Governor Signs Rehabilitation Tax Credit Enhancements

Joined by state, municipal and local advocates for community revitalization and historic preservation, Governor David Paterson signed legislation that greatly improves the New York State Rehabilitation Tax Credit program. The measure (A.9023-Hoyt/S.6056-Valesky) provides incentives and program features for developers and municipalities seeking to rehabilitate historic buildings, and is hoped to advance redevelopment and economic stimulus goals throughout New York State.

“We have every reason to believe that the New York State Rehabilitation Tax Credit will prove one of the most effective economic and community development programs in the state,” said Jay DiLorenzo, President of the Preservation League of New York State, the not-for-profit organization that led the charge for enhanced tax credits.

Commissioner Deborah VanAmerongen of the State Division of Housing and Community Renewal said, “The Rehabilitation Tax Credits will foster new private and federal investment where it is most needed: our economically distressed downtowns and commercial districts, main streets, and older residential neighborhoods. Further, these incentives will encourage the use or reuse of existing affordable housing resources. I’m delighted that we now have a more powerful tool for revitalizing communities across New York State. “

New York’s first-ever rehabilitation tax credit was adopted as Chapter 547 of the Laws of 2006, but limitations of both the commercial and residential programs failed to provide sufficient incentives to deliver economic and community revitalization to municipalities in need. An economic impact study recently conducted by HR&A Advisors of New York, an industry leader in economic development, real estate and public policy consulting, predicts that the enhanced rehabilitation tax credit will spur over $500 million dollars of economic activity in New York State and create some 2,000 jobs over its initial five-year lifespan.

The act will take effect on January 1, 2010. For more information on New York’s Historic Preservation Tax Credit Programs, call the New York State Historic Preservation Office at (518) 237-8643 or visit http://nysparks.state.ny.us/shpo/investment/index.htm .