AIA Louisiana Urges Support of Historic Tax Credits
We urge your support for HB 387 and SB 150, both of which will extend our state’s Historic Rehabilitation Tax Credits, so that they can continue delivering important impacts throughout our entire state, from small towns to big cities. Louisiana is consistently among the top states nationally in historic rehabilitation, in large part due to our highly effective state Historic Rehabilitation Tax Credits, and it is important to continue that success.
Our state’s Historic Rehabilitation Tax Credits are proven successes that induce significant private capital investment, create jobs, revitalize communities, increase economic development, and strengthen our state’s authenticity. Each of these impacts is valuable at the state, parish, and municipal levels. The Louisiana incentive for the rehabilitation of historic structures has been studied and found to create a net present value of between $2.77 and $3.22 in new state tax revenue for every $1.00 of credit used, which makes the credit a proven revenue generator for our state. The credit is not issued until well after all construction spending has occurred, and the state earns new tax revenue equal to the cost of the credit 2.2 years into the operational phase. Projects continue generating new economic impacts and tax revenue well into the future.
As residents, business owners, concerned citizens and Louisianans, we know you have seen first-hand the catalytic impact that the rehabilitation of historic buildings has on communities throughout our state, including many small towns and rural areas. There are numerous Louisiana success stories of the rehabilitation of just one historic building on a town’s main street sparking real and impactful revitalization in the surrounding district.
Due to upcoming sunsets, our state’s highly effective Historic Rehabilitation Tax Credits need to be extended during this legislative session. We are urging your full support for HB 387 by Speaker Pro Tem Walt Leger and SB 150 by Senator JP Morrell, both of which will extend the sunset for the credits so they can continue delivering impactful results for our state, parishes, cities, and towns.
PLEASE contact any legislators that you know personally. We will send out an action alert when these bills are scheduled for committee.