Louisiana's Commercial Rehabilitation Tax Credit, better known as the State Historic Tax Credit, has unleashed nearly $4 billion in private investments in less than two decades. Much of that has taken place in Greater New Orleans, creating regional jobs in design and construction while strengthening our local tax base.
Many of the beautifully restored buildings that have received Louisiana Landmarks Society Preservation Awards would still be in disrepair without the State Historic Tax Credit. This 20% credit not only offsets the cost of doing restoration the right way; it helps preservation projects get financing from banks and investors. Losing the credit would mean losing jobs and investment to other states.
A 2017 study by PlaceEconomics found that each dollar in State Historic Tax Credits generates $8.76 in economic activity. This in turn produces sales and income taxes that more than offset the credits given. For every $1 in State Historic Tax Credits, Louisiana receives $0.42 in tax revenue before the credit is issued (after the building restoration is completed). That direct return on investment climbs $2.77 for each $1 according to a 2015 study by Novogradic.
Extending the State Historic Tax Credit provides much needed certainty during turbulent economic times. It will pay off in jobs for Louisianans while bringing life and beauty back to historic towns and neighborhoods.
Call or email your state senator today to let them know you support HB 4 to extend the State Historic Tax Credit.
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