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Governor
Cuomo Announces New York State Led Nation in
Investments
to Revitalize Historic Properties Statewide
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Rehabilitation
Tax Credit Spurs Over $3 Billion of
Investment
in Historic Properties Since 2013
Two-Thirds of
the Projects Help Revitalize Historic
Commercial Centers
in Upstate New York
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Investment
Complements “Finger Lakes Forward”, “CNY Rising and Southern Tier Soaring”,
Regional
Blueprints Aimed at Growing the Economy and Creating New Opportunities
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Albany,
NY – April 2017 / Newsmaker Alert / Governor
Andrew M. Cuomo recently announced that in 2016, New York State led the
nation in the number of completed historic property revitalization projects
using rehabilitation tax credit programs. Since the Governor signed legislation
to bolster the state’s use of rehabilitation tax credits in 2013, the state
and federal program has spurred $3 billion of investment in historic commercial
properties. In 2016, $748 million in investments was generated by the state
and federal credit to revitalize historic buildings throughout the state.
“Rehabilitation
tax credits provide a valuable incentive to invest in underutilized historic
buildings and transform them into cornerstone landmarks for communities
across New York,” Governor Cuomo said. “These numbers prove that this program
is an effective economic development tool and we will continue our efforts
to preserve this state’s historic properties and drive growth throughout
the process.”
State
officials announced the tax credit milestones at the 2017 New York Statewide
Preservation Conference, held in historic Sibley Square, a $200 million
revitalization project in the heart of downtown Rochester. Sibley Square
is one of 88 commercial redevelopment projects in the Finger Lakes to leverage
the rehabilitation tax credit since 2013. More than two-thirds of these
projects are located in upstate New York communities, complementing the
Finger Lakes Forward, Central NY Rising and Southern Tier Soaring economic
initiatives, which are working to transform regional economies through
public-private partnerships.
The
state rehabilitation tax credit further incentivizes the federal rehabilitation
tax credit program. Both credits offer a 20 percent tax credit for qualified
rehabilitation expenditures for the owners of income producing properties
listed or in the process of listing on the New York State and National
Registers of Historic Places. While the state credit has been available
in various forms since 2007, its limits made developers reluctant to use
either the federal or state credit for riskier projects in upstate New
York.
In
2013, Governor Cuomo signed legislation to improve the credit by enabling
a property owner to partner with investors who do not have New York State
tax liability and take the credit as a refund. The ability to take a refund
helped expand the pool of investors willing to participate in New York
State projects. In addition, the legislation signed by the Governor extended
the program through 2019, which helped remove uncertainty about the program’s
future.
In
federal fiscal year 2016 alone, the State
Historic Preservation Office (SHPO) approved $732 million commercial
rehabilitation projects that are now in or moving into the construction
phase, known as Part 2 applications, and closed out the review of an estimated
$748 million worth of completed rehabilitation projects, known as Part
3 applications – more than any other state. Since 2013, SHPO has approved
more than 300 Part 2 applications to use the credit to rehabilitate historic
structures. Collectively, the projects have created more than 5,500 units
of new housing, including 1,900 units of low- and moderate-income housing.
More than 200 of the 300 Part 2 applications are for development projects
in upstate.
Rose
Harvey, Commissioner of the Office of Parks, Recreation and Historic Preservation,
said. “The historic preservation tax credit programs have revitalized hundreds
of landmark buildings across New York State, created thousands of local
jobs for skilled craftspeople, and has stimulated our economy while instilling
pride of place among New Yorkers. Our historic built environment is a remarkable
example of our state’s dynamic role in our nation’s history. With developers
and property owners rehabilitating the assets from our past, the historic
tax credits are helping to create a pathway to New York State’s future.”
Acting
Commissioner of Taxation and Finance Nonie Manion said, “The credit for
Rehabilitation of Historic Properties provides added incentive to restore
buildings that hold special significance to our state and local communities.
Along with other revitalization initiatives, this tax credit can help spur
development and jobs, as well as breathe life back into neglected landmarks.”
NYS
Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “The
historic preservation tax credits work in conjunction with other public
and private resources to restore the character of neighborhoods while creating
much-needed affordable housing,” said. “The historic tax credits are an
important component of the work we do. Under Governor Cuomo’s leadership,
HCR is working with partners and putting resources like this to work reconnecting
neighborhoods, restoring vacant or underutilized buildings, and breathing
new life into communities.”
Jay
DiLorenzo, President of the Preservation League of New York State, said,
“Historic rehabilitation tax credits have been instrumental in attracting
investment to long-vacant historic properties, from neighborhood schools
to mills and factories. Projects in our state are able to access not only
New York State rehabilitation tax credits but federal tax credits – for
up to 40% of their qualified rehabilitation expenses. This helps developers
balance risk and reward when taking on challenging renovation projects,
and ultimately benefits all New Yorkers.”
Wayne
Goodman, Executive Director, The Landmark Society of Western New York,
said, “There is not a more effective tool in connecting economic and community
revitalization with our enduring heritage than the historic rehabilitation
tax credit program. The Landmark Society of Western New York works tirelessly
to not only facilitate development projects that utilize these credits,
but to also lead efforts in creating National Register listings that act
as the primary gateways for these credits and subsequent economic benefits.
These tax credits are absolutely critical in sustaining preservation’s
vital role in economic development.”
Peg
Breen, President of The New York Landmarks Conservancy, said, “The Federal
and State preservation tax credits have helped large landmarks like Harlem’s
Apollo Theater. And we have helped a dozen moderate income homeowners in
Brooklyn, Upper Manhattan and Jackson Heights receive state credits.”
Regional
“Part 2” tax credit project designs approved by SHPO from 2013 to the present
are as follows:
-
Western
New York – 88 projects approved identifying $532.2 million in qualified
rehabilitation costs.
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Finger
Lakes – 29 projects approved identifying $289.7 million in qualified
rehabilitation costs.
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Southern
Tier – 32 projects approved identifying $113.6 million in qualified
rehabilitation costs.
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Central
New York – 27 projects approved identifying $272 million in qualified
rehabilitation costs.
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North
Country – 10 projects approved identifying $35.5 million in qualified
rehabilitation costs.
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Mohawk
Valley – 8 projects approved identifying $40.4 million in qualified
rehabilitation costs.
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Capital
Region – 63 projects approved identifying $268 million in qualified
rehabilitation costs.
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Mid-Hudson
Valley – 26 projects approved identifying $43.9 million in qualified
rehabilitation costs.
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New
York City/Long Island – 55 projects approved identifying $1.39 billion
in qualified rehabilitation costs.
Tax
credit program
Owners
of income producing real properties listed on the National Register of
Historic Places may be eligible for a 20 percent federal income tax credit
for the substantial rehabilitation of historic properties. The final dollar
amount is based on the cost of the rehabilitation. The work performed must
meet the Secretary of the Interior’s Standards for Rehabilitation and be
approved by the National Park Service. Owners of income producing properties
that have been approved to receive the 20 percent federal rehabilitation
tax credit automatically qualify for the additional state tax credit if
the property is located in a federal census tract that is identified as
a Qualified Census Tract, having a median family income at or below the
State Family Median Income level. Owners can receive an additional 20 percent
of the qualified rehabilitation expenditures up to $5 million.
Source
Document
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Contact:
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Office
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