Warner & Kaine: Republican Tax Plan Would Hurt Virginia Communities by Eliminating Historic Tax Credit

Statement

Today, U.S. Senators Mark Warner and Tim Kaine expressed their concern over the House Republicans' tax plan that would eliminate the Federal Historic Tax Credit, which communities across Virginia use to draw in new business, create jobs, and revitalize cities and towns. The Federal Historic Tax Credit, a critical component of public-private partnerships, helps to attract development projects by providing a tax credit to developers after the restoration of a qualifying historic building. Virginia has been a top recipient of this federal funding, which has been used to redevelop more than one thousand buildings across the Commonwealth since 2002, including affordable housing, office space, restaurants, hotels, retirement homes, child care centers and shopping centers. Notable projects that have used these funds include the Wayne Theatre in Waynesboro, the Paramount Theater in Charlottesville, and the Bolling Wilson (George Wythe) Hotel in Wytheville.

"This tool has helped Virginia communities preserve historically significant buildings while creating quality jobs and stimulating long-term economic growth," said Warner. "We should not be targeting this proven economic engine, which would leave many localities hanging while some companies and high income earners receive a tax break."

"I've heard from mayors and local leaders across Virginia who agree it would be a short-sighted mistake to eliminate a successful program that's strengthened local economies in every corner of the Commonwealth," said Kaine. "We should be helping Virginia's rural communities get ahead, but instead this cut in the Republican tax plan hurts their ability to succeed and redirects funds toward tax cuts for those at the very top."

Between Fiscal Years 2002 and 2016, developers completed more than one thousand projects in Virginia using the Federal Historic Tax Credit. Elected officials have also voiced concern that eliminating this credit may impact the completion of buildings that are part of existing projects, which localities have already invested in.

The Senate version of the Republican tax plan similarly aims to limit the Federal Historic Tax Credit. Warner, a member of the Senate Finance Committee that is debating the Republican plan this week, has cosponsored a measure that would amend the legislation to protect and expand this tax tool.

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