WASHINGTON, D.C. – An initiative designed to attract economic investment to historic buildings and districts in rural communities is being introduced to Congress by senators Mark Warner (D) of Virginia and Shelley Moore Capito (R) of West Virginia.
The Rural Historic Tax Credit Improvement Act will significantly reduce financial burdens for rural homeowners and developers in historic districts and where buildings are otherwise listed on the national register.
Capito said the act will help rural communities that otherwise must compete with high-traffic development areas. As early as the 1940s, many towns across America began losing commerce to larger cities along major transportation routes.
“Being a rural state shouldn’t mean losing out on private investment incentives like tax credits to help us preserve our communities’ history and revitalize local economies,” Capito said.
Warner echoed his colleague's focus on economic development in rural America, banking on the unique strengths of each town or neighborhood.
"By expanding access to historic tax credits, we can preserve our nation’s rich heritage while incentivizing the construction of more affordable housing," he said.
"I’m proud to join Senator Capito in introducing this legislation to bring new life to abandoned buildings and grow the housing stock in rural communities."
Through improvements to the credit, rural historic tax credit projects will be more feasible and result in more projects being completed in rural areas and states.
According to Capito's office, the effort will:
- Make credit projects in rural areas eligible for an increased credit from 20% to 30%.
- Include an additional increase in the credit to 40% for affordable housing creation.
- Allow the credit to be used in addition to the Low-Income Housing Tax Credit.
- Allow small rural projects to claim the credit in the first year of use.
- Allow transferability of the credit to a third-party.
- Eliminate basis adjustment to simplify credit transaction.
Capito thanked a consortium of West Virginia development officials who helped her understand the economic potential of the credits.
“I have enjoyed working with the dedicated group of West Virginians who brought this issue to my attention and who provided important perspectives during the creation of this legislation," she said.
Danielle Parker, executive director of the Preservation Alliance of West Virginia, which helped spearhead the act, said its success can help reform the American landscape.
"Rural communities face uphill battles to preserve historic assets, grappling with significant challenges to utilize the historic rehabilitation tax credit due to disproportionately high cost burdens," Parker said.
She said the bill will level the playing field, "bringing small-scale rehabilitation projects on par with larger, more attractive developments."
In addition to the Preservation Alliance of West Virginia, the bill is also supported by Main Street America, the Historic Tax Credit Coalition, and the National Trust for Historic Preservation.
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