Eliminating historic tax credits would be a mistake
Published June 9, 2014
Editorial by Winston-Salem Journal, June 8, 2014.
As it works out a new budget, the state legislature is trying to reform what some perceive as an unfair tax structure. But some of its decisions may wind up doing more harm than good – like its rejection of historic preservation tax credits.
Gov. Pat McCrory was wise to include historic preservation tax credit programs in his proposed budget – they encourage economic development while at the same time allowing cities to retain unique structures that speak to their histories. They create jobs. Their worth as an economic tool has been proved time and time again.
But the Senate budget does not include McCrory’s proposal for historic preservation tax credits.
Paul Norby, the director of the City-County Planning Department, told the Journal editorial board that the Wake Forest Innovation Quarter, taking advantage of historic tax credits, “has generated $200 million or more in economic investment.” He cites information from Wexford Science and Technology LLC of Baltimore, which developed the Wake Forest BioTech Place building, to say that the tax credits were responsible for thousands of construction jobs - not to mention more than 3,300 permanent jobs in the quarter by the fall.
“We also wouldn’t have the Nissen Building, the Piedmont Leaf Lofts, the Gallery Lofts in Goler, the old Courthouse, Plant 64, or the Winston Factory Lofts if it hadn’t been for the tax credits -- just to name a few. I’m sure the re-use of the RJR Building and the Chatham Mills will depend on these, too,” Norby told us in an email.
Brian M. Davis, the executive director of Historic Salisbury Foundation, wrote in the Salisbury Post that without the tax credits, “the expense involved in putting new life in an ‘old’ building will be too great for many. As a result, these buildings will continue to sit vacant, deteriorate and may ultimately crumble.”
Talk about a waste.
Let’s be clear: The tax credits don’t represent money that’s being handed out by the government to freeloaders. Eliminating the credits won’t increase state revenue – instead, projects that would help stimulate local economies likely won’t be started in the first place. Instead, the jobs and development will just go elsewhere. Likely, to other states.
We’ve long touted the need for tax reform at the state level – reform that accepts the realities of a new, technologically-savvy society. But the legislature’s approach, in this instance, is like trying to jam a foot into a shoe that doesn’t fit.
June 9, 2014 at 8:25 am
Richard Bunce says:
Those that regularly favor higher taxes in general also regularly favor government handing out tax breaks to favored groups/activities rewarding their friends and punishing their enemies. Lets lower taxes and regulations for all and this will not be an issue.
