State Historic Tax Credits
AIA Wisconsin supports the state historic tax credit program. Increased during the 2013 legislative session, the 20% state historic tax credit is an effective incentive for community redevelopment, sustainable economic growth and job creation. The Governor’s executive budget bill recommends limiting annual tax credit awards to $10 million and basing the awards on job-creating potential. A Wisconsin Historical Society analysis of the proposed cap shows that the state historic tax credit is not a drain on state revenue and many of the rehabilitation projects would not happen without it. In fact, 40% of the credit is paid back in other taxes before the project is finished, with the remainder recouped in seven years, and, 60% of all project buildings in 2014 had been vacant more than 20 years. The proposed restrictions would create uncertainty in the redevelopment process and deter owners from taking on the risk of rehabilitation.