and its ripple effects create more tax revenue and avoid the cost of rundown property and blight. As a local official, for years I learned firsthand that it is hard and expensive to deal with deterioration of the building stock in the neighborhoods in which they are located.
Historic preservation is the best option for the environment. Recycling a building usually has more net environmental benefit than a LEED-certified new building.
Historic preservation strengthens the community. A varied streetscape with a mix of uses makes that community safer and more resilient the same way that a forest that is composed of a variety of different tree species is more resistant to fire and disease than a monoculture of a single species. Historic preservation avoids that monoculture of the built environment that is numbing to the soul and depressing to the economy, which is subject to decline in the future as the entire area ages and deteriorates at the same time. We're watching this phenomenon on display in communities across the country as first- and second-tier suburbs deteriorate.
As I mentioned at the beginning, Historic Tax assistance has been in the Tax Code since 1976. That's why it's important with all the justifiable pressure and concern to reform and simplify the Tax Code that we must retain tools for historic preservation. Indeed, I think it's time to modernize the historic property tax credit to reflect the many changes since 1976. Some of the most profound adjustments were made during the administration of Ronald Reagan, but it's been over 25 years since the provisions were addressed comprehensively.
We need to recognize the difficulty with the current investment climate that makes it more difficult for people to take advantage of the tax credit as well as opportunities going forward to maximize the capacity for this important program. That's why I have introduced, with my Republican partner, Congressman Aaron Schock, H.R. 2479. It would provide more benefit to smaller-scale, Main Street rehabilitation. There will be a 10 percent bonus for significantly enhancing energy conservation and special incentives that can be used in tandem with the 33 historic tax credit programs in individual States across America.
It's hard to think of a better value for strategic investment in communities that provide a sense of place in history with the creation of jobs and wealth. A modernized historic preservation tax credit will be a key ingredient for years to come--a building block for a livable community where families are safe, healthy, and economically secure. I urge my colleagues to join me in supporting this important modernization of the historic preservation tax credit.