The League’s Vice President for Policy and Preservation Katie Eggers Comeau prepared written testimony for the Joint Legislative Budget Hearing of the Environmental Conservation Committees that took place on Tuesday, February 1, 2022.

Continue reading for the full testimony, or click here for a downloadable PDF.

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Chairwoman Krueger, Chairwoman Weinstein, and distinguished members of the Senate and Assembly, thank you for the opportunity to speak with you today on the topic of historic preservation and the New York State FY 2023 Budget.

As New York State’s only statewide historic preservation nonprofit organization, the Preservation League of New York State invests in people and projects that champion the essential role of preservation in community revitalization, sustainable economic growth, and the protection of our historic buildings and landscapes. We lead advocacy, economic development, and education programs across the state and partner with local preservation organizations throughout New York.

My testimony today includes comments on the importance of historic preservation in climate change mitigation efforts, support of the legislatively proposed extension of the New York State Historic Tax Credit, and support for the Governor’s proposed budgets for the New York State Council on the Arts, New York State Office of Parks, Recreation and Historic Preservation, and the Environmental Protection Fund.

Climate Change and the Green Economy

The Preservation League welcomes the Governor’s emphasis on combating climate change, and we support her prioritization of green energy, resiliency, and mitigation efforts. Historic preservation has a critical role to play in developing a greener, more resilient future for our state. The reuse of existing buildings, as an alternative to demolition and new construction, has quantifiable environmental benefits in keeping valuable building materials out of landfills, recapturing embodied energy, reducing the need for greenfield development, and reusing rather than duplicating existing infrastructure. The reuse of historic buildings, including appropriate measures to improve their energy performance, is thus a critically important, and effective, mitigation measure. After all, building reuse as an alternative to demolition is recycling at the largest possible scale. In addition, the preservation trades are 2 excellent examples of green jobs, as the tradespeople and craftspeople with the skills to appropriately repair, restore, weatherize, and improve existing buildings are helping to ensure that these assets remain in productive use rather than going to waste. The League stands ready to work with the Governor, the Legislature, and agency staff to ensure that programs aimed at combating climate change do so in a way that protects and capitalizes on our historic resources and the contributions they make to this critical effort.

Reauthorizing the NYS Historic Tax Credits

Since 2007, the New York State Historic Tax Credit has been a valuable tool for the revitalization of New York’s main streets and neighborhoods. Historic tax credits have a proven track record of revitalizing historic buildings and neighborhoods throughout New York State, particularly in upstate communities where their use leverages significant federal funding in economically challenged neighborhoods. The historic tax credits are particularly valuable in retaining and creating affordable housing options.

The New York State Rehabilitation Tax Credit Programs are currently authorized until December 31, 2024. As that date approaches, those who wish to utilize the credits may wonder if they will be available when they are ready to proceed with their projects. To provide greater certainty to those who want to utilize the credits, we ask the Legislature to support an early reauthorization of the New York State Rehabilitation Tax Credit Programs through December 31, 2031. Extending these credits will ensure that reinvestment in our urban cores, downtown, neighborhoods, and Main Streets will continue.

Preservation of Debar Pond Lodge

The Preservation League is partnering with colleagues at Adirondack Architectural Heritage and the Debar Pond Institute in support of a land exchange amendment that will safeguard the future of Debar Pond Lodge, a historic Adirondack lodge built around 1940 and set on the shore of Debar Pond in the town of Duane, Franklin County. Designed by notable Adirondack architect William Distin, Debar Pond Lodge is one of the largest log buildings in the Adirondacks, and is listed in the National Register of Historic Places in recognition of its architectural significance. The nonprofit Debar Pond Institute proposes to donate over 400 acres of wild forest land to the State, to be added to the Adirondack Forest Preserve, in exchange for the State transferring a six-acre parcel, encompassing the lodge and outbuildings, to the Institute. The Debar Pond Institute will use the property for a variety of public environmental and cultural programming. The public will retain access to the shoreline of Debar Pond, which will retain its wild character. We consider this a win-win that retains a magnificent piece of 3 Adirondack architecture, enhances the Forest Preserve, and offers new recreational and cultural opportunities.

Capital Investment at OPRHP and DEC

The Governor’s proposed investment in capital projects at both OPRHP and DEC is greatly appreciated. The importance of parks and outdoor recreational opportunities to the health and well-being of New York State residents has never been more obvious than over the last two years. We support the increased funding for infrastructure improvements and particularly look forward to seeing the results of additional investment in New York State Historic Sites, as well as historic buildings and structures located within our NYS Parks.

Environmental Protection Fund

The Preservation League strongly supports the Governor’s proposed increase in funding for the Environmental Protection Fund to a record level of $400 million. We particularly note the significance of the historic preservation grants, which in recent years have funded projects including municipal and nonprofit restoration of courthouses, town halls, libraries, historic houses of worship that frequently serve multiple functions, and nonprofit arts and cultural centers. These grants then leverage private fundraising to preserve community anchors and centers of cultural tourism, and often have a catalytic impact on their communities.

NYSCA Funding

The Preservation League enjoys a longstanding partnership with the New York State Council on the Arts, and knows the importance of their work to promote and sustain arts and cultural programming and facilities, particularly given the ongoing challenges arts institutions face due to COVID-19. We support the Governor’s proposal to continue funding NYSCA’s core grantmaking programming at existing levels and to provide additional recovery funds for arts organizations and for capital projects.

Thank you for your time and attention today and for inviting the Preservation League to testify. We are happy to provide additional information about the above testimony or any other historic preservation issue at the Committee’s request

This news release is cross-posted from nps.gov.

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Federal historic preservation tax incentives generated $7 billion in GDP and 122,000 jobs in 2020

Program has generated $195.2 billion in GDP since 1978

News Release Date: December 22, 2021
Contact: NewsMedia@nps.gov

WASHINGTON - According to the Rutgers University’s Center for Urban Policy Research, the Federal Historic Preservation Tax Incentives Program contributed more than $13.8 billion in output in terms of goods and services to the U.S. economy, generated approximately 122,000 jobs, and added an overall $7 billion in gross domestic product (GDP) in fiscal year 2020. The program is administered by the National Park Service (NPS) and the Internal Revenue Service (IRS), in partnership with State Historic Preservation Offices. 

“Historic preservation efforts do more than maintain and showcase our nation’s history – they also support community revitalization, job creation, affordable housing, and small businesses, particularly in historically marginalized communities whose histories are integral to America’s story,” said Secretary Deb Haaland. “I am proud of the Department’s efforts to preserve our special places and ensure that future generations can learn about the rich history of every community.”

"Investments in the Federal Historic Preservation Tax Incentives Program have extensive benefits to the national economy, generating more than $195.2 billion in GDP since 1978. This incredible federal/state partnership has enabled more than 46,000 preservation and rehabilitation projects while revitalizing communities across the country,” said NPS Director Chuck Sams.

The Federal Historic Preservation Tax Incentives Program, commonly known as the Historic Tax Credit, provides a 20% federal tax credit to property owners who undertake a substantial rehabilitation of a historic building in a commercial or other income-producing use while maintaining its historic character.

The NPS certifies that a building is historic, and therefore eligible for the program, and that the rehabilitation preserves the building’s historic character. The IRS is responsible for administering the other aspects of the tax credit under the Internal Revenue Code. The tax incentives program has helped to revive abandoned or underutilized schools, warehouses, factories, churches, retail stores, apartments, hotels, houses, agricultural buildings, offices, and other buildings across the country, and, in turn, has helped support the redevelopment of entire downtowns and neighborhoods. Seventeen percent of the projects certified in Fiscal Year 2020 were located in communities of less than 25,000 people.

According to this year’s report, about half of the certified rehabilitation projects were located in low- and moderate-income areas and three-quarters of all projects were in economically distressed areas. Program-related investments created approximately 122,000 jobs, including 42,000 jobs in construction and 27,000 jobs in manufacturing, and generated $2.3 billion in construction and $2.0 billion in manufacturing respectively. As a result of both direct and multiplier effects, and due to the interconnectedness of the national economy, sectors not immediately associated with historic rehabilitation, such as agriculture, mining, transportation, and public utilities, benefited as well.

State Historic Preservation Offices are the first point of contact for information and guidance for property owners interested in the program, and the NPS works closely with them in the administration of the program. A breakdown by state of the economic impacts and other program information is included in the reports.

Fiscal Year 2020 Highlights and Reports

• Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2020

• Federal Tax Incentives for Rehabilitating Historic Buildings Annual Report for Fiscal Year 2020

Rehabilitation in Action

Forty-Four & Sixty-Six Service Station, Boise, Idaho | Photo credit: Dan Everhart

Forty-Four & Sixty-Six Service Station (Boise, Idaho)
Instead of demolition and sale of the land to the highest bidder, owners of the Forty-Four & Sixty-Six Service Station decided to preserve and rehabilitate the unique mid-century building for a future tenant who would appreciate the historic character of the building and sensitively adapt it to a modern use. The rehabilitation cost approximately $166,364 and received the 2020 Orchid Award for Excellence in Historic Preservation from Preservation Idaho.

Fiscal Year 2020 Highlights

Rehabilitated Housing Units

• Rehabilitated new or existing housing units: 16,624

• Low- and moderate-income housing units: 5,889

Economic Benefit

• Total estimated rehabilitation investment (Qualified Rehabilitation Expenditures): $6.5 billion

• Historic rehabilitation projects certified: 989

• Estimated total jobs created: 122,000

• Output (Goods and Services): $13.8 billion

• Gross domestic product: $7 billion

• Income created: $5.2 billion

www.nps.gov

About the National Park Service. More than 20,000 National Park Service employees care for America's 423 national parks and work with communities across the nation to help preserve local history and create close-to-home recreational opportunities. Learn more at www.nps.gov, and on Facebook, Instagram, Twitter, and YouTube.

League President Jay DiLorenzo joined Senator Hinchey and Assemblymember Barrett at a press conference in July when their bills to restore the Historic Barn Rehabilitation Tax Credit passed the NYS Senate and Assembly.

This press release is reposted from NYS Senator Michelle Hinchey.

Governor Signs Bill by Senator Hinchey and Assemblymember Barrett to Resurrect the Historic Barn Rehabilitation Tax Credit

Hinchey/Barrett Law Establishes Tax Credit to Revive New York’s Dilapidated Agricultural Architecture, Incentivizes Historic Preservation with an Eye on Rural Development

ALBANY, NY – State Senator Michelle Hinchey (SD-46) and Assemblymember Didi Barrett (AD-106) today announced that their bill (S.6042/A.6947) to create a tax program to help landowners restore historic barns across rural and upstate New York has been signed into law by Governor Hochul. Thanks to the legislation, property owners will soon be eligible to apply with the state Historic Preservation Office for a 25% tax credit to restore barns constructed before 1945 back to productive use or into small businesses such as craft breweries, event spaces, and the like, to foster economic growth. 

The Historic Barn Rehabilitation Tax Credit, once a federal program, was eliminated in 2018 as a result of changes in the federal tax code under the Federal Tax Cuts and Job Act of 2017. The Hinchey/Barrett bill revives this tax incentive by placing it in state Tax Law and expanding eligibility so that more historic barns throughout the state may qualify.

“Historic preservation is a pivotal strategy for rural revitalization and by instituting the Historic Barn Rehabilitation Tax Credit we are making it more affordable for New Yorkers to save these beloved buildings from disrepair and explore new uses in agritourism, arts and culture,” said Senator Michelle Hinchey. “This incentive will help preserve thousands of historic barns across rural and upstate communities, allowing us to trace back New York’s rich agricultural heritage, boost community pride, and capitalize on valuable opportunities to revive local economies. I thank Assemblymember Barrett for her partnership on this legislation and Governor Hochul for signing our bill into law so we can inspire a new era of investment in rural New York.”

“Our iconic historic barns embody the Hudson Valley’s rural and agricultural roots, and the preservation, restoration and repurposing of these barns is critical to maintaining the region's bucolic character, as well as the regional economy,” said Assemblymember Didi Barrett. “By resurrecting the New York State Historic Barn Rehabilitation Tax Credit, we are incentivizing a new generation of farmers, architecture enthusiasts, and business owners to reconnect with the state’s past while building for their own future. I thank Senator Hinchey for sponsoring this important legislation in the Senate, and thank Governor Hochul for signing our bill into law!”

“The Historic Barn Rehabilitation Tax Credit will be a boon to rural areas throughout New York State,” said Jay DiLorenzo, President of the Preservation League of NYS. “Our team at the Preservation League hears directly from historic barn owners more than any other type of property owner, and the renewal of the barn tax credit will provide a much-needed resource. The historic barns that dot our landscape provide a tangible link to our state’s agricultural past, but they also represent opportunities to revitalize communities — either through adaptive reuse or a reinvestment in agricultural uses. We are grateful to Senator Hinchey and Assemblymember Barrett for their leadership on this issue and thank Governor Kathy Hochul for signing the bill into law.”

Dr. Michael Tomlan, President of the New York State Barn Coalition, said, “The need to rehabilitate the barns across the Empire State has never been greater. The support of the Senate and Assembly members and the Governor is a tremendous step forward, energizing the economy and assisting property owners and thousands of rural communities.”

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As the Preservation League of New York State eagerly awaits the upcoming 2022 budget and legislative session, we've joined efforts with our preservation colleagues around the state to outline some initial priorities that we have shared with Commissioner Kulleseid at the Office of Parks, Recreation & Historic Preservation. We stand ready to advocate for historic preservation and tout its many benefits to the great communities we have across the state.

Click here to read the letter.

We ask our New York preservation allies to continue voicing your support of the federal historic tax credit program, which supports rehabilitation of historic buildings across the state.

The recent U.S. House infrastructure legislation included provisions to improve the federal historic tax credit — which would improve its functionality here in New York! Read more.

The best way you can help right now in NYS is to call Senator's Schumer's office at 202.224.3121.

• Introduce your self as a constituent.

• Explain the importance of the federal historic tax credit in historic preservation and that it has not been meaningfully improved since the 1980s.

• Ask for the Senator’s support in protecting the Historic Tax Credit provisions in the House Reconciliation Infrastructure Bill. The current draft would benefit all HTC-eligible projects from Main Street to large-scale rehabilitation efforts across the country.

Phone calls Senator's office is the most effective advocacy at this time when the Congress is in ongoing negotiations. However, please feel free to also follow-up with any personal contacts you have in his office or send an electronic message.

As you may have heard, the recent U.S. House infrastructure legislation included provisions to improve the federal historic tax credit - improving its functionality here in New York!

Congressional leaders are currently negotiating with the Biden Administration over a $3.5 trillion package, which includes a number of community development incentives, to include historic tax credit improvements. The result of these negotiations is likely a drastic reduction in these earmarked funds - which insiders predict could be as low at $1.5 trillion.

Preservation advocates from across New York State have joined together to pen this letter of support for the federal historic tax credit provisions to Senate Majority Leader Schumer and Senator Gillibrand. However, there is still advocacy to be done.

WE NEED YOUR HELP TODAY TO STRESS THAT THESE PROVISIONS MUST REMAIN IN THE FINAL BILL

Specifically, here in New York - Senate Majority Leader Schumer and Senator Gillibrand need to hear from you on why you support these provisions.

Contact Senator Schumer's office via email or call the DC office at 202.224.6542.
Contact Senator Gillibrand's office via email or call the DC office at 202.224.4451.

What do I say to the members of their staff?

• Introduce yourself and let them know you'd like to voice your support for historic tax credit provisions (they may direct you to a more appropriate staff member).

• Thank the Senators for their support of the federal historic tax credit program over the years.

• Express how the provisions in the letter benefit you/your business, your community, and the State of New York.

  • Do you have/know of a preservation project that these provisions will emphasize?

  • Are you concerned with historic sites disappearing from the New York landscape/lack of incentives to preserve them?

  • Do you live in an economically challenged and/or rural part of New York that could benefit from these provisions?

Memorandum of Support: A.3241 (McDonald), S.6721 (Ryan) A.5337 (McDonald), S.5377 (Cooney)

The Preservation League of New York State is the statewide historic preservation nonprofit — leading advocacy, economic development and education programs across the state. We write in support of amending the real property actions and proceedings law with regard to the following Bills:

• A.3241 (McDonald)/S.6721 (Ryan) to expand the applicability of the receivership law to the entire state of New York for the purpose of remedying conditions dangerous to life, health or safety; and

• A.5337 (McDonald), S.5377 (Cooney) relating to special proceedings to convey title to abandoned real property to cities, towns or villages.

The aforementioned legislation aims to address real property issues, which will result in the ability to maintain safe and livable housing, stabilize neighborhoods, and contribute to the overall quality of life for residents across New York State. A.3241/S.6721 will deter building vacancy and demolition of unsafe properties, keeping more of our older residential buildings well-maintained and out of landfills. This tool will help address building code violations and situations when buildings have fallen into serious disrepair. It will be particularly helpful in cases where tenants voice complaints to landlords, yet issues remain unaddressed. Currently only available for the New York City region, this bill will add receivership as a statewide tool.

A.5337/S.5377 enables a municipality to take title of abandoned real property in cases where a zoning, housing, building or property maintenance code violation remains unremedied for a period of at least one year. This will limit unsafe structures from remaining a public threat and increase the ability for a property to be successfully returned to a habitable condition rather than incur demolition - which is both costly and not environmentally sustainable.

We applaud the NYS Senate’s passage of S.5377 and urge the NYS Assembly to pass its companion bill, A.5337. We also ask the NYS Assembly and Senate to adopt A.3241/S.6721. These bills will help efforts to remedy conditions dangerous to life/health/safety, limit the negative environmental impacts of demolition, and retain our built environment. Thank you to Assemblymember McDonald and Senators Ryan and Cooney for their leadership.

Click here for a PDF of this support letter.

The League is thrilled to share that Senator May and Assemblymember Buttenschon’s bills to ensure regular quarterly meetings of the Canal Recreationway Commission have passed the Senate and Assembly! Thank you to the Senator and Assemblymember, as well as the large bipartisan group of legislators who supported this bill. The Preservation League believes this new legislation will establish consistency and give the Commission the tools to focus on important future planning efforts to support our Canal System and chart a new path forward, supporting our National Historic Landmark Canal System’s ability to leverage the economic benefits of tourism, recreation, and commercial use now and into the future. We were proud to support it!

Memorandum of Support S.6042 (Hinchey)/A.6947 (Barrett)
Click here for a PDF of this letter.

The Preservation League of New York State is the statewide historic preservation nonprofit — leading advocacy, economic development and education programs across the state. We write in support of Bill S.6042 (Hinchey) and A.6947 (Barrett) to provide a tax credit for the rehabilitation of historic barns. In 2018 the existing New York State Historic Barn Rehabilitation Credit was negatively altered as a result of changes in federal tax code under the Federal Tax Cuts and Job Act of 2017. Today, we urge the Senate and Assembly to set right this obstacle to New York’s ability to retain our agricultural heritage and revive the functional incentive to return these buildings to productive use.

The 25% tax credit promotes barn rehabilitation, vital in retaining remaining historic barns in every corner of the state. Not only does it pay homage to New York’s agricultural history and architecture, it also provides opportunity for thoughtful reuse, community enjoyment, eliminating landscape decay, as well as circumvents the negative environmental impacts of demolition.

In particular, this incentive helps revitalize regions that have been hit hard over the last several decades with disinvestment and the continual shift farther away from agriculture. It will inspire a new era of entrepreneurs ranging from farmers to tourism and contribute to economic vitality in New York State. This will all be accomplished while keeping the historic appearance and architecture intact on the impressive structures within our landscape.

Since 2015, this program has contributed to the successful rehabilitation of nearly 50 barns across the state. Thanks to the 2017 federal tax code changes, a small number of barns currently qualify for this incentive and only a handful of those have received the credit in the past couple years.

The Preservation League receives more requests for financial assistance with barn restoration than any other building type. This much-needed legislation will fill a large gap. An annual program report delivered to the legislature would help demonstrate the program’s effectiveness for future advocacy, as well as identify areas for outreach strengthening. We strongly support this legislation and urge the NYS Legislature to pass it within this legislative session.

Memorandum of Support A.7044 (Buttenschon)/S.5958 (May)
Click here for a PDF of this letter.

The Preservation League of New York State is New York’s statewide historic preservation nonprofit. We write in support of Bills A.7044/S.5958 relating to the operations and preservation of the National Historic Landmark New York State Canal System.

As New York State’s only statewide historic preservation nonprofit organization, the Preservation League invests in people and projects that champion the essential role of preservation in community revitalization, sustainable economic growth and the protection of our historic buildings and landscapes. We lead advocacy, economic development and education programs across the state and partner with local preservation organizations throughout New York. In 2019, we listed the NYS Canal System as a statewide Seven to Save to highlight the need for New York State to prioritize stewardship of its National Historic Landmark canals as an intact, fully-navigable international waterway for present and future generations.

The New York State Canal System was designated a National Historic Landmark in 2016 due to its span, scope, authenticity and historic integrity. The Preservation League believes that the best future for our NYS Canal System lies in capitalizing on its past, marketing itself as a historic transportation corridor, improving amenities for canal users, and strengthening local, regional, and international partnerships to promote tourism, as well as recreational and commercial use.

We commend the New York Power Authority and New York State Canal Corporation for their ongoing restoration, maintenance, and stewardship of our National Historic Landmark canal system. This bill supports their work while providing important consistency for those who use the canal, whether for recreation, tourism, or commercial purposes.

We support the bill’s goal to establish a consistent operating schedule that provides users the opportunity to navigate through the autumn tourism season, as well as reinforcing the ability of commercial boat operators to use canal facilities as prescribed under New York State’s Codes, Rules and Regulations, and continued use of the canal system’s National Historic Landmark locks, moveable dams, and other engineering structures.

Our impressive New York State Canal System has national and global significance thanks to its authenticity as a continuously operating end-to-end canal system. The vibrancy of our canals brings billions of dollars each year to our state and communities along the canal corridor.

As we celebrate the canal’s 200th birthday, this legislation will support and enhance the canal system’s ability to leverage the economic benefits of tourism, recreation, and commercial use now and into the future.