Historic Preservation Tax Credit in Jeopardy: Implications for Northeast Ohio

Strategic Insights -

The historic preservation tax credit in Ohio has been a crucial component in revitalizing older buildings throughout the state, particularly in Northeast Ohio. However, after 20 years of operation, the program is under threat due to a proposed change in the state budget by Senate Republicans. The amendment, if approved, would end the Ohio Historic Preservation Tax Credit Program after the 2027 fiscal year, unless a future General Assembly reverses course. This would have severe consequences for communities like Cleveland, Akron, and Youngstown, where the program has been instrumental in breathing new life into historic buildings.

Key Takeaways:

  • The Ohio Historic Preservation Tax Credit Program has provided $430 million in tax credits to 722 projects rehabilitating over 975 historic buildings across 91 Ohio communities since 2007.
  • Northeast Ohio has been a significant beneficiary of the program, with 153 projects in Cleveland and Cuyahoga County using $430 million in tax credits, resulting in 105 completed projects.
  • The tax credit has helped revitalize downtown Cleveland, particularly in the Over-the-Rhine neighborhood, and has also contributed to the growth of MidTown, where projects like the adaptive reuse of Warner & Swasey and Agora Lofts have received support.
  • Heritage Ohio, the state's nonprofit preservation organization, and the Greater Ohio Policy Center have voiced opposition to the proposed changes, citing the catastrophic consequences of ending the tax credit on jobs, architecture firms, and developers.
  • The tax credit has a significant impact on local real estate markets, with developers requiring assistance to meet loan expectations for rehabilitation projects.
  • The historic tax credit has been in operation since 2006, with 34 rounds of applications and 722 projects receiving assistance.

Statistics:

  • 34 rounds of applications under the historic tax credit program since 2006
  • 722 projects have received assistance nationwide
  • 975 historic buildings have been rehabilitated across 91 communities in Ohio
  • $430 million in tax credits used in Northeast Ohio alone
  • 105 completed projects in Cleveland and Cuyahoga County
  • 153 projects approved in Cleveland and Cuyahoga County since 2007
  • Ohio's historic tax credits have supported 1,500 construction jobs and generated $150 million in annual economic activity

Sources:

  • "Ohio Budget: Historic Preservation Tax Credit at Risk" - ThisIsCleveland.com (no specific publication date)
  • "Heritage Ohio Letter to Ohio Senate Finance Committee" (no specific date)
  • "Greater Ohio Policy Center Statement Opposing Senate Budget Changes" (no specific date)
  • "Ohio Historic Preservation Tax Credit Program" - Ohio Department of Development
  • "Cleveland Historic Buildings Get $430 Million in Tax Credits" - ThisIsCleveland.com (no specific publication date)
  • "Cleveland Browns Stadium, Historic Tax Credit on Budget Agenda" - ThisIsCleveland.com (no specific publication date)