Washington Preserves Historic Tax Credit

The Federal Historic Preservation Tax Credit is the most important economic incentive in the field of historic preservation. Established by President Reagan, it has enabled the rehabilitation of over 40,000 buildings across the country, created thousands of jobs and returned $1.20 to the federal government for every $1 of credit awarded. Alarmingly, the credit was eliminated in the House of Representative’s fall version of the comprehensive tax reform bill. Historic Charleston Foundation, in cooperation with the National Trust for Historic Preservation and numerous other partners, engaged in an intense lobbying and advocacy effort in support of the credit.HCF’s efforts primarily targeted Charleston native, Senator Tim Scott, who sits on the crucial Senate Finance Committee and who served on the Reconciliation Committee that produced the final version of the tax bill. HCF has consistently met with Senator Scott and his staff over the years to advocate for historic preservation, but it was interactions during this important time that led to Senator Scott awakening to the value of historic preservation and becoming a champion of the federal tax credit. Senator Scott spoke on the floor of the Senate in support of historic preservation and co-sponsored an amendment that restored the credit, then continued to advocate for it and historic preservation while serving on the Reconciliation Committee.Much to the relief of preservationists across the country, the tax credit was included in the final version of the tax reform bill. The Foundation is grateful to Senator Scott for taking meetings with the Foundation staff, listening, engaging and ultimately taking the historic preservation message to the floor!The Cigar Factory on East Bay Street, pictured above, is a prominent example of a Charleston-area structure that was rehabilitated using historic tax credits.