It’s Time to Invest in NJ’s PastCourtenay MercerExecutive Director, Preservation New Jersey February 24, 2020The OpEd was originally published by NJ Spotlight.New Jersey’s past is its future — and preserving historic sites from our past is the best way to build a future for generations to come.The ... » Learn More about It’s Time to Invest in NJ’s Past
Historic Tax Credits
Thirty-five states have a historic preservation tax credit (HTC). New Jersey is not one of them. Without the historic preservation tax credit, New Jersey is missing out on a proven tool for economic growth and revitalization. Between 1978 and 2015, the National Park Service’s federal Historic Tax Credit for income-producing buildings led to $28.1 billion in federal tax receipts, a significant net gain over the $23.1 billion in allocated credits. States that have their own historic preservation tax credits see similarly strong returns on investment at the local level.
Preservation New Jersey and its partners have been advocating for a statewide historic tax credit program for decades. A statewide historic tax credit program will provide homeowners and commercial property owners with an economic incentive to help revitalize older neighborhoods and historic downtowns, create thousands of skilled jobs and reuse historic structures by providing a State tax credit for their rehabilitation. Similar tax credit programs in other states, such as Maryland and Missouri, have generated net tax revenue to the state. The historic rehab tax credit is an especially effective Smart Growth economic development tool to help restart investment in the housing market.
2018/19 NJ State Legislative Session
A1311 & S1740/S2031: “Historic Property Reinvestment Act”; provides credits against certain taxes for certain costs of rehabilitating historic properties.
The legislation authorizes an income tax credit for a portion of the rehabilitation costs of qualified historic owner-occupied residential and commercial properties.
- The bill was introduced in the Assembly and referred to the Agriculture and Natural Resources Committee on January 9, 2018. No hearings have been scheduled for the Assembly bill.
- A companion bill was introduced in the Senate and referred to the State Government, Wagering, Tourism & Historic Preservation Committee on February 28, 2018. The Senate bill was reported favorably out of the State Government, Wagering, Tourism & Historic Preservation Committee on October 18, 2019, and was referred to the Budget and Appropriations Committee. PNJ testified in favor of the legislation at this meeting. No further action has been taken on the Senate bill since October 2018.
- PNJ made statements in support of a historic preservation tax credit to the Murphy Transition Team in a December 15, 2017 Memo. Support for a statewide historic tax credit was included in then Governor-elect's Urban and Regional Growth Transition Report, and in a October 2, 2018 Economic Development Plan announcement by the Governor. The Governor subsequently released proposed alternative HTC legislation. PNJ, in collaboration with AIA-NJ and the National Trust for Historic Preservation, have reviewed the draft proposal and issued comments to the Governor's office and the NJ Economic Development Agency.
You can show your support for the Historic Preservation Investment Act by sending an e-mail or letter to your legislators, asking them to support and co-sponsor the bill.
In 2011, the New Jersey Senate and Assembly passed The Historic Property Reinvestment Act with strong bipartisan support. However, it was part of the Democratic package for economic development, and Governor Christie vetoed it. The 2011 attempt was the closest NJ got to enacting statewide historic tax credit legislation, as efforts in prior Legislative Sessions were unable to gain passage through both houses.
Historic Tax Credits Nationwide
Federal Historic Tax Credit
The federal Historic Tax Credit (HTC) was created in 1978 as an incentive to catalyze economic development through the restoration and reuse of America’s historic buildings. Since its inception, the HTC has been a widely used redevelopment tool, helping revitalize cities, towns and rural communities all across the country and to date has rehabilitated more than 42,000 buildings. More info
State Historic Tax Credits
Thirty-five states in the country offer credits against state taxes to provide incentives for the appropriate rehabilitation of historic buildings. In most cases these tax credits take a similar form to the very successful federal income tax credit for historic rehabilitation.
National Trust for Historic Places - State HTC Resource Doc (as of Sept 2018)
Historic Tax Credits – NJ Update Michael Hanrahan Principal, Clarke Caton Hintz February 1, 2020 “The National Trust for Historic Preservation envisions a future where leaders who make decisions impacting our built environment consider the reuse of historic buildings as an essential strategy to ... » Learn More about Historic Tax Credits – NJ Update
The "Historic Property Reinvestment Act” (A1311 & S1740/S2031) is scheduled to be heard on Thursday, October 18, 2018 by the the Senate State Government, Wagering, Tourism & Historic Preservation Committee. We feel this legislative session may just be the time to get this passed. The ... » Learn More about Policy Action Alert – NJ Historic Tax Credit
Dec. 15, 2017 - Preservation New Jersey, a statewide non-profit that advocates for and promotes historic preservation as a sustainable strategy to protect and enhance the vitality and heritage of New Jersey’s richly diverse communities, has made policy recommendations to Governor Murphy’s ... » Learn More about PNJ champions State HTC in letter to Murphy Transition Team