Boosting the Economy through Historic Preservation: Pennsylvania’s Historic Preservation Tax Credit Program Needs More Funding

In Pennsylvania, the Historic Preservation Tax Credit Program plays a vital role in preserving the state’s history and boosting its economy. The program not only restores and maintains historical structures but also converts them into income-generating properties. Rep. Jim Prokopiak, D-Bucks, who sponsored House Bill 2358, highlighted the positive economic impact of this program. He noted that every $1 million invested in historic rehabilitation projects creates 6.4 direct jobs and 5.6 indirect jobs in Pennsylvania, outperforming other industries.

However, the current cap of $5 million is insufficient to meet the funding needs as demand for the tax credit exceeds available funds. During the 2022-23 fiscal year, 31 projects requested $12.7 million in tax credits, but only 22 projects could be awarded credits due to the annual program cap. Prokopiak expressed the need to increase the cap to allow more deserving projects to receive the tax credit and preserve more of Pennsylvania’s architecture and history.

If passed, House Bill 2358 will raise the annual limit of the Historic Preservation Tax Credit from $5 million to $20 million starting in 2025. The bill aims to create jobs and boost the state’s economy by providing more funding for historic preservation projects. The bill will now move to the state Senate for further consideration before it can become law.

The passage of House Bill 2358 signals a step towards promoting economic development through historic preservation in Pennsylvania. By increasing funding for historic preservation projects, more jobs will be created, and greater economic investment will be attracted to the state.

In conclusion, House Bill 2358 has significant implications for Pennsylvania’s economy and history. If passed, it will provide more funding for historic preservation projects that not only restore and maintain historical structures but also contribute positively to the economy by creating jobs and generating income-generating properties.

Representative Prokopiak emphasized that by investing in historic preservation projects, Pennsylvania can generate more jobs while also preserving its rich history and heritage for future generations. With increased funding provided by this bill, Pennsylvania can continue to promote economic development through historic preservation programs that benefit both its people and its environment.

As such, this bill represents an important step towards ensuring that Pennsylvania remains a leader in economic growth while also protecting its unique cultural identity through effective historic preservation efforts.