On July 2, 2012, Pennsylvania became the 30th state in the country to offer a state historic tax credit when Governor Tom Corbett signed the FY 2013 Commonwealth Budget and established the Historic Preservation Incentive Act. This tax credit will be a companion to the very successful federal tax credit program already in place and was established as part of the Commonwealth Budget in the Tax Reform Code.
The State Historic Tax Credit will offer a 25% state tax credit for the rehabilitation of qualified income-producing buildings that are also using the federal tax credit. By leveraging the existing 20% federal tax credit with an additional 25% state credit, the program will help lure investment into Pennsylvania. Recent research suggests that states with state credits tend to have an advantage over states that do not have tax credits in attracting investment in historic rehabilitation.
To get the program up and running, The Pennsylvania Historical and Museum Commission and the Department of Economic and Community Development will develop the program guidelines. The credit goes into effect July 1, 2012 but the first tax credits will not be issued until after July 1, 2013. Just like the federal program, this credit is issued after the project is completed. To start, the program is limited to $3 million annually with an individual project cap of $500,000.
For more information on the state historic tax credit and how to apply, please visit Preservation PA at www.preservationpa.org.
PIDC and the City of Philadelphia offer a variety of resources to support commercial redevelopment projects in all neighborhoods of the City involving historic properties. For more information please contact Chamor Hollinger at 215-496-8157 or at email@example.com.