2nd Annual Report on the Economic Impact of the Federal Historic Tax Credit | Tax Credit Archives | Informative Articles | Missouri Tax Credits

The National Trust Community Investment Corporation and Rutgers University have released their 2nd Annual Report on the Economic Impact of the Federal Historic Tax Credit. This report is widely cited and is a must read for those involved with Historic Tax credits. You can read the whole report at

http://ntcicfunds.com/wp-content/uploads/2011/06/2nd_Annual_Rutgers_Report.pdf

There has been a lot of debate in Missouri about the effectiveness of the historic tax credit program. It is interesting to note the following comment from the report:

The economic impact from the federal tax credit-aided historic rehabilitation stimulates the state-level as well as the national economy. For example, in FY 2009 and 2010, Missouri had about $974 million in federal HTC-supported rehabilitation. The national impacts of that investment included about 16,700 jobs generating an additional $1.9 billion in output, $695 million in income, $920 million in GDP, and $219 million in taxes. At the state of Missouri level, the FY 2009 and 2010 $974 million in historic rehabilitation spending translates to 12,400 jobs generating $1.2 billion in output, $523 million in labor income, $641 million in gross state product (GSP), and $199 million in taxes. The in-state wealth (GSP minus business-paid federal taxes) resulting from rehabilitation expenditures amounts to $569 million, indicating a high 89 percent retention rate. Similar high state-level retention rates of the economic benefits from the HTC characterize other locations as well. (See Summary Exhibits 4 and 5 for greater detail.) Exhibits 4 and 5 are on pages 14 and 15 of the report.