From Preservation Virginia, here are four truths about common misconceptions on Virginia’s Historic Rehabilitation Tax Credits (HRTC):
1. HRTC projects occur in almost every jurisdiction of the Commonwealth. It is not just a Richmond program. HRTC projects are transforming Danville, Wytheville, Lynchburg, Salem, Farmville and communities in almost every county in Virginia.
2. Big developers are not the majority benefiting from the program. Between 1997 and 2015, 45% of HRTC benefit projects had expenditures of $250,000 or less and 29% had between $250,000 and $1 million. Individuals, small businesses, churches and non-profits benefit. A very small percentage of projects are resold quickly and are typically foreclosed properties.
3. Across the board, users of the HRTC program say their project would not happen without the credit. That means the jobs and tax revenue associated with these rehabs would not benefit our economy.
4. Periodically sunsets and caps are discussed. HRTC projects take years from concept to completion. Discussions of sunsets and caps introduce uncertainty in the marketplace which slows investment and the resulting economic benefits. A 2012 JLARC study found that the HRTC program was effective.
Need some hard numbers? Share the VCU CURA and Baker Tilly executive summary findings or the full Baker Tilly report.
Keep on spreading the word about the effectiveness of the HRTC in protecting our architectural heritage!