State Historic Rehabilitation Housing Tax Credit Proposal Needs Support!

The N.H. Preservation Alliance enthusiastically supports SB364 and its state historic rehabilitation tax credit and urges others to voice their support, ask questions and offer suggestions.

Update: Senate Ways and Means voted 5-0 to send an amended version of the bill to the full Senate which also endorsed the proposal. Note that this approved version retains the credit but removed a proposed appropriation to the Invest New Hampshire fund. The Preservation Alliance is very disappointed that the Senate Finance Committee then voted to send the proposal to interim study. The full Senate considers that recommendation on March 21.

Here is a link to the bill and a list of its sponsors: https://www.gencourt.state.nh.us/bill_status/legacy/bs2016/billText.aspx?sy=2024&v=SI&id=1941&txtFormat=html

More about the tool:

State historic rehabilitation tax credits are proven, transformational tools that the Preservation Alliance is eager to adapt for the Granite State. They will help provide needed housing for people, maintain and enhance the character of our communities, and contribute to the vitality of local economies.

Senator Dan Innis (R-Bradford) released the following statement on February 8, 2024 on the Senate passing both SB 364-FN and SB 454-FN: Affordable housing has been New Hampshire’s toughest economic challenge. SB 364-FN will provide historic housing preservation tax credits for Granite Staters and SB 454-FN will double dedicated funding for the Affordable Housing Fund through the Real Estate Transfer Tax. New Hampshire housing permits for multifamily housing projects have increased by 41% since 2021 according to data from New Hampshire Business and Economic Affairs. Affordable housing is critical to aiding our workforce. The Senate has made it a priority, which is why last year’s budget appropriated $25 million to the Affordable Housing Fund, $10 million to InvestNH, and created $5 million for the Housing Champions program. I am glad my Senate colleagues recognize the continued need for increasing affordable housing in our state.

Nearly forty states around the country have and use versions of this tool to accelerate the revitalization of older buildings for new uses like housing. State rehabilitation tax credit programs leverage private investment, increase the amount of rehabilitation occurring in a state, supports high-wage jobs, conserve energy and resources, and benefit a broad range of communities. 

The bill offers the following major elements and puts the development of the details in a public rule-making process led by New Hampshire Housing Finance Authority:

  • Eligible properties include eligible for state or national register, certified on the state or national registers, and others

  • Focus on creation of housing units

  • 65% credit against 2 state business taxes

  • a $10 million annual cap with some carry-forward provisions

Arron Sturgis, a N.H. Preservation Alliance board member who works on old churches, barns and other buildings extensively in New Hampshire and Maine, described how he’s seen the many benefits of the state historic preservation tax credit in Maine. He believes it has tremendous potential to provide essential housing while it improves property values, helps with workforce issues, and improves quality of life for all New Hampshire residents.

Questions? Suggestions? Contact Jennifer Goodman, N.H. Preservation Alliance at jg@nhpreservation.org.

 

Grants and LegislationJennifer Goodman