Pennsylvania’s House of Representatives recently passed House Bill 2358, which aims to boost the state’s economy by creating jobs. This legislation, sponsored by Rep. Jim Prokopiak, D-Bucks, focuses on increasing the Historic Preservation Tax Credit. The bill proposes raising the annual limit of the tax credit from $5 million to $20 million by the year 2025.
Prokopiak emphasized that Pennsylvania’s Historic Preservation Tax Credit Program plays a crucial role in preserving the state’s historical structures and contributing to the economy. He noted that investing $1 million in an historic rehabilitation project generates 6.4 direct jobs and 5.6 indirect jobs, outperforming other industries in the state.
The bill highlights that, among the 37 states with a similar tax credit, Pennsylvania has the fourth-lowest cap. Prokopiak argued that the proposed increase in investment is necessary due to high demand for funding exceeding the current $5 million cap. He stated that many deserving projects are not receiving benefits due to limited availability of funds under the current cap.
During the 2022-23 fiscal year, Pennsylvania Historical and Museum Commission received requests for $12.7 million in tax credits for 31 historic rehabilitation projects.
However, only 22 projects were awarded credits due to current $5 million cap.
Prokopiak believes that raising the cap will allow more projects to benefit from tax credit resulting in preservation of Pennsylvania’s architecture and history while creating jobs and driving economic growth.
This bill is now being considered by the state Senate before it can become law.
In summary, House Bill 2358 aims to create jobs and boost Pennsylvania’s economy by increasing funding for its Historic Preservation Tax Credit program. By raising this cap from $5 million to $20 million by 2025, more historic rehabilitation projects will receive funding through this program while generating more direct and indirect job opportunities in this industry.