The program has been around since 1976 and has attracted more than $84 billion in new private capital to the historic cores of cities across the U.S., according to the U.S. Office of the Comptroller of the Currency.
In order to qualify, a building must be income producing or used in a trade or business, and the cost of rehabilitation must exceed the per-rehabilitation cost of the building.
“Those are just three projects and they have invested over $286 million in our downtown,” said Matt Gladdek, DDI’s director of policy and planning. “Additionally the Venable Center, Golden Belt, Unscripted Hotel, the Durham Hotel, and many other smaller projects have utilized the credit, and whose rehabs would not have been financially feasible without it.”
Without tax breaks, downtown Durham’s renaissance, with its swanky hotels and new skyscrapers, possibly wouldn’t have happened.
Whether the Historic Tax Credit is ultimately eliminated will be determined by whether it can make it through the House by Thanksgiving and then through the Senate as well.
The House GOP’s tax plan would eliminate federal investment tax credits for historic preservation projects as part of the Republican-led attempt to simplify the country’s tax code.