Schumer Pushes Passage of Historic Tax Credit that's Critical to Revitalization of Upstate Landmarks-Senaor Successfully Extended New Markets Tax Credit at Year's End & is Fighting for Second Piece of his Plan to Redevelop Historic Sites

Press Release

Today, U.S. Senator Charles E. Schumer announced that, as an original cosponsor, he will push for passage of the Creating American Prosperity Through Preservation (CAPP) Act in the coming months, which was reintroduced in the Senate this June. The CAPP Act would increase the Historic Tax Credit from 20 percent to 30 percent of investment costs for smaller projects that cost less than $7.5 million and make more buildings eligible for the tax credit. Schumer argued that for three decades, the Historic Tax Credit has been instrumental in boosting the local economy of cities, towns and rural communities as it rewards developers who rehabilitate underused historic spaces for new businesses to use and attract new jobs. The CAPP Act also adds additional tax credits for including energy efficiencies in redevelopment projects and allows for any state historic tax proceeds to be exempt from federal tax.

Schumer launched a two-pronged plan last fall while visiting historic sites in Buffalo, Rochester and Schenectady to extend the New Markets Tax Credit (NMTC) program and expand the historic tax credit through the CAPP Act. Schumer secured the two-year extension of the NMTC program as a part of the fiscal-cliff deal, and in conjunction with the Historic Tax Credit, Schumer said developers will be encouraged to renovate underutilized historic buildings throughout Upstate New York.

"Upstate New York is full of historic buildings and landmarks that are calling out for redevelopment and rebuilding, and the expanded Historic Tax Credit answers that call -- it would spur development and create jobs in these communities," said Schumer. "We have seen the tremendous impact these programs have already had throughout cities like Buffalo, Rochester and the Hudson Valley, and the expansion of these credits will help continue this momentum to all pockets of the state. I will continue to push for the expansion of the Federal Historic Tax Credit in the coming months."

The CAPP Act increases the current 20 percent credit to 30 percent for projects under $7.5 million or less in qualified rehabilitation expenses and would incentivize the development of less-expensive projects that could attract small businesses. This is also a green bill that grants an additional two percent tax credit to projects that increase energy efficiency by 30 percent or more. Additionally, it allows for any State Historic Tax Credit to be tax exempt for federal purposes.

Schumer has long been focused on developing this plan to help revitalize historic buildings and rejuvenate impoverished neighborhoods, and during fiscal cliff negotiations at the end of 2012, he emphasized that it was critical for the New Markets Tax Credit to be extended. Schumer's successful efforts in securing the NMTC extension will now help development in downtown Buffalo, Rochester, Syracuse, the Hudson Valley and elsewhere throughout Upstate New York continue on its current path. By bringing hotels, restaurants, businesses and other projects to these locations, young people, businesses and other residents would be encouraged to stay in New York's downtowns. The NMTC is a critical tool to developers because it covers 39 percent of the investment costs for eligible development projects in urban areas. The NMTC program has been an important component of a number of rehabilitation projects, and its extension was key to continuing the progress that has been made in revitalizing Upstate New York's cities. The NMTC expired at the end of 2011, but was extended through 2013.

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