Rep. Clere: House passes Historic Preservation Tax CreditSTATEHOUSE – House Bill (HB) 1111, authored by Rep. Ed Clere (R-New Albany), would substantially expand and improve Indiana’s Historic Preservation Tax Credit. The bill unanimously passed out of the House today and will now move to the Senate.
“This credit is an important tool for economic development in communities of all sizes throughout Indiana,” said Rep. Clere. “The title of the bill is Historic Preservation Tax Credit, but it’s a jobs bill.”
HB 1111 provides that the credit applies to the preservation or rehabilitation of historic commercial properties that have been vacant for at least one year. The bill also increases the maximum annual amount of tax credits available statewide from $450,000 to $2,000,000 beginning June 30, 2013.
Under the current system, the credit available for future years can be awarded in advance, creating a backlog. As a result, all available credits have been awarded until the year 2023.
“As it currently exists, the credit is dysfunctional,” said Rep. Clere. “This legislation will restore and improve its usefulness as an economic development tool.”
The bill further refines the credit by reserving 25 percent of the available credit for smaller, Main Street-type projects, defined as projects with less than $500,000 in qualified expenses.
“Vacant and underused buildings present some of the biggest challenges and biggest opportunities in historic downtowns throughout the state,” said Rep, Clere. “The bill gives communities a tool for turning around those buildings.”