Annual Report on the Economic Impact of the 

Federal Historic Tax Credit for FY 2018

National Park Service

U.S. Department of the Interior

Technical Preservation Services
The executive summary is based on the findings of a National Park Service-funded study 

undertaken through a cooperative agreement with Rutgers University’s Center for Urban 

Policy Research. Rutgers University is responsible for the content of the study. Some additional 

demographic analysis was provided courtesy of PolicyMap. The National Trust for Historic 

Preservation assisted the National Park Service in the preparation of the case studies.

September 2019

Jack Tar Motor Lodge, Durham, North Carolina. 

Photo: Andrew Cebulka 

 

Pier 2, Fort Mason, San Francisco, California.

Photo: Bruce Damont

 

L. N. Gross Company, Kent, Ohio.

Photo: Diana Wellman

 
Beyond the National Park System, the National Park Service (NPS) through its Cultural 

Resources, Partnerships, and Science programs is part of a national preservation 

partnership working to promote the preservation of historic resources in communities 

small and large throughout the country. For the past 41 years the NPS, in partnership with the State 

Historic Preservation Offices, has administered the Federal Historic Preservation Tax Incentives Program. The 

program provides a 20-percent Federal tax credit to property owners who undertake a substantial rehabilitation 

of a historic building in a business or income-producing use while maintaining its historic character. 

Commonly referred to as the Historic Tax Credit (HTC), the HTC is designed to not only preserve and rehabilitate historic buildings, but to also promote the economic revitalization of older communities in the nation’s cities 

and towns, along Main Streets, and in rural areas. Since the program’s inception in 1976, the NPS has certified 

the rehabilitation of more than 44,000 historic properties throughout the United States, with the HTC leveraging 

over $162 billion in private investment in historic rehabilitation and generating almost 2.7 million jobs. 

In Fiscal Year (FY) 2018, 1,013 completed historic rehabilitation projects were certified by the NPS, representing 

$6.9 billion in estimated rehabilitation costs that qualify for the 20% Federal tax credit. (Another 1,479 proposed 

projects were also approved in FY 2018.) Many of these projects involved buildings that were abandoned or 

underutilized and in need of substantial rehabilitation to return them to, or for their continued, economic 

viability. The HTC program also is an important tool in helping to revitalize older, economically depressed 

communities. Based on project data provided by the NPS, PolicyMap determined that 51% of the certified 

rehabilitation projects in FY 2018 were located in low and moderate income census tracks and 75% were located 

in economically distressed areas.

A common misconception about the HTC program is that it only supports large projects and projects in 

large cities. Almost half (46%) of all projects in FY 2018 were under $1 million, and 18% were under $250,000. 

PolicyMap determined that a quarter of all certified rehabilitation projects in FY 2018 were located in 

communities with under 50,000 in population and 15% in communities with under 25,000 in population. 

The NPS issues annual reports on the HTC program quantifying the number of historic rehabilitations certified 

each year, their reported costs, and other statistical information on the program. The annual report is available 

on the NPS Technical Preservation Services website at http://www.nps.gov/tps/tax-incentives.htm, along with 

information on the HTC program in general.

For FY 2018, the NPS also turned to the Rutgers University Center for Urban Policy Research, through a 

cooperative agreement, to undertake and report on the economic impacts of the HTC for the fiscal year ending 

September 30, 2018. This report highlights its main findings. An economic model originally developed by the 

Center under a series of grants from the NPS was utilized in the preparation of this report. The economic model 

was utilized by the Center for their eight prior reports on the Federal HTC, as well as for a number of other 

economic reports for state governments and others. 

As the Center’s report identifies, the level and breadth of the positive economic impacts resulting from the 

Federal HTCs in FY 2018 are quite significant. The report also includes information on the cumulative economic 

impact of the Federal Historic Preservation Tax Incentives Program for the past 41 years, starting in 1977-78 with 

the first completed rehabilitation project to be certified by the NPS under the program. Lastly, the report includes 

four case studies of HTC projects certified in FY 2018. The program remains the Federal government’s largest 

and most effective program supporting historic preservation and community revitalization. 

Technical Preservation Services, National Park Service

September 2019

A Message from the National Park Service

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2018 1
Statler Hotel, Dallas, Texas. 

Photo: Angela Garrison

Cadillac House, Lexington, Michigan.

Photo: The Roxbury Group

Fells Point Recreation Pier, Baltimore, 

Maryland. Photo: Curtis Martin

fiscal

year

2018

select

projects

Parkside Candies, Buffalo, New York.

Photo: Mike Puma

Parkside Candies, Buffalo, New York.

Photo: Mike Puma
Bricker Price Block, Earlham, Iowa. 

Photo: Courtesy of Bricker Price Block.  

Illinois Automobile 

Club (Chicago 

Defender Building), 

Chicago, Illinois. 

Photo: John D. Cramer

Creek Council House, 

Okmulgee, Oklahoma.

Photo: John Griffin

Park Addition School, 

Cheyenne, Wyoming.

Photo: Brian Beadles

Willow Grove Plantation, Baton Rouge, Louisiana. 

Photo: Melissa Oivanki

El Vado Motor Court, 

Albuquerque, New 

Mexico. Photo: Courtesy 

El Vado Motor Court 

Merrill-Beasley House, Jackson, Mississippi. 

Photo: Katherine Anderson
Overview of the Rutgers Economic Analysis

The Federal Historic Tax Credit (HTC) is a Federal income tax credit that promotes the rehabilitation of income-producing 

historic properties. This study examines the economic impacts of the HTC (a 20-percent credit since 1986) by analyzing 

the economic consequences of the project it supports. This analyses focuses on the economic effects of these projects 

during construction, quantifying the total economic impacts (i.e., direct as well as multiplier, or secondary, economic 

consequences) for the Fiscal Year 2018, beginning October 1, 2017, and ending September 30, 2018, and for the period 

since the program’s inception (beginning in FY 1978, with the certification of the first completed rehabilitation project 

under the program). The study utilizes the Preservation Economic Impact Model (PEIM), a comprehensive economic model 

development by Rutgers University Center for Urban Policy Research for the National Park Service. 

The current analysis applies the PEIM to both cumulative (FY 1978 through FY 2018) HTC-related historic rehabilitation 

investment (about $162.0 billion in inflation-adjusted 2018 dollars) and single-year (FY 2018) HTC-related rehabilitation 

investment (about $7.7 billion). It considers the effects of the cumulative $162.0 billion rehabilitation investment as if it 

applied to one year (2018), rather than backdating the PEIM for each of the 41 years in the study period. It also considers 

the full rehabilitation investment associated with the HTC (e.g., $7.7 billion in FY 2018), and not the somewhat lower 

amount reported by the National Park Service based on estimated qualified rehabilitation costs indicated by property 

owners requesting certification of rehabilitation for purposes of the tax credit (e.g., $6.9 billion in FY 2018).1

 PEIM results include many fields of data. The fields most relevant to this study include:

JOBS Employment, both part- and full-time, by place of work, estimated using the typical job 

characteristics of each industry.

INCOME “Earned” or labor income; specifically, wages, salaries, and proprietor income.

WEALTH Value-added—the sub-national equivalent of gross domestic product (GDP). 

OUTPUT The value of shipments, as reported in the Economic Census.

TAXES Tax revenues generated by the activity, which include taxes to the Federal government 

and to state and local governments.

1 The HTC has a multi-step application process, encompassing Part 1 (evaluation of the historic significance of the property), 

Part 2 (description of the proposed rehabilitation work), and Part 3 (request for certification of completed work). Both 

Part 2 and Part 3 rehabilitation statistics include only costs considered “eligible” or “qualified” for the tax credit under 

the Internal Revenue Code (Qualified Rehabilitation Expenditures, or QREs), as opposed to “ineligible” or “nonqualified” 

costs. While the ineligible/nonqualified expenses do not count for tax credit purposes, they are a component of the total 

rehabilitation investment or cost borne by the HTC property owner. In practical terms, the total rehabilitation investment, 

including ineligible/nonqualified costs, helps pump-prime the economy. For example, in FY 2018, the Part 3 certified 

investment amounted (Part 3 estimated rehabilitation costs (QRE)) to about $6.9 billion, while the total rehabilitation 

outlay associated with the HTC was an estimated $7.7 billion.

Executive Summary

Pier 2, Fort Mason, San Francisco, California.

Photo: Bruce Damont

 

4 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY
The following table summarizes the impacts of the HTC in inflation-adjusted 2018 dollars for each of these economic 

measures for the cumulative period FY 1978–2018 and for FY 2018. 

National Total Impacts 

2018 $ billion

$162.0 billion 

CUMULATIVE (FY 1978–2018)2

historic rehabilitation 

expenditures results in:

$7.7 billion 

ANNUAL FY 2018

historic rehabilitation 

expenditures results in:

Jobs (person-years, in thousands) 2,676.5 128.5

Income ($ billion) $129.6 $5.4

Output ($ billion) 354.0 14.4

GDP ($ billion) 176.2 7.4

Taxes ($ billion) 50.5 2.0

 Federal ($ billion) 35.9 1.3

 State ($ billion) 7.2 0.3

 Local ($ billion) 7.4 0.4

Federal HTC-Assisted Rehabilitation

National Economic Impacts

The benefits of investment in HTC-related historic rehabilitation projects are extensive, increasing payrolls and 

production in nearly all sectors of the nation’s economy. The cumulative effects for the period of FY 1978 through FY 2018 

are illustrative. During that period, $162.0 billion in HTC-related rehabilitation investment created 2,677,000 jobs and $176.2 billion 

in GDP, about 30 percent of which (811,000 jobs and $51.9 billion in GDP) was in the construction sector. This is as one would 

expect, given the share of such projects that require the employment of building contractors and trades. Other major beneficiaries 

were the service sector (486,000 jobs, $23.4 billion in GDP), the manufacturing sector (561,000 jobs, $46.4 billion in GDP), 

and the retail trade sector (384,000 jobs, $12.6 billion in GDP). As a result of both direct and multiplier effects, and due to the 

interconnectedness of the national economy, sectors not immediately associated with historic rehabilitation, such as agriculture, 

mining, transportation, and public utilities, benefit as well. (Exhibit 2.2). 

The most recent economic benefits of the federal HTC are also most impressive. In FY 2018, HTC-related investments generated 

approximately 129,000 jobs, including 47,000 in construction and 29,000 in manufacturing, and were responsible for $7.4 billion in 

GDP, including $2.4 billion in construction and $2.1 billion in manufacturing. HTC-related activity in FY 2018 generated $5.4 billion 

in income, with construction ($2.0 billion) and manufacturing ($1.3 billion) reaping major shares. (See Exhibit 2.1 for more details.)

2 Changes in the official annual reported rates of inflation caused the Rutgers research team to make various changes in the 

calculations concerning the economic impacts of the impacts of the HTC over time. The changes are particularly notable over 

the past few years when job counts ensuing from the HTC had to be adjusted.

Kunia Camp, Kunia, Hawaii.

Photo: Mason Architects, Inc.

 

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2018 5
The HTC National and State Economic Impacts

A breakdown by state of the national economic benefits, both for FY 2018 and cumulatively for the last five fiscal years 

(FY 2014–2018), shows the benefits of the program on the national economy. (See Exhibits 1.1 and 1.2) 

HTC-related historic rehabilitation benefits state economies as well as the national economy. For example, in Missouri in FY 2018, 

Federal HTC-related rehabilitation activity totaled about $385.2 million. The national impacts of that investment included 6,599 

jobs, an additional $732.3 million in output, $274.7 million in income, $363.9 million in GDP, $63.8 million in Federal taxes, and 

$86.6 million in total taxes. In Missouri alone, the same $385.2 million in HTC-related spending resulted in 3,684 jobs, $385.2 

million in output, $171 million in income, $205.6 million in gross state product (GSP), and $44.5 million in total taxes.

HTC Impacts Compared with those of Non-Preservation Investments 

How does HTC-related historic rehabilitation perform as an economic pump-primer compared with other, non-preservation 

investments? In short, quite well.

Numerous studies conducted by Rutgers University have shown that in many parts of the country, a $1 million investment in 

historic rehabilitation yields markedly better effects on employment, income, GDP, and state and local taxes than an equal 

investment in new construction or many other economic activities (e.g., manufacturing or services). These findings demonstrate 

that historic rehabilitation, combined holistically with the many activities of the broader economy, delivers a commendably 

strong “bang for the buck.” 

The Cost of the HTC

The HTC is a tax expenditure and has a public cost. In the simplest terms, the Federal cost of the HTC is equal to the credit 

percent (20 percent since 1986) applied to the Part 3 (“qualified for tax credit”) estimated investment.3 Applying that calculation, 

the federal HTC costs the U.S. Treasury approximately $30.8 billion (in inflation-adjusted 2018 dollars) over the period of FY 1978 

through FY 2018, while the cost for projects certified by the National Park Service in FY 2018 alone was about $1.379 billion.4 

Weighing against these costs are the significant economic impacts (i.e., jobs, income, GDP, and output) and tax revenue (Federal, 

state, and local) generated by HTC-aided rehabilitations and documented in this study. An important finding is that the HTC 

yields a net benefit to the U.S. Treasury, generating $35.9 billion in federal tax receipts over the life of the program, compared 

with $30.8 billion in credits allocated. (See Exhibit 3)

3 See footnote 1, on page 4.

4 These estimates are based on the full utilization of the credits in cases of certified rehabilitations. For various reasons, not all completed 

projects certified by the National Park Service may ultimately utilize the credit. Their economic impact, nevertheless, remains.

Beneficial Savings Fund Society, entrance (left) and courtroom (right), Philadelphia, Pennsylvania. 

Photos: Robert Powers

 

6 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY
Fiscal Year 2018 Highlights

Fiscal Year 1978 — Fiscal Year 2018 

Cumulative HTC Impacts

2018 POSITIVE IMPACTS 

on the national economy:

$14.4 billion in output, 

$7.4 billion in GDP, 

$5.4 billion in income, and 

$2.0 billion in taxes, including 

$1.3 billion in Federal tax receipts.

129,000 

New jobs created and billions 

of dollars in total (direct and 

secondary) economic gains.

51% Projects in low- and moderateincome census tracts.*

75% Projects in economically 

distressed areas.*

25% Projects in communities of 

less than 50,000 people.*

15% Less than 25,000

10% 25,000 to 49,999

10% 50,000 to 99,999

19% 100,000 to 249,999

28% 250,000 to 500,000

18% Over 500,000

Projects by Community Size (Population)*

$7.7 billion

total in rehabilitation investment.

CUMULATIVE POSITIVE IMPACTS

on the national economy: 

$354.0 billion in output, 

$176.2 billion in GDP, 

$129.6 billion in income, and 

$50.5 billion in taxes, including 

$35.9 billion in Federal tax receipts.

An inflation-adjusted (2018 dollars) $30.8 billion HTC 

cost encouraged a five times greater amount of historic 

rehabilitation, $162.0 billion.

2.7 million

New jobs created and billions 

of dollars in total (direct and 

secondary) economic gains.

These leverage and multiplier 

effects support the economic 

argument that the Federal HTC is a 

strategic investment that works.

*Courtesy of PolicyMap (County subdivision data, 2013–2017 U.S. Bureau of the Census American Community Survey, and New Markets 

Tax Credit eligibility data (not including severe distress and non-metropolitan areas), U.S. Department of the Treasury, 2011–2015).

$162.0 billion

in cumulative rehabilitation investment.

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2018 7
Exhibit 1.1 Fiscal Year 2018

National Economic and Tax Impacts of Federal HTC-Related Investment by State

SOURCE: Technical Preservation Services, National Park Service. Calculations by Rutgers University.

State

Total 

Rehabilitation 

Costs

(in 2018 $ millions)

National Economic Impacts Tax Impacts

(in 2018 $ millions) Employment 

(Jobs)

(in 2018 $ millions)

Income GDP Output Local State Federal Total

Alabama $115.4 2,130 $73.2 $137.6 $189.4 $2.0 $3.0 $17.6 $22.7

Alaska 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Arizona 45.0 776 26.6 34.3 86.5 42.6 27.5 7.5 77.6

Arkansas 96.2 1,992 66.9 99.9 177.8 1.9 3.5 16.1 21.5

California 147.3 2,196 106.7 139.4 288.1 3.7 5.9 27.0 36.7

Colorado 15.3 981 10.8 14.9 28.8 0.4 0.5 2.5 3.4

Connecticut 61.7 884 43.0 59.8 112.9 3.3 2.8 9.9 15.9

Delaware 6.5 104 4.6 6.3 12.2 0.3 0.3 1.0 1.7

District of Columbia 339.1 4,927 228.6 309.2 597.0 22.8 9.1 46.3 78.3

Florida 14.1 246 10.0 13.5 26.4 0.7 0.4 2.4 3.5

Georgia 187.0 3,692 129.8 190.8 342.3 8.8 8.6 31.6 49.0

Hawaii 6.4 91 4.3 6.1 11.2 0.2 0.3 0.9 1.4

Idaho 0.4 6 0.2 0.3 0.6 0.0 0.0 0.0 0.1

Illinois 266.6 3,931 194.1 250.5 520.7 8.4 7.7 46.7 62.8

Indiana 65.3 1,144 46.7 62.8 124.6 21.5 14.3 11.1 46.9

Iowa 204.4 3,694 138.4 206.7 359.7 6.8 6.1 32.1 45.0

Kansas 60.0 1,090 42.0 58.1 111.2 14.2 9.9 9.7 33.7

Kentucky 63.2 1,210 43.8 61.8 115.8 6.3 5.0 10.1 21.4

Louisiana 319.5 5,644 227.7 298.3 605.2 11.1 11.6 52.4 75.2

Maine 21.5 326 12.7 19.0 41.3 1.0 0.9 3.4 5.3

Maryland 143.9 2,223 101.0 135.8 266.9 4.7 4.2 23.0 31.9

Massachusetts 369.9 4,807 259.6 348.3 688.8 9.9 11.9 59.7 81.5

Michigan 264.1 4,196 187.1 250.7 498.2 7.8 9.5 43.6 61.0

Minnesota 85.8 1,351 60.2 81.1 160.2 3.0 3.4 13.8 20.3

Mississippi 27.3 569 19.0 27.0 50.3 2.1 1.6 4.4 8.1

Missouri 385.2 6,599 274.7 363.9 732.3 10.6 12.2 63.8 86.6

Montana 0.4 7 0.2 0.3 0.6 0.0 0.0 0.1 0.1

Nebraska 50.9 975 34.8 50.3 91.0 10.5 7.2 7.9 25.6

Nevada 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

New Hampshire 0.0 0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

New Jersey 66.2 950 47.0 61.8 125.7 1.3 2.0 10.8 14.1

New Mexico 5.8 112 4.1 5.7 11.0 0.3 0.2 1.0 1.5

New York 934.0 15,452 665.5 888.9 1,757.6 60.5 51.3 160.6 272.4

North Carolina 122.8 2,301 86.5 123.0 230.1 3.0 4.3 21.0 28.3

North Dakota 12.2 215 8.5 11.3 22.5 0.4 0.3 1.8 2.5

Ohio 821.4 14,755 584.9 809.3 1,559.8 35.7 30.0 142.5 208.2

Oklahoma 44.9 885 32.0 44.9 85.7 1.1 1.6 7.7 10.3

Oregon 24.6 435 17.8 23.4 47.9 0.6 0.9 4.3 5.8

Pennsylvania 466.8 7,587 338.9 449.2 910.2 15.6 13.2 82.2 110.9

Rhode Island 219.9 3,355 150.0 225.2 395.6 8.0 7.0 34.4 49.3

South Carolina 31.5 589 21.8 31.9 57.5 0.9 1.0 5.2 7.1

South Dakota 4.1 81 2.9 3.7 7.6 0.1 0.1 0.6 0.8

Tennessee 346.2 6,123 242.7 335.8 645.3 9.8 7.4 56.5 73.6

Texas 622.4 10,054 450.9 589.6 1,219.0 21.5 12.3 111.1 144.9

Utah 1.3 25 0.9 1.3 2.5 0.0 0.0 0.2 0.3

Vermont 4.5 80 3.3 4.3 8.6 0.2 0.2 0.7 1.1

Virginia 411.9 6,933 294.8 398.4 784.9 10.7 13.8 70.5 95.1

Washington 15.5 248 11.1 15.1 29.8 0.7 0.6 2.7 4.0

West Virginia 9.0 173 6.2 9.1 16.5 0.3 0.3 1.5 2.0

Wisconsin 134.6 2,343 95.4 131.1 252.9 4.7 5.4 22.7 32.9

Wyoming 0.8 18 0.6 0.9 1.7 0.0 0.0 0.2 0.3

Totals $7,662.8 128,505 $5,412.6 $7,390.6 $14,412.4 $380.1 $319.5 $1,282.9 $1,982.5

8 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY
Exhibit 1.2 Cumulative Fiscal Years 2014–2018

National Economic and Tax Impacts of Federal HTC-Related Investment by State 

SOURCE: Technical Preservation Services, National Park Service. Calculations by Rutgers University.

State

Total 

Rehabilitation 

Costs

(in 2018 $ millions)

National Economic Impacts Tax Impacts

(in 2018 $ millions) Employment 

(Jobs)

(in 2018 $ millions)

Income GDP Output Local State Federal Total

Alabama $253.3 4,538 $160.7 $302.1 $415.7 $4.5 $6.6 $38.6 $49.8

Alaska 0.0 - 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Arizona 127.9 2,124 75.6 97.4 246.1 121.0 78.1 21.3 220.6

Arkansas 192.7 3,866 134.1 200.2 356.3 3.9 7.0 32.3 43.1

California 825.4 11,639 598.2 781.4 1,614.7 20.8 33.3 151.7 205.8

Colorado 117.2 7,109 82.7 114.6 220.7 3.0 3.8 19.5 26.4

Connecticut 541.1 7,383 376.6 523.6 989.7 28.5 24.2 86.8 139.4

Delaware 43.1 658 30.6 41.8 80.9 2.0 2.1 6.9 10.9

District of Columbia 511.0 7,301 344.4 465.8 899.6 34.4 13.8 69.9 117.9

Florida 202.5 3,298 143.1 193.7 379.2 10.5 6.3 34.1 50.9

Georgia 369.3 7,082 256.3 376.9 676.1 17.4 16.9 62.4 96.7

Hawaii 7.5 106 5.0 7.2 13.1 37.8 44.7 163.9 246.4

Idaho 12.8 234 8.6 12.4 22.9 0.3 0.3 1.8 2.5

Illinois 2,128.2 29,578 1,549.3 1,999.5 4,156.3 67.5 61.2 372.7 501.4

Indiana 295.8 4,941 211.4 284.4 564.5 97.4 65.0 50.4 212.7

Iowa 831.7 14,429 563.1 840.7 1,463.0 27.9 24.8 130.4 183.1

Kansas 280.2 4,862 195.9 271.4 519.3 66.1 46.1 45.0 157.2

Kentucky 375.8 6,887 260.2 367.4 688.3 37.6 30.0 59.9 127.4

Louisiana 1,643.6 27,681 1,171.5 1,534.6 3,113.3 57.3 59.7 269.6 386.7

Maine 291.1 4,174 171.2 257.2 558.2 13.2 12.3 46.1 71.6

Maryland 848.3 12,369 595.6 800.9 1,573.9 27.5 24.9 135.8 188.3

Massachusetts 1,874.0 23,206 1,315.1 1,764.3 3,489.7 49.9 60.3 302.4 412.7

Michigan 1,006.2 15,306 712.9 955.1 1,898.2 29.8 36.2 166.2 232.3

Minnesota 1,139.6 17,033 800.2 1,077.8 2,127.9 40.0 45.3 183.8 269.0

Mississippi 106.1 2,097 73.8 104.7 195.1 7.9 6.4 17.1 31.6

Missouri 1,780.9 29,114 1,270.2 1,682.8 3,386.1 49.2 56.2 295.0 400.4

Montana 18.9 345 13.2 18.6 34.7 0.7 0.6 3.0 4.3

Nebraska 240.0 4,362 164.0 237.3 429.2 49.6 33.8 37.2 120.5

Nevada 1.4 19 0.9 1.3 2.5 0.0 0.0 0.2 0.3

New Hampshire 58.6 831 40.8 56.7 108.3 2.2 0.8 9.4 12.4

New Jersey 574.7 7,805 407.9 536.7 1,091.9 11.3 16.9 94.0 122.3

New Mexico 35.9 647 25.5 35.0 68.0 1.5 1.5 5.9 9.0

New York 4,105.5 65,052 2,925.3 3,907.1 7,725.6 266.1 225.4 705.8 1,197.2

North Carolina 894.6 15,902 630.2 896.1 1,676.1 21.6 31.3 153.0 206.0

North Dakota 24.9 426 17.4 23.0 45.9 0.8 0.7 3.7 5.2

Ohio 2,402.9 41,559 1,711.1 2,367.5 4,563.2 104.4 87.8 416.7 609.0

Oklahoma 378.9 7,070 269.8 378.6 723.5 9.2 13.1 65.0 87.3

Oregon 179.8 2,995 130.5 171.2 350.0 4.8 6.3 31.4 42.3

Pennsylvania 1,869.8 28,965 1,357.4 1,799.3 3,646.0 62.3 52.9 329.2 444.4

Rhode Island 571.9 8,376 390.1 585.7 1,028.7 20.7 18.1 89.3 128.1

South Carolina 331.4 5,915 229.9 336.1 605.5 9.5 10.6 55.1 75.3

South Dakota 17.8 335 12.5 16.2 33.0 0.5 0.3 2.7 3.6

Tennessee 463.1 8,066 324.7 449.1 863.0 13.1 9.9 75.5 98.5

Texas 1,108.0 17,470 802.7 1,049.5 2,170.0 38.2 22.0 197.7 258.0

Utah 39.4 686 27.5 38.7 73.0 1.0 1.3 6.5 8.8

Vermont 104.2 1,735 75.5 99.0 199.9 4.1 5.2 16.9 26.3

Virginia 1,786.7 28,727 1,278.6 1,728.1 3,404.5 46.2 60.0 306.0 412.4

Washington 259.5 3,934 186.1 252.1 498.6 12.0 9.4 44.7 66.2

West Virginia 55.8 1,023 38.7 56.0 102.0 1.6 2.0 9.1 12.7

Wisconsin 500.4 8,396 354.7 487.6 940.5 17.6 20.2 84.4 122.3

Wyoming 2.7 56 2.0 3.0 5.6 0.1 0.1 0.6 0.9

Totals $31,832.1 507,714 $22,523.4 $30,587.4 $60,038.0 $1,554.7 $1,395.7 $5,506.9 $8,458.1

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2018 9
Exhibit 2.1 National Economic and Tax Impacts of Federal HTC-related Activity

FY 2018 (HTC Investment: $7.7 billion)

Gross Domestic Product by Sector from Federal Historic Preservation Investment $7,391 

million, FY 2018 (millions of 2018 $)

Agriculture 22

Agri. Serv., Forestry, & Fish 43

Mining 103

Construction 2,401

Manufacturing 2,101

Transport. & Public Utilities 384

Wholesale 258

Retail Trade 458

Finance, Ins., & Real Estate 594

Services 997

Government 30

Income Created by Sector from Federal Historic Preservation Investment $5,413 

million, FY 2018 (millions of 2018 $)

Agriculture 7

Agri. Serv., Forestry, & Fish 23

Mining 60

Construction 1,998

Manufacturing 1,263

Transport. & Public Utilities 206

Wholesale 241

Retail Trade 289

Finance, Ins., & Real Estate 335

Services 971

Government 18

Jobs Created by Sector from Federal Historic Preservation Investment (128,505 jobs, FY 2018)

Agriculture 333

Agri. Serv., Forestry, & Fish 603

Mining 1,150

Construction 46,503

Manufacturing 28,828

Transport. & Public Utilities 4,866

Wholesale 4,203

Retail Trade 15,017

Finance, Ins., & Real Estate 5,211

Services 21,335

Government 429

10 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY
Exhibit 2.2 National Economic and Tax Impacts of Federal HTC-related Activity

FY 1978 through FY 2018 (HTC Investment: $162.0 billion)

Gross Domestic Product by Sector from Federal Historic Preservation Investment $176,231 million 

cumulative, FY 1978-2018 (millions of 2018 $)

Agriculture 549

Agri. Serv., Forestry, & Fish 1,002

Mining 2,776

Construction 51,859

Manufacturing 46,419

Transport. & Public Utilities 9,910

Wholesale 6,200

Retail Trade 12,600

Finance, Ins., & Real Estate 20,744

Services 23,357

Government 826

Income Created by Sector from Federal Historic Preservation Investment 

$129,649 million cumulative, FY 1978-2018 (millions of 2018 $)

Agriculture 237

Agri. Serv., Forestry, & Fish 617

Mining 1,578

Construction 42,602

Manufacturing 29,659

Transport. & Public Utilities 5,788

Wholesale 5,911

Retail Trade 7,980

Finance, Ins., & Real Estate 11,895

Services 22,847

Government 527

Jobs Created by Sector from Federal Historic Preservation Investment

2,676,538 jobs cumulative, FY 1978-2018

Agriculture 8,284

Agri. Serv., Forestry, & Fish 14,386

Mining 21,962

Construction 811,489

Manufacturing 560,519

Transport. & Public Utilities 103,682

Wholesale 92,407

Retail Trade 383,917

Finance, Ins., & Real Estate 182,651

Services 485,896

Government 11,321

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2018 11
FY 1978–2018 FY 2018

Investment/Tax Credit Component a Nominal $ d Real $ e Real $ f

Total Annual Average Total Annual Average Total

Approved proposed (for tax credit) 

rehabilitation (Part 2)

$117.9 $2.88 $193.5 $4.72 $7.5

Certified (for tax credit) 

rehabilitation (Part 3)

$86.3 $2.10 $145.8 $3.56 $6.9

Total rehabilitation cost b $95.9 $2.34 $162.0 $3.95 $7.7

Federal tax credit c $17.7 $0.43 $30.8 $0.75 $1.4

Dollar amounts are expressed in billions

Economic Impacts 

(See Summary Exhibits 2 through 4 for details.)

FY 1978–2018 FY 2018

Total Annual Average Total

Jobs (in thousands) 2,677 65 129

Income $129.6 $3.16 $5.4

Gross Domestic Product $176.2 $4.30 $7.4

Output $354.0 $8.63 $14.4

Taxes-All Government $50.5 $1.23 $2.0

Taxes-Federal Government $35.9 $0.88 $1.3

Taxes-State Government $7.2 $0.18 $0.3

Taxes-Local Government $7.4 $0.18 $0.4

Exhibit 3 Summary of Federal Historic Tax Credit Statistics 

Dollar amounts are expressed in billions

SOURCES: Department of the Interior, National Park Service, Technical Preservation Services; National Council of State Historic Preservation Officers 

and calculations by Rutgers University.

Technical Background: The HTC has a multi-step application process encompassing “Part 1” (evaluation of the historic significance of 

the property), “Part 2” (description of the rehabilitation work), and “Part 3” (request of certification of completed work). With respect 

to the HTC’s dollar magnitude, the most complete data is for the approved proposed (for tax credit) rehabilitation investment (“Part 2”). 

We do not have as good data on the year-by-year certified (for tax credit) rehabilitation (“Part 3) volume over the full FY 1978–2018 

period. (Only a portion of the “Part 2” rehabilitation is ultimately certified as “Part 3.”) Further, we do not have specific data on the total 

rehabilitation investment associated with the HTC. By way of background, both “Part 2” and “Part 3” rehabilitation statistics include 

only what are termed “eligible” or “qualified” items (or Qualified Rehabilitation Expenditures—QRE) for the tax credit as opposed to 

what are called “ineligible” or “non-qualified” costs. Examples of “eligible”/”qualified” items include outlays for renovation (walls, floors, 

and ceilings, etc.) construction-period interest and taxes, and architect fees; examples of “ineligible”/”non-qualified” costs include 

landscaping, financing and leasing fees, and various other outlays (e.g. , for fencing, paving, sidewalks and parking lots). While the 

“ineligible”/”non-qualified” expenses do not count for tax credit purposes, they are practically a component of the total rehabilitation 

investment borne by the HTC-oriented developer and in fact, the total rehabilitation investment (including “ineligible”/”non-qualified” 

costs) help pump-prime the economy. Based on the best published data and through additional case studies conducted specifically for 

the purposes of the current investigation, Rutgers University estimates some of the “missing information” noted above regarding the 

cumulative HTC investment over FY 1978–2018.

a

 Data estimated from best available information.

b Equals all rehabilitation outlays—both “eligible”/”qualified” expenses and “ineligible”/”non-qualified” costs. The total rehabilitation 

cost is estimated by dividing the “Part 3” investment divided by .9. Case study investigation suggests that the “Part 3” amount is closer 

to 85 percent of the total rehabilitation cost, however we elected to apply the .9 factor to be conservative, that is to derive a lower 

rather than a higher estimate of the total rehabilitation expense.

c

 Assumes a 25 percent HTC in FY 1978–FY 1986 and a 20 percent HTC in FY 1987–FY 2018. These percents are applied to the certified 

rehabilitation (“Part 3”).

d In indicated year dollars—not adjusted for inflation.

e

 In inflation-adjusted 2018 dollars.

f

 Nominal and real dollars are the same for 2018.

12 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY
fiscal

year

2018

select

projects

Miller Theatre, Augusta, Georgia, Exterior. 

Photo: Jonathan Hillyer

Miller Theatre, Augusta, Georgia, Interior. 

Photo: Jonathan Hillyer

Seamen’s Bethel and 

Mariners’ Home, New 

Bedford, Massachusetts. 

Photo: Cara Pearson

Jack Tar Motor Lodge, 

Durham, North Carolina.

Photo: Andrew Cebulka 

L. N. Gross Company, Kent, Ohio.

Photo: Diana Wellman
History and Context

The Cheney High School is a three-story, brick-and-terra-cotta building designed by Spokane architect 

George Rasque in the Collegiate Gothic Style. The 1931 building is listed in the National Register of 

Historic Places as a contributing structure to the Central Cheney Historic District. The building remained 

a high school until 1967 when a new senior high school was built. It then served as the city’s junior high 

school for eight years, after which it was used for the school district’s administrative offices until 2013. 

Scope of Rehabilitation 

The Cheney School District sought to sell the old high school in 2013, but it was unable to secure a 

buyer for nearly three years. In 2016, Eastmark Capital Group, led by Sean Barnes, in partnership with 

Scott Shapiro of Eagle Rock Ventures, purchased the property for rehabilitation and conversion to 

student housing through their School House Lofts, LLC, partnership. By taking a preservation approach, 

the development team, led by Barnes, reversed conventional thinking by turning the historic gymnasium 

and the auditorium, which many developers might consider unusable spaces, into assets for the project. 

By retaining one half of the two-story, character-defining volume of these spaces as open communal 

areas, they were able to insert loft-style student apartments in the remaining half of these spaces. 

Located at the end of the Eastern Washington University campus, the 56,000-square-foot structure was 

a perfect candidate for its new purpose, but it posed significant architectural and financial challenges 

for a rehabilitation that needed to conform to the Secretary of Interior’s Standards for Rehabilitation. 

Working closely with the Washington State Department of Archaeology and Historic Preservation (the 

State Historic Preservation Office), Barnes was able to build unconventional, but highly functional dormlike apartments with the added amenities of the two large, high-ceilinged common spaces utilizing the 

historic gymnasium and auditorium. One of these spaces was adapted for use as a study lounge and 

game room and the other provides kitchen and laundry facilities for the students. 

In addition to Federal Historic Tax Credits, the project took advantage of Washington State’s Special 

Valuation for Historic Properties Program administered by the City of Cheney. The primary benefit of 

the program is that during the ten-year special valuation period, taxes exclude substantial improvements 

and increases to a property’s assessed value, thereby reducing the tax burden on the developer and 

providing an incentive for rehabilitation.

Cheney High School

CASE STUDY #1

Cheney, Washington

PROJECT PROFILE

Historic Name: Cheney High School

Current Name: School House Lofts

Year Built: 1931

Original Use: Public High School

Rehabilitation Completed: 2017

New Use: Student Housing

Total Project Cost: $8,000,000

Federal Historic Tax Credits (20%): 

$1,372,000

Washington State Special 

Valuation for Historic 

Properties Program

Photos: Sean M. Barnes

14 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY
PROJECT BUDGET

Sources of Funds Amount 

Bank Loan $5,250,000

Developer/Partnership Equity $2,750,000

 (Federal Historic Tax Credit of $1,372,000)

 (Washington State Special Valuation for Historic 

Properties Program)

Total $8,000,000

Uses of Funds Amount 

Acquisition Costs $750,000

Construction Costs $6,340,000

Soft Costs $630,000

Furniture Fixtures & Equipment $280,000

Total $8,000,000

With the goal of creating an exceptional living experience for residents, the 

developer retained the high school feel by keeping as much as possible of the 

original interior intact, with the objective of creating unique living spaces that 

also emphasized the building’s historic features. For example, to maximize 

floor area, loft sleeping areas were constructed with study nooks on top of 

closets and bathrooms to capitalize on the 12-foot-high ceilings; mahogany 

wainscoting, trim, and chalk boards were retained or repurposed; and 

salvaged gymnasium flooring was repurposed elsewhere in the building. The 

original eight-foot-tall, steel-sash windows were restored, and the structure’s 

wide hallways, lockers, and terrazzo floors were also retained. Repurposing 

the former high school for loft-style student apartments resulted in 36 

residential units, with 118 beds that include studio, two-, three- and fourbedroom floorplans. 

Role of the Historic Tax Credit

Due to the high cost and complexity of retrofitting the high school into 

student housing, the project would not have been undertaken; and the 

historic features of the building, and especially spaces like the gymnasium 

and auditorium, would not have been preserved without the availability of 

the Federal Historic Tax Credit. 

Economic Impact on Cheney

School House Lofts’ rehabilitation of the former Cheney High School now 

provides contemporary and fun living spaces within a cherished historic 

building and a community icon. It not only provides much-needed student 

housing at Eastern Washington University, but also reduces automobile use 

and alleviates parking on-campus, given its close proximity. The project also 

breathed new life into the vacated high school and supports continuity in the 

neighborhood by blending a large historic building into a residential section 

of Cheney.

Due to the high cost and complexity of 

retrofitting the high school into student 

housing, the project would not have been 

undertaken... without the availability 

of the Federal Historic Tax Credit.

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2018 15
History and Downtown Context

The building was constructed in 1902 by Henry Loewer and is stylistically much 

like the larger, more ornate, and better-known Crowley Grand Opera House 

built across the street in the same year. The building was first occupied by the 

Thomson-Lyons Implement Company, Ltd., which sold such items as buggies, 

plows, harnesses, and threshers to local farmers. (Crowley is an agricultural 

community located in the southwestern part of the state and is known as the 

“Rice Capital of America.”) The building housed numerous other businesses, 

including hardware and furniture stores over the years, and a jewelry store 

established in the early 1950s that is still in operation today.

Lazar John Properties purchased the historic building in 2002 and began the 

rehabilitation of the property in 2014 to renovate the first-floor retail and turn the 

second floor into housing. The second floor, which was unfinished, as it had been 

used primarily for storage for the ground-floor businesses, was converted from 

warehouse space to a rental apartment unit.

Scope of Rehabilitation

The building was originally constructed with 18-inch-thick exterior brick walls, and 

the interior was supported by wood columns and beams on the first and second 

floors. As part of the rehabilitation, the exterior brick walls were stripped of 

20-year-old paint and repointed where necessary. The original historic windows 

were repaired and repainted. The beams and columns were repaired, cleaned, and 

preserved, along with original plaster finishes and exposed brick walls where they 

remained in the building. New electrical and plumbing was installed as required by 

state and local codes. New walls were created on the second floor to create three 

bedrooms, but two-thirds of the apartment space were left unobstructed, with an 

open floor plan and exposed columns, beams, wood floors, plaster, and brick that 

characterized the former warehouse space.

Thomson-Lyons Implement Company Building 

CASE STUDY #2

PROJECT PROFILE

Historic Name: Thomson-Lyons Implement 

Company Building

Year Built: 1902

Rehabilitation Completed: 2017 

Original Use: Farming/Agriculture Equipment Store

New Use: Mixed-Use – Retail and Housing

Total Project Cost: $1,572,405

Federal Historic Tax Credits (20%): $266,466

State Historic Tax Credits (25%): $333,082

Photos: Kara Bergeron

“When you take a blighted building 

that is historic and bring it 

back to life, it is a wonderful 

opportunity to save the past for 

future generations. Without the 

tax credits we would not have 

embarked on this rehabilitation.” 

— Developer LJ Gielen

16 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY
PROJECT BUDGET

Sources of Funds Amount

Total Developer Equity $1,572,405

 (Federal Historic Tax Credit of $266,466)

 (State Historic Tax Credit of $333,082)

Total $1,572,405

Uses of Funds Amount

Land and Building Acquisition $150,000

Hard Costs/Construction $1,354,765

Soft Costs/Development Fees $67,640

Total $1,572,405

Crowley, Louisiana 

Role of the Historic Tax Credit

Developer LJ Gielen remarked that “This project would have been cost prohibitive 

had it not been for the availability of the Federal and state tax credits. Restoring 

historic buildings is usually more expensive than building from the ground up. 

However, when you take a blighted building that is historic and bring it back to life, 

it is a wonderful opportunity to save the past for future generations. Without the 

tax credits we would not have embarked on this rehabilitation.”

Economic Impact on Downtown Crowley 

First sparked by the restoration of Crowley’s Grand Opera House in 2008, the 

rehabilitation of historic buildings is propelling revitalization and economic 

development in the commercial downtown area of the Crowley Historic District. 

Rehabilitating the Thomson-Lyons Implement Company Building is a vital step 

in catalyzing more downtown development in Crowley, which is the parish seat 

of Acadia Parish. The value of this historic building has significantly increased as 

a result of its rehabilitation, and the City has invested in public infrastructure, as 

well as main street events and other amenities, to enhance the appeal of the 

downtown. These efforts are making a difference by informing building owners 

of revitalization incentives like historic tax credits. The City and local chamber of 

commerce are focused on increasing foot traffic and reinvigorating downtown 

as an exciting destination and community gathering place. Along with other 

buildings owned by Lazar John Properties, which received façade grants from the 

State of Louisiana, two other developers have begun renovating buildings close 

by. Due to the growing downtown appeal, new businesses have started locating 

in downtown Crowley, and residents are looking for places to remodel in order to 

live downtown.

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2018 17
History and Downtown Context

The Germania has been a Milwaukee landmark since it was built in 1896. German bookstore owner George Brumder constructed 

the Germania as the headquarters for his growing newspaper empire, which printed multiple papers in both English and German 

to meet the needs of Milwaukee’s large German population for books, newspapers, and magazines in their own language. The 

steel-framed, eight-story, brick-and-terra-cotta, Beaux Arts style-building was designed by architects Eugene Liebert and Paul 

Schnetzky. At the time, it was the largest building in Milwaukee and has endured as a regional landmark with its copper pickelhaube 

(the Prussian spiked army helmet) domes and terra-cotta cherubs adorning the pediments above both the entrance and rooftop. As 

WWI approached, with anti-German sentiment on the rise, the building’s name was changed to the “Brumder” Building and the 

10-foot bronze statue of “Germania” representing the German tribes that resisted Roman rule, along with the sculpted eagles, were 

removed. Eventually, Milwaukee’s first underground parking garage replaced the printing presses in the basement and the name was 

changed back to the Germania Building in 1981. The building was listed in the National Register of Historic Places in 1983.

Scope of Rehabilitation

In 2016, Cardinal Capital Management and their development partners began rehabilitation of the Germania to convert the building into 

mixed-income housing that would appeal to residents who work downtown. Unemployed and underemployed city residents were hired 

for the project and trained in construction to work on the building. The rehabilitation to adapt the building for the new uses sought to 

retain its historic character in order to receive the tax credits, while bringing the building into compliance with code requirements and 

other residential needs. On the exterior, terra cotta and limestone features that were damaged were repaired and brick was repointed 

where necessary. The historic wood windows were retained and repaired. Significant character-defining features were also retained on 

the interior, including the first-floor lobby with its marble floors, wainscoting, decorative pilasters, and staircase. The marble wainscoting, 

wood chair rails, and wood door casings that still remained in the corridors were refurbished, as were the historic wood window and door 

surrounds and wood floors in the apartments. 

The HVAC system was designed with an innovative and cost-effective means of supplying the heat and air conditioning to the 90 

units. City-generated steam, through a new heat exchanger, provides the heat and hot water for the building via ten stainless-steel, 

indirect water heaters, and four rooftop chillers provide the air conditioning. The heat, hot water and air conditioning are all included 

in the tenants’ rent. The 90 apartments are a mix of 44 affordable units and 46 market-rate units. Additionally, the Germania includes 

approximately 7,000 square feet of street-level commercial space. 

PROJECT PROFILE

Historic Name: Germania Building

Year Built: 1896

Original Use: Printing Press, Newspaper Business and Office Building 

Rehabilitation Completed: 2017

New Use: Mixed Use – Retail and Housing

Total Project Cost: $22,177,819

Federal Historic Tax Credit Equity (20%): $3,276,892

State Historic Tax Credit Equity (20%): $2,619,871

Low Income Housing Tax Credit (LIHTC) Equity: $1,909,856

WI Housing and Economic Development Authority (WHEDA) Loans 

and City Incentives: $13,113,000

Germania Building

CASE STUDY #3

Milwaukee, Wisconsin 

Photos: Courtesy of Cardinal Capital Management

18 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY
PROJECT BUDGET

Sources of Funds Amount

1st Mortgage: WHEDA Bond Loan $10,213,000

2nd Mortgage: WHEDA,

 City of Milwaukee TIF Loan $1,500,000 

3rd Mortgage: WHEDA Soft Loan $1,400,000

LIHTC Investor Equity $1,909,856

Federal Historic Tax Credit Equity $3,276,892

State Historic Tax Credit Equity $2,619,871

Project Cash & Accrued Interest $51,418

Deferred Developer Fee $1,206,782 

Total $22,177,819 

Uses of Funds Amount

Acquisition Costs $3,923,947 

Rehabilitation/Construction Costs $13,646,744

Architectural & Engineering $424,352

Interim/Construction Costs $1,067,688

Financing Fees & Expenses $390,834

Miscellaneous Costs $324,480

Syndication Costs $83,659

Developer Fee $1,792,350

Project Reserves $523,765

Total $22,177,819

Role of the Historic Tax Credit

All sources of financing were critical to this project. Without the Historic 

Tax Credit, the rehabilitation of the Germania Building would not have 

been possible. The tax credit equity generated by both the state and 

Federal historic tax credits filled a critical financing gap for the project. 

Economic Impact, Downtown Milwaukee 

The rehabilitation of the Germania is a major milestone for development 

in the City of Milwaukee and the Central Business District (CBD). 

The need for additional affordable housing in the CBD and greater 

downtown area is acute, and the Germania demonstrates that highquality rehabilitations of historic buildings can help fill this need. Well 

executed, this dramatic revitalization of a long-neglected Class “C” 

office building is an inspiration to other developers, as it demonstrates 

that affordable housing is not only viable in Milwaukee’s CBD, but 

can play a vital role in fulfilling the workforce needs of the expanding 

downtown marketplace. By involving unemployed and underemployed 

city residents to work on the building, the project also was important 

because it created jobs and trained people to start new careers.

Without the Historic Tax Credit, the rehabilitation 

of the Germania Building would not have been 

possible. The tax credit equity generated by both 

the state and Federal historic tax credits filled a 

critical financing gap for the project. 

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2018 19
PROJECT PROFILE

Historic Name: 17 Alfred Street

Year Built: 1860

Year Rehabilitation Completed: 2017

Original Use: Retail/Commercial, Office, and Housing 

New Use: Mixed use – Retail/Commercial and Housing 

Total Project Cost: $1,012,000

Federal Historic Tax Credits (20%): $160,000

State Historic Tax Credits (25%): $200,000

17 Alfred Street

CASE STUDY #4

Biddeford, Maine 

History and Downtown Context 

The City of Biddeford, Maine, like many other New England towns, realized its economic beginnings alongside a powerful 

river—the Saco River, where textile mills began to appear in the early 19th century. When the region’s dominance over the 

national textile industry began to erode more than a century later, growth and opportunity for many towns in the Northeast 

slowed and downtowns began to languish. Biddeford, too, suffered for decades until an improving regional economy, several 

mill redevelopment projects, and historic preservation incentives helped catalyze the city’s resurgence.

In the heart of Biddeford’s downtown, the three-story, wood-and-masonry building at 17 Alfred Street is an excellent 

representation of the mixed-use development that came to typify Maine’s rapidly expanding industrial cities in the late 19th 

century. This building, and many others like it in downtown Biddeford, served both the social and commercial needs of the 

thousands of textile workers, largely immigrants, who labored in the nearby mills. The top floor of 17 Alfred Street was constructed as one undivided room with an ornate pressed-metal ceiling. It was here that mill workers belonging to one of the 

city’s eight fraternal clubs, The Improved Order of Red Men, made their headquarters. 

The first floor of the building was originally divided into three commercial shops with large double-hung windows and 

recessed entrances. These spaces were occupied at different times by a fruit seller, a casket maker, a haberdasher, and a café. 

The middle floor served as offices and apartments. A 1980s-era remodeling largely blocked the first floor from the street 

when the commercial storefronts were reconfigured, eliminating the recessed entrances, and with smaller windows. Prior to 

the building’s rehabilitation, signs of deferred maintenance were plentiful, including evidence of long-term moisture damage 

in the basement crawl space and severely cracked roof trusses. 

Scope of Rehabilitation

The rehabilitation began with first replacing the roof, which was severely damaged due to excessive snow load, and required 

the removal and replacement of the entire roof deck and supporting trusses. The three storefronts with their recessed entries 

and large operable windows were rebuilt to match their original design. The first floor and underlying framing had to be 

removed and replaced, decayed floor joists throughout the building were repaired by sistering, and rotten portions of framing 

on the back wall were reframed. Twelve incompatible, vinyl replacement windows on the upper façade were replaced with 

historically-appropriate wood windows. More than a year was spent repairing the third-floor pressed metal ceiling and other 

metal ceilings that were revealed in the course of the rehabilitation. The building now consists of six market-rate apartments 

on the upper stories and two commercial businesses on the first floor.

Photos: Trent Bell

20 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY
“This project took a building that looked 

dangerous with a bad paint job and 

a service business that didn’t attract 

much foot traffic and transformed it 

into a beautiful anchor building in 

our downtown with two successful

retail/restaurant businesses.”

— Heart of Biddeford Executive Director 

Delilah Poupore

Role of the Historic Tax Credit

According to owner and developer Seth Harkness, the project would not 

have been feasible without the historic tax credits, which offset federal and 

state tax liability and created a stronger annual cash flow for the property. 

The credits allowed for a more extensive rehabilitation and the use of highquality building materials, which has in turn brought new life to a downtown 

building long associated with Biddeford’s historic economic boom.

Economic Impact on 

Downtown Biddeford

In a city that has long suffered from a significant commercial vacancy 

rate, 17 Alfred Street has been fully occupied since completion of both the 

residential and commercial spaces. Heart of Biddeford Executive Director 

Delilah Poupore notes that “This project took a building that looked 

dangerous with a bad paint job and a service business that didn’t attract 

much foot traffic and transformed it into a beautiful anchor building in 

our downtown with two successful retail/restaurant businesses.” The 

two businesses, Leader Bags, which designs and sells chic diaper bags, 

backpacks and accessories for parents; and Part & Parcel, a specialty market 

and café, have created attractive storefronts that draw shoppers and 

diners. Part & Parcel, which began primarily as a “provisions” shop with 

wine, cheese, and local farm goods, has already successfully expanded food 

offerings for its customers. The entire block is now filled with businesses 

that complement each other and are starting to bring more people into 

downtown Biddeford. The rehabilitation of 17 Alfred Street is helping 

fuel Biddeford’s resurgence and is encouraging other downtown building 

owners to explore historic rehabilitation solutions.

PROJECT BUDGET

Sources of Funds Amount

Construction Loan $330,000

 (non-profit community development bank) 

Developer Equity $662,300

 (Federal Historic Tax Credit of $160,000)

 (State Historic Tax Credit of $200,000)

City of Biddeford Façade Grant $15,000

Efficiency Maine Energy Rebates $4,700

Total $1,012,000 

Uses of Funds Amount

Acquisition $167,000

Construction Costs $780,000

Soft Costs $65,000

Total $1,012,000

Annual Report on the Economic Impact of the Federal Historic Tax Credit for Fiscal Year 2018 21
Edward J. Bloustein School of Planning and Public Policy

Rutgers, The State University of New Jersey

Civic Square Building, 33 Livingston Avenue

New Brunswick, NJ 08901

848-932-5475

http://bloustein.rutgers.edu/

ejb@policy.rutgers.edu

Technical Preservation Services

National Park Service

U. S. Department of the Interior

Washington, DC 20240

https://www.nps.gov/tps/

September 2019

Cover Image: 17 Alfred Street, Biddeford, Maine. 

Photo: Trent Bell

2 NATIONAL PARK SERVICE | RUTGERS UNIVERSITY