On Tuesday, Senate Bill 238 cleared a major hurdle- the proposal to increase the State Historic Tax Credit from 10 percent to 25 percent was taken up by the House Finance Committee.
However, the amendments posited by House Finance are not ideal. The House Finance Committee Substitute would cap the funding for the State Historic Tax Credit program at $5 million dollars per year, increase the credit from 10 percent to 25 percent incrementally over the next three years, and limit the carryback and carryforward terms of the credit.
The $5 million dollar cap is unlikely to spark the redevelopment that is needed to revitalize West Virginia’s downtowns. Currently, in West Virginia if a developer completes a historic rehab project according to the state’s standards, their project then qualifies for the State Historic Rehabilitation Tax Credit. However, the $5 million dollar annual cap changes the very nature of the program…
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