28 August 2017

Tools To Preserve Alaska's Historic Buildings Swinging In Balance Of Tax Reform


When Hugh and Iris Darling found it was time to invest in maintaining Brown & Hawkins, one of the original townsite buildings in Seward, they didn’t have a difficult time supplementing their funding.

Hugh’s mother, Virginia Darling, had filled out the paperwork to have the 1900 era store placed on the National Historic Register, and that opened up a world of possibilities.

The Darlings took advantage of a non-competative program called the Historic Preservation Tax Credit – a sort of grant from the IRS – that is designed to keep historic buildings in America’s inventory.  With the minimum amount of repairs being just $5,000 – easily the cost of a new roof or boiler, being able to take credit for the work off their taxes was welcome relief.

Iris Darling: “We have gotten them a couple times. You know, they are not difficult.  They are available.  You have to be on the national register,  you put in a plan, and it has to be approved.”

It is an industry maxim that the greenest building is the one already built, and according to the National Trust for Historic Preservation, without the tax credit many buildings that touch back to a community’s roots would end up in the landfill.

Government Relations and Policy Director Shaw Sprague: “..over the past 35 years has helped revitalize hundreds of communities and more than 42,000 historic properties across the country, and it really is the cornerstone of how the federal government supports historic preservation today.”

Senator Lisa Murkowski will soon be looking at a bill that expands the Tax Credit in a way that is highly favorable to Alaska’s smaller rural communities.  Historic Tax Credit Improvement Act (S.2655/H.R.3856) would up the tax credit to 30% on project under $1.5 million, and allow developers to offer the credit to investors who may need a break on their taxes.

Senator Lisa Murkowski: ” We are going to be taking up tax reform, big issue, that will occupy much of the time in September.”

House leadership released their Tax Reform Blueprint in late June which targets credit and deduction programs for elimination.  While it doesn’t specifically reference the Historic Tax Credit, it’s elimination is implied and the National Trust for Historic Preservation views it as a second strike after the previous Chairman of the Ways and Means Committee proposed to eliminate the program.

Story as aired on KSRM News:
http://www.radiokenai.us/wp-content/uploads/2017/08/Dorene-on-Tools-to-preserve-Alaskas-historic-buildings-swinging-in-the-balance-of-tax-reform.mp3

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