Share:
Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | April 11, 2024 01:44 PM |
|---|---|
| From: | Senator Nikil Saval and Sen. Frank A. Farry |
| To: | All Senate members |
| Subject: | Strengthening Pennsylvania’s Historic Preservation Tax Credit Program |
| With America’s semiquincentennial rapidly approaching, protecting our historic fabric will cement our Commonwealth’s position as the keystone of American history. In the near future, we will introduce legislation that strengthens Pennsylvania’s Historic Preservation Tax Credit Program. Established in 2012, the program has encouraged private sector investment in the rehabilitation and re-use of many irreplaceable historic buildings across the Commonwealth. The legislation will increase the program’s annual cap, putting Pennsylvania in a more competitive position with neighboring states. Every state that borders Pennsylvania has a higher aggregate cap; New York and West Virginia have no annual cap, Ohio has $120 million through 2024 and then $60 million onwards, New Jersey has $50 million, Maryland has $20 million, and Delaware has $8 million. Pennsylvania’s current $5 million cap is the fourth lowest of 39 enacted state programs. A larger cap would encourage more developers to invest in and repurpose buildings that currently sit underutilized or vacant. A $1,000,000 investment in a historic rehabilitation project generates 6.4 direct jobs and 5.6 indirect/induced jobs in Pennsylvania. The resulting wages represent $391,766 direct income and $290,283 indirect/induced income. An additional $853,514 of economic activity is generated elsewhere in the Pennsylvania economy from these jobs. The bill also resolves a technical issue, ensuring that syndicated partnerships are eligible for the program. Since 2019, the Department of Revenue flagged these applications as a “disregarded entity of a nonprofit group” and rejected them. Many affordable, senior housing, commercial, and social service projects have been funded this way throughout the Commonwealth. No other state has made this determination, and the language in this bill mirrors that of several states that allow nonprofits to be part of a development group for a historic preservation project. Please join us in strengthening Pennsylvania’s Historic Preservation Tax Credit Program, an important but currently underutilized economic development tool. |
Introduced as SB1259
Memo Updated: April 11, 2024 01:45 PM