Historic Tax Credits: KY Historic Tax Credit Impact Analysis, Baker Tilly Study
This report by Baker Tilly estimates the economic and fiscal impact of Kentucky’s Enhanced Historic Tax Credit enabling projects to claim the 20% award. The report examines the benefits of the program in terms of overall economic output, jobs created, tax revenue, and includes a cost-benefit analysis and pay-back schedule of the seven commercial, mixed-use projects that were approved and met the minimum requirements under the Enhanced Historic Tax Credit Program since July 15, 2014.
Cumulatively, the seven projects analyzed within this study have estimated total project costs of $305.2 million, QREs of $205.09 million and an estimated $33.8 million in EHTC. The estimated $33.8 million in EHTC will be paid out across four years following construction complete at roughly $8.45 million annually.
The Enhanced Historic Tax Credit is estimated to see a complete Return on Investment to the State of Kentucky tax revenue within the pay-out period of the EHTC generation of more than 3,4000 Full Time Employment jobs, and total economic output and wages in excess of $626.2 million at stabilization with construction period output and first year stabilization combined.