Englebright Measure to Increase Historic Preservation Tax Credit Passes Legislature
Assemblyman Steve Englebright (D-Setauket) announced that his historic preservation tax credit bill (A.9110) has passed both houses of the State Legislature. This measure (A.9110) will increase the maximum award available under the historic preservation tax code from $5 million to $12 million. The bill is expected to become law.
“The Historic Preservation Tax Credit is a great tool to revitalize historic properties throughout New York,” Assemblyman Englebright said. “Increasing the tax credit for builders and developers who want to do business may give them the added incentive they need to move forward on these projects and create jobs. This legislation opens up a larger market for developers and investors and is another sign that New York is open for business. Additionally, the enhanced tax credit will preserve historic buildings, reduce blight and get more of our state’s residents working.”
The historic preservation tax credit is currently capped at $5 million per project and has been used successfully in the past by developers throughout the state to renovate and restore buildings that suffer from long-time neglect and need serious repair. Increasing the tax credit to $12 million creates a greater incentive for developers and encourages revitalization of larger, more expensive structures, Englebright noted.
"Hats off to Assemblyman Steve Englebright and both houses of the NYS Legislature," said Robert MacKay, Director of the Society for the Preservation of Long Island Antiquities. “This legislation will jumpstart revitalization efforts and help turn neglected historic structures into new, usable and functioning buildings."
Current law allows for a 20% tax credit up to a maximum of $5 million dollars, this legislation continues the 20% credit, but raises the maximum threshold to $12 million therefore increasing the number of properties that developers will likely rehabilitate under this program. This bill shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2012.