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Pennsylvania Historic Preservation Tax Credit Quadrupled to Boost Downtown Pittsburgh Redevelopment
A New $47.9B State Budget Increases Support for Downtown Pittsburgh with an Expanded Historic Tax Credit
According to The Business Journals, Downtown Pittsburgh is set to benefit from the newly passed $47.9 billion state budget which includes a significant increase in Pennsylvania’s Historic Preservation Tax Credit. The credit has quadrupled from $5 million to $20 million providing much-needed financial support for development projects. State Senator Wayne Fontana whose district includes downtown has highlighted the importance of this increase. He believes the additional funds will help property owners push conversion projects forward and fill crucial financing gaps. Fontana also noted the inclusion of Pennsylvania Housing Finance Agency Low Income Tax Credit awards for two downtown projects: the historic conversion of 4 Smithfield and the renovation of the May Building on Penn Avenue. Despite these gains, Fontana expressed disappointment that a proposal to extend the Local Economic Revitalization Tax Assistance program from 10 to 20 years was not included in the budget. He argued that this extension could have supported efforts to attract a new convention center hotel downtown.
Brett Walsh of Hullett Properties which is completing the historic conversion of the Triangle building on Smithfield Street has welcomed the increased historic tax credit. Walsh sees potential for further redevelopment projects downtown thanks to the boosted financial support. Hanna Stark who is the director of policy and communications for the Preservation Alliance of Greater Philadelphia has emphasized the widespread interest in the state’s historic tax credit program. According to Stark, Pennsylvania routinely ranks among the top five states in which to use federal credit and the state has numerous properties listed on the National Register of Historic Places. She did point out that two improvements that Pennsylvania’s program may make are increasing the maximum on projects from $500,000 to $2.5 million and implementing an allocation mechanism that is more dependable akin to Ohio’s scoring system. Because Pennsylvania currently uses a random number generator developers cannot trust the credit.
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Ultimate $20 Million Jackpot: Downtown Pittsburgh’s Historic Tax Credit Surge (PHOTO: The Business Journals)
Expanded Historic Tax Credit to Propel Downtown Pittsburgh Recovery Amid Economic Challenges
Furthermore, Stark hopes these changes will encourage more developers to apply for the state credit boosting the potential for historic preservation projects across Pennsylvania. She highlighted the high demand for such credits underscoring the need for improvements in the program’s administration. While the increased historic tax credit is a positive step Fontana and others believe more state support is needed to overcome the ongoing economic challenges caused by the pandemic. The quadrupled historic tax credit is a significant boost but advocates argue that further measures are necessary to fully support downtown Pittsburgh and other communities in their recovery efforts.
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