Historic Hawai‘i Foundation has released a study titled “The Economic Benefits of State Historic Preservation Investment Tax Credits”. The study was requested by the Senate as the State Legislature considers bills to establish a 25% credit against state taxes for qualifying projects (SB 708 and HB 1708).
The study found that in the 29 states that have a rehabilitation tax credit, all of them determined that the fiscal return was greater than the state’s forgone taxes, often returning 3 to 5 times more revenue to the state in new taxes and significant new investment. The rehabilitation tax credit also was successful in creating new jobs, increasing loan demand and deposits in local financial institutions, enhancing property values and generating sales. In addition to these direct fiscal impacts, the tax credit also has proven benefits related to environmental sustainability, affordable housing, tourism and visitation, and neighborhood revitalization.
The study was conducted by Wendy Wichman of Preservation Associates for Historic Hawai‘i Foundation.