State historic preservation tax credit hangs in the balance

Last fall President Trump recommended eliminating the federal tax credit for historic preservation projects. That recommendation was eventually rejected by Congress, which kept the tax credit in the budget plan it passed.

Now the Iowa House of Representatives is considering a budget which would eliminate the state historic preservation tax credit. The legislation has gone to the floor of the legislature, so it could be taken up any day now.  The state tax credit covers up to 20 percent of the cost of a project.

The state historic tax credit legislation was discussed at Tuesday's Energy Breakfast at T-Bock's. Supporters of the state tax credit say it pays for itself, citing figures which show nearly $195 million in historic tax credits were awarded from 2002 through 2016, with the renovation projects producing $230 million in tax revenues, a 17 percent return on investment.

The National Trust for Historic Preservation says throughout the U.S., historic preservation tax credits have returned $1.20 to $1.25 in tax revenues for every dollar invested.