Historic Tax Credits: KY HB 456 Creates Jobs, Revitalizes Communities, Strengthens State Economy
Posted on
February 27, 2019
HB 456, sponsored by Rep. Tommy Turner (Pulaski/Laurel Counties) and Rep. Adam Bowling (Bell/Harlan Counties) proposes a significant increase in Kentucky’s state Historic Tax Credit, vital to the revitalization of communities throughout the Commonwealth and our state economy.
KEY POINTS – HB 456
*Raises current program cap from $5Million to $30Million annually
*Maintains 20% credit for income producing/commercial properties
*Maintains 30% credit for owner-occupied residential properties
*Maintains transferability of credit
BENEFITS – HB 456
*Allows more projects to benefit statewide
*Helps more communities with revitalization incentives
*Stimulates economy with increased property, sales, payroll taxes
*Makes KY more competitive with bordering states
*Increases appeal to out-of-state developers, businesses
KY’s Current Historic Tax Credit Program
*Enacted into law in 2005, a low risk-high return program
*Administered by the Kentucky Heritage Council
*Available to all 120 counties and communities of all sizes
With 3,200 historic districts, sites and structures encompassing more than 42,000 historic properties in all 120 counties, it’s important that we capitalize on these valuable assets!
*Since 2005:
$517 Million of private funds invested in historic buildings, leveraged through $39.7 Million in credits
871 Buildings rehabilitated
17,475 Jobs created
How it Helps Communities
*Provides credit for owner-occupied homes, unlike Federal HTC
*Benefits state immediately with tax revenue during construction
*Returns more to state treasury than it costs
*Returns vacant, underutilized, endangered buildings to tax rolls
*Boosts tax revenues – sales, payroll, property
*Provides income for community improvements
*Serves as catalyst for additional local investment
*Creates construction and permanent jobs
*Encourages revitalization in blighted areas
*Encourages adaptive reuse of buildings that risk demolition
*Reverses economic decline in central business districts
*Helps spur redevelopment in surrounding areas
*Restores civic pride to communities
*Provides positive return on investment for owners and state
In 2018, the Kentucky Heritage Council received 115 applications from 20 counties, with 111 approved pending completion, representing $106,128,944 in proposed private investment.
The Kentucky Heritage Council administers the state’s Historic Tax Credit. Download their Fact Sheet on the credit, how it works and how HB456 will help here KY HTC 2019 KHC Fact Sheet.