At this very moment, the Historic Tax Credit (HTC) is threatened by the Senate’s Economic Development committee substitute for SB45, which will cap the Historic Tax Credit at $150 million. Such a cap will undoubtedly substantially reduce the effectiveness of the program, which relies on freely available credits in order to function.
- The Historic Tax Credit serves as an economic engine to the state. Each year, the benefits of the HTC far exceed direct cost, boosting Missouri’s economy. $4 MUST BE SPENT BEFORE $1 OF CREDIT IS ISSUED and the state gets more: $1.50 in state and local taxes for every $1 spent in credits plus the employment impact on local communities. (MDNR/Rutgers study, 2001)
- Missouri needs jobs. This program creates construction jobs. The HTC has driven down unemployment by creating over 40,000 jobs since its inception in 1998. (Rypkema report 2008)
- The Historic Tax Credit program serves as a model for the country. Missouri has become a leader in generating jobs with historic preservation as a direct result of the HTC program. It is the ultimate in GREEN DEVELOPMENT PROGRAMS; the Wall Street Journal declares that Missouri’s HTC is the “BEST IN THE NATION”.
- Capping the Historic Tax Credit will damage our communities, our banks, and employment. Not only will such action potentially halt current projects, but it will stop the purchase of buildings and banks providing loans for those buildings. It could potentially hurt the banks involved in project loans and continue the already deep economic downward spiral.