by Becky Holton
From its implementation in 1998, North Carolina's Historic Preservation Tax Credit program has done far more than preserve
valuable historic structures.
While retaining irreplaceable assets, bringing
new life to downtowns and inspiring sustainable development patterns,
it has also had a tremendous impact on the state's economy.
The catalytic effect
of historic rehabilitation in the state and the multiplied returns
to the North Carolina economy has meant over $1.4 billion in revenues, 14,100 jobs and
$438 million in additional employee compensation.
From both a financial and social
perspective, the state has recognized an
incredible return on its investment in
tangible revenues and intangible
enhancements of citizens' quality of life.
The substantial value of the tax credit program
is readily apparent. Ultimately, it has not
only created statewide profit in the past,
but also offers a promising future for
preservation activities and economic
development throughout our state.
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Facts and Figures
- Between
1976 and 2007, a total of 1,989 projects were
completed, generating $1.07 billion in project
expenditures.
- Tax credit activities have occurred in every
county in the state.
- Between 1998 and 2007, the tax credit facilitated the completion of 1,324 projects
with total qualified rehabilitation expenditures of over
$830 million dollars. These expenditures have, in turn,
generated an estimated $1.4 billion dollars in statewide
economic output.
- Tax-credit projects directly created about 8,630 jobs and produced a
total of 14,100 jobs through
multiplication effects. The rehabilitation activities directly
contributed $263 million in employee compensation,
with an additional $176 million of income generated
from related activities—offering a total of $438 million in
additional household income.
- The state issued an estimated
$179 million in historic tax credits and received tax
revenues of approximately $55 million in direct taxes
from the rehabilitation activities. That cost to the state of roughly $3.6 million
per year in foregone revenues has
stimulated approximately $160
million in new economic activity annually.
- Each $1 in state historic tax credits issued has
been leveraged to create $12.51 (for income-producing
projects) or $7.93 (non-income-producing
projects).
Becky Holton earned her Masters degree in Regional Planning at the
University of North Carolina at Chapel Hill in 2008. Becky
received the 2007 Robert E. Stipe Fellowship, and she now
works for the Center for Community Self-Help.
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