The historic tax credits are one of Missouri’s best economic development tools. And they are once again under attack in the state legislature.
Some who argue to limit historic tax credits have the impression that the program is only good for big projects in the major cities and that most of those have been completed. An article published in the article in the St. Louis Post Dispatch in April, for example, noted that one developer believes the program could be cut without damage because:
“Most of the money spent on historic tax credits paid to fix up big downtown buildings, and there just aren't that many buildings left undone.” Developer suggests cutting historic tax credits” St. Louis Post Dispatch, 4/24/11.
Many of us that have seen the impact of the program in outstate Missouri would argue that point. The map of National Register sites below shows how many Missouri communities have properties eligible for historic tax credit-leveraged redevelopment. Many more are just learning of the potential benefits. This is not the time to limit such an effective economic stimulus.
Statistics from FY2010 show how well the program is working. Tax credits awarded in FY10 reflect private investment that was taking place during the worst of the recession.
Here’s what historic tax credits did for Missouri during the recession:
Credits issued in FY2010 accounted for $632,894,262 in redevelopment, 1,571 jobs (not counting construction jobs), and 1,817 new housing units. -Department of Economic Development Statistics.
It should also be noted that, because not all project costs are eligible for the 25% credit, state historic tax credits accounted for just 16% of that total, and as always, credits were not issued until after the buildings were put into service.
Documents of interest:
Don’t know your legislator’s name or contact information? You can find it at http://www.moga.mo.gov. |
