@NCCapitol

@NCCapitol

McCrory offering new plan for historic tax credit

Posted February 2, 2015

— Gov. Pat McCrory plans to push a revised tax credit for rehabilitating historic properties across North Carolina in order to resurrect the economic development tool, Secretary of Cultural Resources Susan Kluttz said Monday.

The credit was eliminated in a tax reform package the General Assembly passed in 2013, and it formally expired on Jan. 1.

Since then, however, the North Carolina Metro Mayors Coalition has pushed an online petition – it had more than 4,600 signatures as of Monday – to garner support to restore the credit. Kluttz and other administration officials also have backed the tax credit, saying it promotes economic development in both urban centers and rural towns, creating jobs statewide.

Kluttz led state and local officials on a Monday morning tour of the American Tobacco campus in Durham to highlight the success of the tax credit. Capitol Broadcasting Co., the parent of WRAL, used the credit to transform the abandoned cigarette manufacturing complex into an integral part of Durham's downtown.

"You're talking about a lot of money involved in a large project and a very risky project based on where Durham was at that time," said Michael Goodmon, Capitol's vice president for real estate. "For a company like ours, the tax credit was critical. This project does not happen without historic tax credits."

Kluttz, a former Salisbury mayor, said she's heard that refrain often from developers.

"The numbers don't work" without the credit, she said. "These (credits) provide a level playing field for new construction versus coming in and helping a community by taking a deserted, empty building and using it."

The historic preservation tax credit has been used in 90 of North Carolina's 100 counties and has generated $1.6 billion of private investment since 1998, officials said.

Still, some lawmakers said the credit gave an unfair benefit to developers at the expense of other taxpayers. They have suggested that the state appropriate funds to help improve old buildings.

McCrory plans to revise the credit to make it more palatable to lawmakers, Kluttz said. She said the plan would offer smaller credits to larger projects, and the total cost of the program would be capped.

"There will still be enough incentive that developers can use it," she said. "It’s a compromise plan that we feel the legislators could and should accept."

"You have to invest in what matters to you," Goodmon said. "So, if the fabric of our communities are important and we want buildings repurposed and reused and downtowns brought back to life, then investing in those from a state perspective or even a local perspective is critical.

"The community realizes the importance of it," he continued. "In almost every community now, you have great repurposed historic structures."

32 Comments

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  • nerdlywehunt Feb 3, 2015

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    just more spin to continue the "trickle down" theory!!!! It is a handout to the wealthy!!!!! Pure and simple. If you want to give away tax credits give it to small businesses who create most of the jobs in this country!

  • Phil Larson Feb 3, 2015
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    "Culture has value", just not to the right wingers. In their cold tunneled vision world were something that doesn't turn a profit isn't worth having. Critical thinking, progressive ideas, the serenity one receives from the beauty of the arts are all meaningless to them. Sort of like zombies except for walking around saying "brains, brains, need brains", they say "money, money, must get more money for me". Too bad they're really not zombies, they could use some brains.

  • iopsyc Feb 3, 2015

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    What % ownership does the state have on homeowners' solar panels? What % ownership does the state have on children? You can get tax credits for both of those in NC.

    Tax credits are incentives, nothing more.

  • Matt Wood Feb 3, 2015
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    You must have missed the part where it generates even more tax revenue, tax revenue that goes to pay for services ALL citizens use! You don't have to own a percentage of a company to realize the benefits of your investment!

  • Matt Wood Feb 3, 2015
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    America is only about fiscal prosperity???? I must have missed that in civics and history classes... why do we even build memorials? Parks? Museums? CULTURE HAS VALUE!

  • nerdlywehunt Feb 3, 2015

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    so again, if we the taxpayers made an "investment" then how much of the business do we own? IT IS A PURE HANDOUT to the rich!!!!!!!!! Better to hand out money to small business owners if you are giving it away.

  • juliomercado Feb 2, 2015

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    If the GA can spend 10 dollars of tax revenues and it spurs the creation of 20 dollars in tax revenues, its pretty hard to call that a handout. I think the appropriate term is investment. Unless of course you like seeing the state's revenues sink.

  • nerdlywehunt Feb 2, 2015

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    Just answer the question instead of flipping and flopping around the fact that this is a flat out handout from the taxpayers.....WELFARE for the rich!!!!

  • Christopher Rose Feb 2, 2015
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    I would point out that this whole tax credit business for professional hipsters is essentially repackaged trickle down economics from the 80's with a facelift since the new urbanites prefer to think of themselves as progressive.

  • Christopher Rose Feb 2, 2015
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    Pedro, Tell that to the elderly folks getting squeezed out of the sir walter raleigh in dowtown raleigh. Or any of the south Raeigh dowtown neighborhoods. Every one of these projects could have included afordable housing (but didn't). Every one of them would have worked without tax credits. The only people who benefit from this arrangement are developers. The only thing innovative about the current arrangement is the wealthy are now displacing poor folks downtown rather than poor farmers in small towns around big cities or farmers. Development should benefit everybody. not just the privileged few. Don;t let raleigh be like San Francisco. Where the servant class are practily homeless. And don't segregate folks in lower income classes to suburban ghettos.

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