Posted in government, Shockoe Bottom, Shockoe Slip
Tagged historic tax credit
The RTD article and the NBC12 clip do not contradict each other. New tax treatment on these properties could have a dramatic effect on historic redevelopment in Richmond. Hundreds of millions worth of historic buildings have been completed with tax credits. I attended the Venture Richmond Downtown Development Conference and Lucy Meade cited over $800,000,000 worth of new development underway now, much of which involved credits. The John Marshall renovation is fully dependent on credits to complete their plan. If the IRS issues clawback provisions on a change of posture toward the tax treatment of these deals, the total economic effect to Richmond’s historic neighborhoods and developers who use these credits could be disastrous.
How shortsighted of the IRS. The historic tax credits attract buyers for both commercial and residential projects and have helped neighborhoods and businesses in Richmond. They should properly police the paperwork and projects to ensure the work is being done as intended, but outright cancellation of the program due to a few cases of abuse is not going to help the situation anywhere.
I personally have never understood why the federal historic tax credit only applies to those who renovate and rent a property, not those who renovate a property to sell to a family. In my mind this system helps support the type of landlords that are holding parts of historic Richmond back from true revitalization.
I support the historic tax credit program, though Richmond has certainly seen a lot of abuse and fraud by criminal developers.
In other states, historic tax credits are combined with green building tax credits to make it affordable to totally renovate old school buildings and make them gorgeous and energy- efficient schools. It’s worth noting that Virginia has the oldest school buildings in the country and Richmond has some of the oldest school buildings in the state.