Op-Ed: Tax Credits Needed for Historic Preservation

By State Rep. Tom Murt

The Commonwealth of Pennsylvania is fortunate to have some of the most historically significant sites and resources in our great nation. Many of these historical sites are located in the greater Philadelphia area where countless tourists visit them. It’s one of the reasons so many film production companies shoot here. Every region across our Commonwealth shares this rich and vibrant history. 

Sadly, over the years, many historical sites, homes, and buildings have been destroyed in the name of development or progress. Private owners and investors frequently site how hard or expensive it can be to preserve or develop an older structure or around one, as reasons to simply knock it down and start over. I believe that if some incentives existed for property owners to restore, maintain, or rehabilitate their historical homes and buildings, they would do so. 

I recently supported legislation that would offer tax credits for the rehabilitation or preservation of qualified historical structures. This legislation, Senate Bill 1150, provides a tax credit to help revitalize historic areas of communities where no current economic incentive to renovate historical buildings exists. This legislation would provide a vital incentive for taxpayers to invest in and renovate historically significant structures throughout the Commonwealth. Many such privately owned historical properties exist in our local area.

Under Senate Bill 1150, a qualified taxpayer could apply to the Department of Community and Economic Development for a tax credit certificate. The tax credit application must include a qualified rehabilitation plan for the property or structure, which is a plan to rehabilitate a qualified historic structure that is recognized by the Pennsylvania Historical and Museum Commission. 

This plan must be consistent with the standards for rehabilitation and the guidelines for the rehabilitation of historic buildings as adopted by the U.S. Secretary of the Interior. 

Upon receipt of the application, the Pennsylvania Historical and Museum Commission would review the proposed rehabilitation plan, verify that the building is a qualified historic structure and recommend approval or disapproval in 30 days of receipt of the application. Qualified expenditures would include costs and expenses incurred by a qualified taxpayer in the restoration of a certified historic structure pursuant to an appropriate rehabilitation plan.

The tax credit program in Senate Bill 1150 wisely calls for these tax credits to be awarded equitably to each region of the Commonwealth. If credits allocated to a region are unclaimed they can be promptly reallocated to eligible projects in other regions. Tax credits are awarded on a first-come first-serve basis within the limitations established. 

Currently, there are no historic preservation tax credit provisions in the state tax code. State and local government do not have the needed funds to preserve nor own all of the historically significant properties in Pennsylvania. The historical preservation tax credits provided for in Senate Bill 1150 will be a very progressive step towards preserving the rich historical resources that we are fortunate to have in our Commonwealth. Hopefully, this legislation will soon become law.   

Rep. Thomas P. Murt serves the 152nd Legislative District which includes Lower Moreland, Upper Moreland, Hatboro and Bryn Athyn. The district also includes portions of Upper Dublin Township, and the Philmont Heights neighborhood of Northeast Philadelphia.