Historic Tax Credits are in the final tax legislation passed on 12/20/17

 
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On December 19 & 20, 2017, the House and Senate voted to pass the final version of the Tax Cuts and Jobs Act released by a joint House-Senate conference.  It includes the 20% Historic Tax Credit. 

The House and Senate Conference Committee reconciled the differences between the two versions of the tax bill. They eliminated the pre-1936 10% non-historic tax credit and included the 20% Historic Tax Credit (HTC) with a provision that it will be claimed over five years. Also, the Conference Committee included additional transition rule language that now clearly covers phased rehabilitations for which the taxpayer may select a 60-month period.

 President Trump is expected to sign the bill before the end of the year.

While advocates may be disappointed they could not fully restore the 20% HTC to current law and prevent the elimination of the 10% pre-1936 rehabilitation credit, there is plenty to celebrate! While hundreds of deductions and credits have been reduced or eliminated in tax reform, the HTC is expected to be retained as an incentive to protect and restore historic buildings in Maine and across the country. 

Fate of Federal Historic Tax Credits Remains Uncertain!

 
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Early on Saturday morning, the United States Senate passed its tax reform bill restoring the 20% Historic Tax Credit (HTC) with a provision that it will be claimed over five years. It can currently be claimed in a single year after a project is complete and the longer payout period is anticipated to reduce its value. The credit for pre-1936 10% non-historic “old-buildings” was eliminated.

The House passed a tax reform bill on November 16th eliminating both the 10% pre-1936 non-historic “old building” credit and the 20% HTC.

Tax reform legislation now moves to a House and Senate Conference Committee to reconcile the two versions.  While advocates are disappointed the 20% HTC wasn’t fully restored to current law and the 10% pre-1936 rehabilitation credit was eliminated, we are standing our ground, insisting on the Senate provision and that no further erosion in the program take place.

THIS WEEK please ask Rep. Poliquin to encourage the House Leadership to accept the improvements in the Senate bill! Thank Sen. Collins for supporting restoration of 20% HTC!

If your live in the 2nd District, have friends in the 2nd District, or have a connection to Rep. Poliquin please contact him and ask that he work with House leadership to accept the Senate’s 20% HTC provision as they reconcile differences in the House and Senate versions of the bill.

(207) 942-0583

Please contact Sen. Collins to express your appreciation for the 20% HTC passed in the Senate tax bill. Please urge her to communicate to Senate Republican Leaders and Chairman Hatch that they must not weaken important protections for the 20% HTC when they reconcile the House and Senate bills.

(207) 780-3575

Not sure what to say? Here is a sample message:

1. Introduce Yourself as a Constituent

Rep. Poliquin: Say “I am extremely concerned that the House eliminated the Historic Tax Credit, an important community redevelopment incentive available to revitalize our main streets, towns, and cities and preserve our heritage. Will you please work with House leadership to include the Senate’s 20% Historic Tax Credit provision in the final tax package when you work out the differences in the House and Senate bills?”

Sen. Collins: Say ““I would like to thank the Senator for supporting a tax reform bill that includes a 20% Historic Tax Credit in Senate tax reform bill. This is a significant improvement compared to the elimination in the House bill. Please communicate to Senate Republican Leaders and Chairman Hatch (R-UT) that they must not weaken important protections for the Historic Tax Credit when they reconcile the House and Senate bills.”

2. Explain why you value Historic Tax Credits, and that the redevelopment of historic buildings will not get done without the HTC.

  • HTCs created 5180 jobs in the past 10 years
  • HTCs added 1,440 housing units
  • HTCs generated $42.2 million in state and local taxes

3. Let them know about some previous and future HTC projects in Maine:  St. Joseph's Convent (Portland), Plummer School (Falmouth), The American Can Co. Building (Eastport), and the former Mayo Mill (Dover-Foxcroft)

4. If your Member of Congress has agreed to help, please remember to thank them and tell others about their support!

Recommendation to close South Portland's Mahoney Middle School and an update on the federal HTC program.

 
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Last week the Middle School Facilities Committee in South Portland voted to recommend closing Mahoney Middle School in favor of building a new consolidated middle school for grades 5-8 using state and local funds. Mahoney, formerly the South Portland High School when it was constructed 1923-1924, is located on a 15-acre site on Ocean Avenue in South Portland's Millcreek neighborhood. It is a significant historic building, both for its Beaux Arts architectural style and its community associations. If it is no longer used as a school, its future is unclear. The building has been determined by the Maine Historic Preservation Commission to be eligible for the National Register of Historic Places. It would be eligible for historic tax credits if it was rehabilitated for an income producing use. 

This week, as the Senate Finance Committee began to consider the tax reform bill, Senator Cassidy (R-LA) filed an amendment to restore the Historic Tax Credit from 10% to 20%  of qualified rehabilitation expenditures. As a budget savings measure, the amendment changes the HTC to be earned in installments over five years. Preservation advocates are hopeful that this amendment will be included in the bill later this week either by the chairman or by committee vote. This is a significant improvement over the House bill that would repeal the HTC entirely. The final tax package will need to be negotiated by the House and Senate later this year. Please continue to voice your concerns with your Congressional representatives and encourage them to support the HTC, undiminished, in tax reform legislation.

 

Historic Tax Credit Update!

The Senate’s Tax Reform Bill Slashes the Historic Tax Credit Program in Half!

 
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At the end of last week, the Senate Finance Committee released their version of a tax reform bill that reduces the Historic Tax Credit in half, from 20% to 10% for historic buildings. Additionally, the 10% pre-1936 non-historic “old” building credit is eliminated.

Also the House Ways and Means Committee passed The Tax Cuts and Jobs Act (TCJA) or H.R. 1, with the HTC entirely eliminated, on a party line vote 24-16, setting up full-House floor consideration early this week.

Your immediate ACTION is needed!

Please call today and ask your House and Senate members to retain the HTC in tax reform bills, undiminished. The fate of the HTC will be determined over the next few weeks, please advocate and ask others to advocate!

The House of Representatives is expected to consider and vote on the bill on the House floor this week. Also this week, the Senate will begin to mark-up and pass their version of the tax reform bill out of the Senate Finance Committee.

  • Please contact Representatives Pingree and Poliquin today and ask them to work with House leadership to insert the HTC back into the final House bill.
  • Please contact Senators Collins and King today and ask them to go to the Senate Finance Committee and Senate leadership, express support to retain the HTC in the Senate tax reform bill undiminished.

Call during office hours. Ask to speak to tax staff or ask for the email address of tax staff.

A suggested outline of your email message or phone call:

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or call (207) 780-3575

or call (207) 774-5019

or call (207) 883-1588

or call (207) 942-0583

Don't live in Maine? You can still help! Contact representatives in your state and tell them historic tax credits are important! Don't know who to contact? Go here to find out.

Help Save the Federal Historic Tax Credit!

Clockwise from top left: Grand Trunk Office Building, Chestnut Street Church, St. Hyacinth School, Baxter Library Building, and Arbor Street Fire Station - all restored in part with help from the federal historic tax credit program. 

Clockwise from top left: Grand Trunk Office Building, Chestnut Street Church, St. Hyacinth School, Baxter Library Building, and Arbor Street Fire Station - all restored in part with help from the federal historic tax credit program. 

Right now Congress is close to finalizing tax reform legislation. The Republican leadership's outline for tax reform, meant to guide the legislative process, failed to retain the historic tax credit (HTC), despite its successful 35-plus-year history of revitalizing small towns, creating jobs, and increasing economic activity, all while returning more tax revenue to the Treasury than it costs.

Without the federal tax HTC, our Maine State Tax Credit could also be at risk, and Maine's historic towns, cities, and Main Streets could lose an essential tool that helps drive economic growth.

The HTC has helped revitalize historic buildings in Greater Portland and across Maine. In greater Portland HTCs have been used to revitalize waterfront storage buildings, former churches, abandoned schools, and former industrial buildings into restaurants, offices and housing, bringing activity to our neighborhoods and increased tax revenue to our community.

Tax reform must not come at the expense of a program that more than pays for itself and has a proven track record of creating jobs, savings historic buildings, and bringing vitality to our communities. 

Please help us by calling or writing your lawmakers and urging them to keep the historic tax credit in any reform of the tax code!

 

or call (207) 780-3575. Thank Senator Collins for being the lead co-sponsor of the Historic Tax Credit Improvement Act of 2017, which has been introduced in the Senate. Ask Senator Collins to continue her support for this program and urge members of the Senate Finance Committee to keep the Historic Tax Credit in the reformed tax code.

or call (207) 883-1588. Ask Senator King to contact members of the Senate Finance Committee to voice his support for the Historic Tax Credit and ensure it is preserved in the reformed tax code.

or call (207) 774-5019. Thank Rep. Pingree for being a sponsor in the House of the Historic Tax Credit Improvement Act of 2017. Ask Rep. Pingree to voice her support for the Historic Tax Credit and ensure it is preserved in the reformed tax code.

or call (207) 942-0583. Thank Rep. Poliquin for being a sponsor in the House of the Historic Tax Credit Improvement Act of 2017 and for signing the off-committee letter to the House Ways and Means Committee from Republican legislators in favor of retaining the HTC in the tax reform bill. Ask Rep. Poliquin to continue his support for the Historic Tax Credit and ensure it is preserved in the reformed tax code.

2017 Places In Peril Announced!

Top Row (Left to Right) Dunn Memorial Church, Mahoney School, Peaks Island Amusement District, and Portland Motor Sales Building.Bottom Row (Left to Right) 19th Century African American Historic Resources of Portland, Bowery Beach School, and Hay &a…

Top Row (Left to Right) Dunn Memorial Church, Mahoney School, Peaks Island Amusement District, and Portland Motor Sales Building.

Bottom Row (Left to Right) 19th Century African American Historic Resources of Portland, Bowery Beach School, and Hay & Peabody's Seth Tomas Clock.

Concerned that a number of historic properties in the Portland area are in danger of being irreparably altered or destroyed, Greater Portland Landmarks (Landmarks) recently announced its 4th list of Places in Peril, to call attention to the threats facing character-defining, historically-significant properties in greater Portland. This year, Landmarks has identified seven buildings or areas that are at critical points where they could be permanently lost or diminished.

Landmarks is listing these properties to:

1.      Build community awareness about the importance of these properties and focus public attention on their significance in state and local history;

2.      Advocate for the preservation, protection, and in some cases, adaptive reuse of these properties so that they can continue to play a vital role in this area’s defining architectural landscape;

3.      Provide advice, convene people, and identify resources to preserve, protect and rehabilitate these properties.

The properties include:

1.      Portland Motor Sales Building (1963) (currently houses U-Haul), 411 Marginal Way, Portland

Significance: The Portland Motor Sales building is one of Portland’ most well-known Mid-Century Modern buildings, with its iconic folded roof as a character-defining feature of this style. It recently attained “historic” status as it is more than 50 years old.

Threat: The property is vulnerable to redevelopment in an area of rapid regrowth, because this style is typically undervalued and there are no preservation protections for this building or neighborhood.

2.      Hay & Peabody’s Seth Thomas Clock (1925), 749 Congress Street, Portland

Significance: The clock is a rare four-dial street clock that has a combination mechanical clockwork and electric motor. It is the only pole-mounted street clock built by the nationally renowned Seth Thomas Co. in the City.

Threat: The clock is in serious disrepair due to a lack of maintenance over the decades. The specialized skills required to fix the clock and its original mechanism, and the associated cost have been barriers to its being restored to working order.

 3.      Mahoney School (1923-1924), 240 Ocean Street, South Portland

Significance: Eligible for the National Register of Historic Buildings, the Mahoney Middle School is located on a 15-acre lot at the corner of a major transportation route into parts of South Portland and Cape Elizabeth. It was designed by noted Maine architectural firm Miller & Mayo, and is a showcase for the Beaux Arts Style of architecture, preferred for important civic buildings. 

Threat: The South Portland School District has received state funding to renovate or replace Mahoney, or consolidate its two middle schools. Depending on the consultant recommendations, the future of the building is at risk. No preservation protections exist on the building to prevent demolition, or to ensure its rehabilitation and guide future additions or changes.

 4.      Peaks Island Amusement District (1880-1930), Island Avenue, Peaks Island, Portland

Significance: Peaks Island in the late 19th century was famous for is summer entertainment and earned the nickname “Coney Island of Maine.” Greenwood Gardens was a portion of the Peaks Island shoreline transformed into an amusement park.

Threat: Much of the Amusement District has not been formally documented and holds no preservation protections. As the demand grows for higher density and water frontage in the area, significant changes threaten this area’s integrity.

5.      Dunn Memorial Church (1906-1907), 4 Brentwood Street, Portland

Significance: The building is an architecturally significant structure and well-known visual landmark on Stevens Avenue, and was determined eligible for the National Register of Historic Places. It is one of the few buildings in Portland designed by noted Bangor architect Victor Hodgins.

Threat: Improper use of mortar has led to decades of structural problems. The building faces extensive damage and an estimated $1.5 million to repair the bell tower. Concern for safety of passing pedestrians led the church to install a fence to keep people away from the stone tower.

6.      19th Century African American Historic Resources on Portland’s Peninsula

Significance: Few historic resources and buildings tell the story of the small but thriving community of African American citizens in 19th century Portland that contributed to its robust history. Three areas in particular, including Newbury Street, Lafayette Street, and the St. John-Valley Street neighborhood, contain buildings that historically represent this story.

Threat: Land values are so high that these neighborhoods are experiencing intense redevelopment, including teardowns for new construction. Most have not been researched and are not within existing historic districts, with the exception of the Abyssinian Meetinghouse, a locally-designated landmark. Therefore, no historic protections exist for these buildings, many of which are modest in size and detail.

 7.      Bowery Beach School (1855, altered 1985), 11 Wheeler Road, Cape Elizabeth

Significance: One of the last remaining schoolhouses that characterizes the one-room schoolhouses in the Cape Elizabeth/Portland region. Unlike others, this building has been located on its original site since construction and contains most of its original features and architecture.

Threat: A structural assessment shows the building’s framing needs repair from rot and rodent activity, and the current owner’s lack of funding threatens their ability to maintain the structure, putting it at risk.

Landmarks will continue to monitor the endangered properties in hopes that they can be removed from the list in the near future. Landmarks’ intention is to proactively work with property owners as much as possible to protect the properties for the future.

2017 Places in Peril Announced

2017 Places in Peril Announced

Concerned that a number of historic properties in the Portland area are in danger of being irreparably altered or destroyed, we announced our 4th list of Places in Peril, to call attention to the threats facing character-defining, historically-significant properties in greater Portland. This year, Landmarks has identified seven buildings or areas that are at critical points where they could be permanently lost or diminished.

Executive Director, Hilary Bassett said, these properties help define greater Portland. In every case, the properties we’ve identified are...

Woodford Food & Beverage: Resuscitating an Old Classic

Woodford Food & Beverage: Resuscitating an Old Classic

As they were rolling up their sleeves to start interior renovations of their future restaurant, Woodford Food & Beverage, Birch Shambaugh asked Fayth Preyer what she hoped to discover once they started peeling away decades of office use in the building at 660 Forest Avenue in Portland.  She let herself dream, “what if there were terrazzo floors?!”

Adaptive re-use is a strategy promoted by historic preservation that encourages developers to turn historic buildings into...