Annual Report on the Economic Impact of the Federal Historic Tax Credits for Fiscal Year 2021
Click the image to read the full report.
We know that Historic Tax Credits are a crucial tool for preserving and rehabilitating historic buildings — which is why it is so important that we have hard numbers that prove just how immense the impact is. The National Park Service’s Annual Report detailing the economic impact of the Federal Historic Tax Credit is an invaluable resource as preservation advocates continue to promote the importance of maintaining and enhancing Historic Tax Credits.
The economic analysis in the Annual Report utilizes the Preservation Economic Impact Model (PEIM) developed by Rutgers University Center for Urban Policy Research for the National Park Service. The document includes both cumulative HTC-related historic rehabilitation investment (about $199.1 billion in inflation-adjusted 2021 dollars from FY 1978-FY 2021) ) and the single-year FY 2021 HTC-related investment (about $8.0 billion).
From the report’s introduction: “In Fiscal Year (FY) 2021, the NPS certified 1,063 completed historic rehabilitation projects, representing $7.2 billion in estimated rehabilitation costs that qualify for the 20% Federal tax credit. Another 1,098 proposed projects were also approved in FY 2021. Many of these projects involved buildings that were abandoned or underutilized and in need of substantial rehabilitation to return them to, or for their continued, economic viability. The HTC program also is an important tool in helping to revitalize older, economically depressed communities. Based on project data provided by the NPS, PolicyMap determined that 44% of the certified rehabilitation projects in FY 2021 were located in low- and moderate- income census tracts and 78% were located in economically distressed areas.”
“The program remains the Federal government’s largest and most effective program supporting historic preservation and community revitalization.”
For our purposes, we were particularly interested in the direct impact for New York State. For Fiscal Year 2021, the Federal Historic Tax Credit supported $562.2 million in total rehabilitation costs; created 9,301 jobs; generated $400.6 million in income; $535 million in gross domestic product; and $1.05 billion in output.
As defined in the report:
JOBS - Employment; both part- and full-time, by place of work, estimated using the typical job characteristics of each industry.
INCOME - “Earned” or labor income; specifically, wages, salaries, and proprietor income.
WEALTH - Value-added; the sub-national equivalent of gross domestic product (GDP).
OUTPUT - The value of shipments; as reported in the Economic Census.
TAXES - Tax revenues generated by the activity; including taxes to the Federal government and to state and local governments.
Numbers like these prove how important the Historic Tax Credit is in supporting not just preservation, but bolstering larger economic development in communities across the state. The two go hand-in-hand — and our advocacy will continue to promote that.