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PPS: Save Rhode Island’s Historic Tax Credits

The R.I. House Finance Committee did not include historic tax credits in the proposed budget fr next year. The Providence Presevation Society has issued the following call to action:


Act Now to Save Rhode Island’s Historic Tax Credits!

pps-logoLast year, the State Historic Tax Credit Program was reinstated, and 26 new projects are underway – including the rehab of the Tirocchi House on Broadway and the George C. Arnold Building in Downtown Providence!

However, there are 27 additional projects throughout the state still waiting to receive credits. Without funding for Historic Tax Credits, most of these projects will not happen. This would mean the loss of nearly $160 million in construction activity, an investment of jobs and revenue which our economy desperately needs. Rhode Island’s Historic Tax Credit program has an excellent track record. From 2002 to 2008, it generated $1.3 billion in new private investment in Rhode Island’s real-estate economy. This resulted in 22,000 construction jobs, 6,000 permanent jobs, and total wages of more than $800 million.

Last week, the House Finance Committee declined to recommend funding for this program. The House will take up the budget this week; only a groundswell of voices from around the state will convince representatives to include Historic Tax Credits in the budget. Time is short – immediate advocacy is needed.

PPS supports Preserve Rhode Island’s efforts to restore the State Historic Tax Credit. Contact your Representative in General Assembly to ask them to urge the Speaker of the House, Nicholas A. Matiello, and the Chairman of the House Finance Committee, Raymond E. Gallison, to pass a budget that includes funding for Historic Tax Credits. Email or call your Representative before Wednesday, June 11th (they are expected to act on the budget on Thursday).

We also urge you to contact Speaker Matiello’s office directly:

Nicholas Matiello
Speaker
House of Representatives
State House, Room 323
Providence, RI 02903
401-222-2466 • Rep-mattiello@rilin.state.ri.us

Lynne Urbani
Director, Office of House Policy
Room B43, State House
Providence, RI 02903
401-258-1760 • lurbani@rilin.state.ri.us


Also, from Grow Smart RI:


Historic Tax Credit: Quick Facts and Talking Points

growsmart

  • Last year, the State Historic Tax Credit (HTC) program was reinstated with limited funding — and 26 new projects have been approved by Taxation to move forward. However, there are 27 additional projects on a waiting list. Without continued funding for Historic Tax Credits, most of these projects will not happen.
  • This could mean the loss of nearly $160 million in construction activity, an investment of jobs and revenue which our economy desperately needs.
  • Rhode Island would also be ceding the competitive advantage of our world renowned collection of distinctive historic buildings and neighborhoods to nearby states such as Connecticut, Massachusetts, Maine, and New York, each of which has ongoing and robust state historic tax credit programs.
  • Suspending the HTC program for a second time (the first time was in 2008) would moreover send a bad signal to investors and entrepreneurs about Rhode Island’s business climate and economic development credibility.
  • According to the State Budget Office, the $52 million in additional HTC funding proposed by the Chafee Administration would come from bonds already authorized by the General Assembly (back in 2008), bonds that would not need to be issued until FY’18 and that would not result in any interest payments until FY’19.
  • “If it ain’t broke, don’t fix it”! Rhode Island’s Historic Tax Credit program has an excellent track record. From 2002 to 2008, it generated $1.3 billion in new private investment in Rhode Island’s real-estate economy. This resulted in an estimated 22,000 construction jobs, 6,000 permanent jobs, and total wages of more than $800 million.

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