Second Annual Report on the Economic Impact

of the Federal Historic Tax Credit

The Historic Tax Credit Coalition

May 2011
Research Authored by

Center for Urban Policy Research

Edward J. Bloustein School of Planning and Public Policy

Rutgers, The State University of New Jersey

New Brunswick, New Jersey 08901

David Listokin, Co-Principal Investigator

Michael L. Lahr, Co-Principal Investigator

Charles Heydt, Research Associate

David Stanek, Research Associate

In Cooperation with

National Trust Community Investment Corporation

Washington, DC 20036

John Leith-Tetrault, President

Anna Klosterman, Marketing and Communications Manager

Research Conducted for

Historic Tax Credit Coalition

Liberty Place, 325 7th Street NW, Suite 400

Washington, DC 20004

The Historic Tax Credit Coalition, The National Trust Community Investment 

Corporation, and Rutgers University wish to acknowledge the research assistance 

of the Technical Preservation Services group of the National Park Service and the 

National Conference of State Historic Preservation Officers, without which this 

report would not have been possible.
executive synthesis

This study examines the historical and current application of the federal historic tax 

credit (HTC) in the United States; presents quantitative and qualitative information 

regarding the economic and other benefits of the federal HTC (e.g. providing affordable housing and spurring downtown revitalization); and explores ways in which the 

current federal HTC—a strong program in its own right—can be more flexibly applied 

in the future so as to realize yet greater production and ensuing benefits.

The research for this report was conducted by the Rutgers Center for Urban 

Policy Research under the guidance of Dr. David Listokin, Michael L. Lahr, David 

Stanek, Charles Heydt, and with the assistance of John Leith-Tetrault and Anna 

Klosterman of the National Trust Community Investment Corporation (NTCIC), 

the historic tax credit subsidiary of the National Trust for Historic Preservation. 

This study was commissioned by the Historic Tax Credit Coalition (HTCC), a 

public policy advocacy organization whose members represent historic tax credit 

industry participants including investors, syndicators, developers, preservation 

consultants, tax attorneys and accountants.

INTRODUCTION TO FEDERAL AND STATE HISTORIC TAX CREDITS

AND ALLIED SUBSIDIES TO FOSTER HISTORIC REHABILITATION

History of Federal and State Tax 

Credit Incentives

The history of federal tax incentives for 

historic rehabilitation began with the 1976 

Tax Act which included a 60-month accelerated depreciation of certain costs of 

rehabilitating certified historic properties 

Second Annual Report on the Economic 

Impact of the Federal Historic Tax Credit

The Historic Tax Credit Coalition

Cleveland Institute of Art (CIA)

McCullough Center, Cleveland, Ohio: The 

CIA used $5,251,280 in federal Historic Tax Credit 

equity, along with financing generated by the 

Ohio State Historic and New Markets Tax Credits 

to rehabilitate this former Ford Model-T assembly 

plant into classrooms, artist studios, faculty and 

administrative space. 
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and a tax deduction for preservation easements. However the most significant step forward came with the Economic Recovery Tax Act (ERTA) of 1981 which included a 25% 

tax credit for income producing certified historic rehab, a 15% credit for the rehabilitation of non-historic buildings at least 30 years old, and a 20% credit for renovation of 

existing commercial properties at least 40 years old. ERTA quickly became a powerful 

driver of historic and non-historic rehabilitation activity as part of a broader economic 

stimulus package of the new Reagan Administration. Total certified National Park Service (NPS) Part 2 approvals1

 reached a peak of 6,214 projects approved in 1984. Federal 

HTC activity from the 1970s to date is shown in Summary Exhibits 6 through 9. 

The last major structural changes to the IRC Section 47 rehab credits were made 24 

years ago in 1986 as part of the 1986 Tax Reform Act (TRA) when the 25% certified 

historic rehab credit was reduced to 20% and the non-historic building rehab credit 

was collapsed into one 10% credit. Just as significant was the Act’s new “passive loss” 

rules which placed limitations on individual investor use of the HTC to offset investment income. The HTC market, which had depended on a combination of individual 

developer/owner investments and large individual-investor syndication structures, 

plummeted as a result of this change. The decline continued through 1993 when only 

538 projects received NPS Part 2 approval (Summary Exhibit 6). In the wake of the 

1986 passive loss rule changes, thousands of individual HTC investors were left with 

credits that they could not redeem. 

The HTC market began to recover during the second half of the 1990s when corporations that had become regular investors in the Low-Income Housing Tax Credit 

(LIHTC) began looking for alternative investments when yields on the LIHTC began to 

fall. These companies had become familiar with the HTC through the twinning of the 

HTC with LIHTC credits when historic properties were adaptively reused for affordable housing. 

From 2000 to 2010, there was an uptick in the number of HTC projects as measured 

by Part 2 approvals compared to the previous decade (though the 2000 to 2010 

project approval volume was far below that achieved in the 1990s). From 2000 to 

2010, there was also a dramatic increase in the dollar HTC investment as measured 

by Part 2 investment compared to the 1990s, though this increase was less potent 

(especially relative to the 1980s) when adjusted for inflation (Summary Exhibit 7). 

Most recently, we observe the dampening impact of a challenging real estate climate 

on HTC activity as there has been a drop off in the number of Part 2 projects and Part 

2-related dollars invested over the last two years. 

We observe similar trends when examining the total rehabilitation project cost borne 

by HTC developers and not just the dollar amount certified for tax credit purposes.2

These figures are shown in Summary Exhibit 8. The peaks and valleys are readily 

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 rehabilitation work), and “Part 3” (request of certification of completed work). 

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. 

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

of the total rehabilitation investment or cost borne by the HTC-oriented developer and, in fact, the total rehabilitation 

investment (including “ineligible”/ “non-qualified” costs) help pump-prime the economy. 

2 See footnote 1 for explanation.
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evident. The HTC total rehabilitation project cost rose 

dramatically after the 1981 ERTA (to a high of $4.7 

billion in 1985), fell precipitously after the 1986 Tax Reform Act (to a low of $1.1 billion in 1994), and regained 

vigor with some unevenness over the past decade ($3 

to $5 billion annually), such as a recent drop in HTC 

rehabilitation project cost as the nation’s real estate 

market faced difficult times. (All figures just cited are 

in inflation-adjusted 2010 dollars.)

In addition to leveraging other federal subsidies for 

housing and business development in low-income 

communities, the HTC has provided a model for the 

enactment of state historic tax credits (SHTC) in 

33 states. This number of tandem SHTCs compares 

favorably to the 16 states with state LIHTCs and eight 

states with New Markets Tax Credit (NMTC) programs. 

NPS statistical reports document that the states with 

strongest SHTC statutes regularly lead the nation in 

the use of the federal HTC. 

The Need for Historic Tax Credit

Modernization

Despite the documented success of the HTC program, 

on a dollar volume basis, it remains much smaller than 

the LIHTC and NMTC credit programs. Even as an uncapped credit, the NPS certified 

only $688 million in HTCs in FY 2010.3 This compares to the pre-recession $9 billion 

credit expenditure level for the LIHTC and the recent $3.5 billion Round 8 allocation 

of the NMTC program. 

There are a variety of reasons for the lower utilization rate of the federal HTC. Suggestions for removing some of these impediments were contained in the Community 

Restoration and Revitalization Act, a bill introduced in 2009 (111th Congress). The 

broad themes of HR 3715 and S 1743 included provisions that would increase the 

20% credit to 30% on “Main Street-scale” rehabilitations ($5 million in qualified rehab 

expenditures and under). Another provision provided a deeper credit (22%) if the 

rehabilitation project achieved at least a 30% energy efficiency improvement over a 

regionally adjusted baseline for similar buildings. 

The bill provided for the indexing of the eligibility dates for properties that utilize the 

10% rehabilitation credit, so that buildings 50 years or older would qualify. HR 3715 

and S 1743 promoted nonprofit organization sponsorship of HTC transactions by rolling back three of the four “disqualified lease rules” that limit leasing to nonprofit or 

Atlas Life Building, Tulsa, Oklahoma: Rehabilitation of this 

former downtown insurance company office building into a Marriott 

Hotel used $2,825,000 in federal Historic Tax Credit equity.

3 This is the amount of the HTC derived by applying the 20 percent credit to the Part 3 certified investment.
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government tenants in HTC properties to 50% of leasable space. Finally the bill contained several provisions that would increase the value of state HTCs when used in 

tandem with the federal HTC. The Historic Tax Credit Coalition intends to reintroduce 

this legislation in the 112th Congress sometime in the spring of 2011.

ECONOMIC IMPACTS OF THE FEDERAL HISTORIC TAX CREDIT

Research Assumptions and Methodology

From fiscal year (FY) 1978 through FY 2010, NPS “Part 2” pre-rehabilitation approvals indicate about $106.7 billion (in inflation-adjusted 2010 dollars) of rehabilitation 

was invested in about 47,000 federal HTC-associated projects. In FY 2009 and 2010 

combined, the Part 2 volume in such projects was about $8.1 billion. However, the 

amount of Qualified Rehab Expenditures (QREs) for the tax credit reflected in “Part 

3” certifications, made after completion, is significantly less: about $81.4 billion over 

FY 1978-2010 and $7.9 billion in FY 2009 and 2010 combined (all inflation-adjusted 

2010 dollars). (All the above figures are best estimates.) This report therefore uses 

the lower Part 3 QREs inflated by 10% to account for non-QRE expenditures to estimate the economic impacts of the federal HTC.4 Aggregate investment using this 

more conservative approach is $90.4 billion over the 33-year life of the federal HTC 

and $8.8 billion in FY 2009 and 2010 combined. More detailed program activity data 

are found in Summary Exhibit 1.

The federal cost of the HTC is equal to the credit percent (25 percent from 1978 

through 1986 and 20 percent from 1987 onward) applied to the “Part 3” investment. 

That calculation yields the following estimates: the federal tax credit over the FY 

1978-2010 period cost $17.5 billion to the US Treasury (in inflation-adjusted 2010 dollars) while the credit cost in FY 2000 and 2010 was about $1.6 billion. Estimated total 

federal tax receipts generated by the HTC during these two periods were $22.3 billion 

and $1.5 billion respectively, indicating that the federal historic tax credit is a revenue 

raiser for the US Treasury or is at least about revenue neutral. (See Summary Exhibit 1 

for details.)

This study quantifies the construction-stage total economic effects (i.e., direct as well 

as multiplier or secondary economic consequences) of the above cited investments. 

These effects are studied via an input-output model developed by Rutgers University 

for the National Park Service called the Preservation Economic Impact Model (PEIM). 

In the current analysis, the PEIM is applied to both cumulative (FY 1978 through 

2010) federal tax credit-aided historic rehabilitation investment in the United States 

(about $90.4 billion in 2010 inflation-adjusted dollars) and to the two-year FY 2009 

and 2010 combined tax credit-aided rehabilitation investment (about $8.8 billion) 

throughout the nation. In applying the cumulative FY 1978-2010 analysis, we consider 

the effects of the $90.4 billion rehabilitation investment as if effected in one year 

(2010),5 rather than retroactively backdating and applying the economic model for 

each of the 33 years encompassing the FY 1978-2010 study period. 

4 See discussion at footnote 1.

5 The two-year 2009 and 2010 investment is similarly treated.
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The results of the PEIM model include many fields of data. The fields most relevant to 

this study are the total impacts of the following:

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 

proprietors’ income.

Wealth: Value-added—the sub-national equivalent of gross domestic 

product (GDP). At the state level, this is called gross state product (GSP).

Output: The value of shipments, which is reported in the Economic Census.

Taxes: Tax revenues generated by the activity which include taxes to the 

federal, state and local governments.

HTC National Economic Impacts

The national total (direct and multiplier) economic impacts from the HTC-associated 

rehabilitation investment for the program to date (FY 1978-2010) and for the most 

current two-year investment (FY 2009 and 2010) are shown below and are also contained in Summary Exhibit 1. Selected critical findings are further plotted in Summary 

Exhibits 2 through 5.

The benefits that accrue from the investment in the federal tax credit-aided historic 

rehabilitation projects are extensive and almost all sectors of the nation’s economy see 

their payrolls and production increased. Illustrative are the cumulative FY 1978-2010 

federal HTC effects. Just under 30 percent of the national-based jobs from the cumulative $90.4 billion tax credit-aided rehabilitation investment (approximately 592,000 

of 2,021,000 jobs) and national gross domestic product ($29.2 billion of $103.8 billion GDP) accrue to the nation’s construction industry; this is as one would expect, 

Federal HTC-assisted Rehabilitation

$90.4 billion cumulative $8.8 billion for FY 2009

(FY 1978-2010) historic and 2010 historic

rehabilitation expenditures rehabilitation expenditures

results in: results in:

National Total (Direct and Multiplier Impacts)

Jobs (person-years; thousands) 2,020.8 145.1

Income ($ billion) 76.3 6.2

Output ($ billion) 210.2 16.6

GDP ($ billion) 103.8 8.4

Taxes ($ billion) 30.5 2.2

Federal ($ billion) 22.3 1.5

State ($ billion) 4.2 0.4

Local ($ billion) 4.1 0.4

Economic Impacts
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given the share of such projects that require the employment of building contractors. 

Other major economic sector beneficiaries are services (360,000 jobs, $13.7 billion 

in GDP) as well as manufacturing (411,000 jobs, $26.6 billion GDP) and the retail 

trade (298,000 jobs, $7.8 billion GDP) sectors. As a result of the interconnectedness 

of the national economy and because both direct and multiplier effects are considered, other sectors of the national economy not immediately associated with historic 

rehabilitation are affected as well, such as agriculture, mining and transportation and 

public utilities. (See Summary Exhibits 2 and 3.)

The recent (FY 2009 and 2010 combined) economic prowess of the federal HTC is 

also most impressive. For example, it generated about 145,000 jobs, including 52,000 

jobs in construction and 33,000 jobs in manufacturing; it was responsible for $8.4 billion in GDP, including $2.8 billion and $2.4 billion GDP increments in the construction 

and manufacturing sectors respectively; and the 2009 and 2010 HTC activity realized 

a $6.2 billion increment in income, with construction ($2.3 billion) and manufacturing ($1.5 billion) reaping major portions of that income gain. These benefits were 

especially welcome in 2009 and 2010 as the nation suffered from a severe economic 

downturn and various stimulus interventions were effected: HTC-inspired investment 

is stimulus on steroids. 

HTC State Level Impacts

The economic impact from the federal tax credit-aided historic rehabilitation stimulates the state-level as well as the national economy. For example, in FY 2009 and 

2010, Missouri had about $974 million in federal HTC-supported rehabilitation. The 

national impacts of that investment included about 16,700 jobs generating an additional $1.9 billion in output, $695 million in income, $920 million in GDP, and $219 

million in taxes. At the state of Missouri level, the FY 2009 and 2010 $974 million in 

historic rehabilitation spending translates to 12,400 jobs generating $1.2 billion in output, $523 million in labor income, $641 million in gross state product (GSP), and $199 

million in taxes. The in-state wealth (GSP minus business-paid federal taxes) resulting 

from rehabilitation expenditures amounts to $569 million, indicating a high 89 percent retention rate. Similar high state-level retention rates of the economic benefits 

from the HTC characterize other locations as well. (See Summary Exhibits 4 and 5 for 

greater detail.)

Comparison of the HTC to the Economic Impacts

of Non-Preservation Investments

How does tax credit-aided historic rehabilitation fare as an economic pump-primer 

vis-à-vis other non-preservation investments? The short answer is quite well. Numerous studies conducted by Rutgers University in states throughout the country have 

shown that a $1 million investment in historic rehabilitation realizes a markedly better economic effect in many places in the United States with respect to employment, 

income, GSP, and state-local taxes compared to a similar increment of investment (i.e. 

$1 million) in an array of residential and nonresidential new construction (including 
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building highways—a stimulus favorite) or a $1 million investment in an array of important business 

activities, such as manufacturing (e.g., machinery 

and automobile), and services (telecommunication). It is not a question of historic rehabilitation 

as opposed to other pursuits, but rather historic 

rehabilitation joining in a holistic fashion the many 

activities of the broader economy so as to realize the commendable strong economic “bang for the buck” offered by that historic rehabilitation.

HTC Impacts on Housing and Downtown Revitalization

Spatial analysis by Rutgers University6 of the locations within states that use federal HTCs show widespread utilization, that is, many areas benefit; yet there is an 

understandable clustering of more intense HTC activity in urban and rural centers. 

Bolstering these centers through HTC investment is especially important for combating the adverse effects of sprawl and furthering smart growth. In Missouri, for 

example, the highest concentration of federal HTC activity by dollar investment in 

2009 included such communities as St. Louis, Kansas City, Columbia, Springfield 

and St. Joseph. Other Missouri communities with federal HTC investment included 

Excelsior Springs, Maplewood, Hannibal and Lebanon as examples. Further spatial 

Healing Center, New Orleans, 

Louisiana: This community center in 

the city’s St. Claude corridor will be 

anchored by a co-op grocery store. The 

former furniture store was rehabilitated 

using $2,358,727 in federal GO Zone 

Historic Tax Credits as well as Louisiana 

State Historic and federal and state New 

Markets Tax Credits. 

6 This research was conducted by Luke Drake and David Listokin. 
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analysis by Rutgers University of the micro-level location of federal HTC activity 

shows that the hotspots of investment are typically in areas with the lowest household incomes and other measures of distress; thus this federal HTC is aiding locations in need. An example of this is the distribution of FY 2009 HTC investment in 

the St. Louis Metropolitan Statistical Area (MSA) that is shown in Summary Exhibit 

10. Clearly evident is the disproportionate concentration of federal HTC dollar activity in the MSA core and in the portions of the MSA with the lowest median household income. 

Case study analysis of federal HTC implementation further points to many additional quantitative and qualitative benefits of the federal tax credit, including providing 

affordable housing, fostering downtown economic development and encouraging 

adaptive reuse.

The historic preservation, affordable housing, economic development and other 

benefits of the federal HTC are augmented by combining the federal HTC with other 

tax credits. In an exemplary case of creative federalism, about 33 states have statelevel HTCs of their own; they typically “piggyback” the federal HTC. The federal 

(and state) HTCs have further been “twinned” with the federal Low-Income Housing 

Tax Credit (LIHTC) and the federal New Markets Tax Credits (NMTC). 

An NTCIC study of the first 4 Rounds of NMTC program has shown that about one 

in 10 transactions and approximately 20% of all Qualified Equity Investments involve the twinning of historic and New 

Markets Tax Credits. NPS statistics 

show that two-thirds of all approved 

HTC projects since 2002 have been 

located in NMTC-eligible low-income 

census tracts. No similar studies or 

statistics exist for the twinning of LIHTC and federal HTCs, but anecdotal 

evidence suggests that as much as 

15% of all LIHTC affordable housing 

projects are adaptive reuses of historic properties that also generate HTCs. 

Audobon Hotel, New Orleans, Lousiana: This 

strategic Canal Street property utilized $2,819,135 

in federal GO Zone (26%) Historic Tax Credit equity, 

in addition to financing generated by the Louisiana 

State Historic and New Markets Tax Credits. The 

new use will be a 168-room Indigo Hotel.
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These various tax credit combinations have produced powerful housing results 

(Summary Exhibit 9). For example, from the inception of federal historic preservation tax incentives until today (FY 1978-2010), 432,401 housing units have been 

completed. Of that total, 229,400 or 53 percent, were existing housing units that 

were rehabilitated, and 203,005 or 47 percent were “newly” created housing units 

(e.g., housing resulting from the adaptive reuse of once-commercial space). Of the 

432,401 total housing units completed under federal historic preservation tax incentive auspices since the late 1970s, 114,084, or 26 percent, were affordable to lowand/or moderate-income (LMI) families (This was often accomplished by combining 

the federal HTC with the LIHTC.) That averages to about 3,450 LMI units per year. 

In FY 2009 and 2010 combined, 12,224 LMI units were produced under the federal 

HTC. The federal HTC is largely invisible in the housing “radar”, yet it deserves much 

greater attention, given its total and LMI housing unit production. Further, the LMI 

share of HTC housing units is growing. From FY 2005 through FY 2010, on average, 

38 percent of all federal HTC housing has been at LMI levels. In FY 2009, the LMI 

share of all HTC units reached a high of 49 percent (Summary Exhibit 9).

Summary of Cumulative HTC Impacts 

In short, the federal HTC is a “good” investment for the nation, states, and local 

communities. We illustrate some facets of this by considering the cumulative (FY 

1978-2010) program to date. 

• An inflation-adjusted (2010 dollars) $17.5 billion federal historic tax credit cost 

to date has encouraged a five times greater amount of historic rehabilitation 

($90.4 billion). 

• This rehabilitation investment has generated about 2.0 million new jobs and billions of dollars of total (direct and secondary) economic gains. 

• The cumulative impacts to the national economy include: output ($210.2 billion), 

gross domestic product ($103.8 billion), income ($76.3 billion), and taxes ($30.5 

billion, including $22.3 billion in federal tax receipts).

• The leverage and multiplier benefits as noted above give support to the argument that the federal HTC is a strategic investment. Our results also show that 

the federal cost of the FY 1978-2010 HTC—a cumulative $17.5 billion in 2010 

inflation-adjusted dollars—is more than offset by the $22.3 billion in federal 

taxes realized to date.

In considering the federal HTC “cost-benefit,” it should further be realized that our quantification of HTC economic and tax consequences are understated for various reasons: 

For various technical reasons, our estimate of the total rehabilitation cost associated 

with the federal HTC (i.e., $90.4 billion in constant 2010 dollars over FY 1978-2010 

and $8.8 billion in FY 2009 and 2010 combined) is likely understated. In tandem 

then, the economic and tax effects flowing from the rehabilitation investment are 

understated as well. 
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Significant economic and tax benefits accrue from the federal HTC that have not been 

quantified by Rutgers University because they went beyond the scope of the current investigation. The latter focused solely on the economic effects from the federal 

HTC-associated construction—a one-time investment. In fact, there are recurring yearby-year economic returns from the federal HTC. These recurring benefits include the 

federal HTC’s investment enhancing tourism, specifically heritage and cultural travel 

(a multi-billion dollar industry); the historic tax credit providing adaptively-reused and 

other commercial space for businesses that annually have a payroll and tax payments; 

and the positive federal HTC investment impact on property values, which then yearly 

have tax, wealth, and other benefits. We have also not counted the well known (though 

difficult to measure) tendency of historic rehabilitation to boost investor and neighborhood confidence and induce a broader trend toward community-wide revitalization. 

In a related fashion, we are not capturing how the enhanced “quality of life” (QOL) realized by the federal HTC furthers the national and state economy and public tax generation (e.g., through such means as attracting the “creative class” and more generally 

from enhanced worker efficiency, reduced medical expenses, and the like). In short, the 

full economic and tax benefits from the federal HTC are yet greater than the already 

considerable economic and tax consequences documented in the current study. 
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SUMMARY EXHIBIT 1

Summary of Federal Historic Tax Credit Statistics

Sources: Department of the Interior, National Park Service, Technical Preservation Services; National Council of State 

Historic Preservation Offices; and calculations by Rutgers University.

I. Investment/Tax Credit Component FY 1978–2010 FY 2009

 and 2010

 Nominal$d Real$e Real$e

Total Annual Total Annual Total

Average Average

Approved proposed (for tax $65.4 $2.0 $106.7 $3.2 $8.1

credit) rehabilitation (“Part 2”)

Certified (for tax credit) $48.9 $1.5 $81.4 $2.5 $7.9

rehabilitationa (“Part 3”)

Total rehabilitation costb $54.3 $1.7 $90.4 $2.7 $8.8

Federal tax creditc $10.2 $0.3 $17.5 $0.5 $1.6

Dollar amounts above are expressed in billions

II. Economics Impacts FY 1978–2010 FY 2009 and 2010

Total Annual Average Total

Jobs (in thousands) 2,020.8 61.2 145.1

Income $76.3 $2.3 $6.2

Gross Domestic Product $103.8 $3.2 $8.4

Output $210.2 $6.4 $16.6

Taxes—All Government $30.5 $0.9 $2.2

Taxes—Federal Government $22.3 $0.7 $1.5

Taxes—State Government $4.2 $0.1 $0.4

Taxes—Local Government $4.1 $0.1 $0.4

Dollar amounts above are expressed in billions of real 2010e

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 1978-2008 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 estimates some of the “missing information” noted above regarding the 

cumulative HTC investment over FY 1978-2010.

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 2010. These percentages are applied to the certified rehabilitation (“Part 3”)

d In indicated year dollars—not adjusted for inflation

e In inflation-adjusted 2010 dollars
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Government 8,744

Services 359,557

Finance, Ins., & Real Estate 153,818

Retail Trade 297,977

Wholesale 67,910

Transport. & Public Utilities 79,216

Manufacturing 410,868

Construction 591,911

Mining 16,448

Agri. Serv., Forestry, & Fish 19,630

Agriculture 14,695

Jobs Created by Sector from Federal Historic Preservation Investment

(2,020,774 jobs cumulative, FY 1978-2010)

Income Created by Sector from Federal Historic Preservation Investment

($76,292 million cumulative, FY 1978-2010)

Government $325

Services $13,337

Finance, Ins., & Real Estate $7,879

Retail Trade $4,937

Wholesale $3,506

Transport. & Public Utilities $3,596

Manufacturing $17,309

Construction $23,909

Mining $962

Agri. Serv., Forestry, & Fish $377

Agriculture $155

Gross Domestic Product by Sector from Federal Historic Preservation Investment

($103,790 million cumulative, FY 1978-2010)

Government $509

Services $13,696

Finance, Ins., & Real Estate $13,669

Retail Trade $7,812

Wholesale $3,663

Transport. & Public Utilities $6,015

Manufacturing $26,588

Construction $29,235

Mining $1,688

Agri. Serv., Forestry, & Fish $586

Agriculture $331

$- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000

(millions of 2010 $)

$- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000

(millions of 2010 $)

0 100,000 200,000 300,000 400,000 500,000 600,000 700,000

(jobs)

SUMMARY EXHIBIT 2 

Cumulative National HTC Economic Impacts: 1978–2010
13

 executive SYNTHESIS | SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT

SUMMARY EXHIBIT 3

National HTC Economic Impacts: 2009–2010

Gross Domestic Product by Sector from Federal Historic Preservation Investment 

($8,419 million combined, FY 2009 and 2010)

Government $35

Services $1,120

Finance, Ins., & Real Estate $687

Retail Trade $519

Wholesale $294

Transport. & Public Utilities $434

Manufacturing $2,375

Construction $2,760

Mining $120

Agri. Serv., Forestry, & Fish $50

Agriculture $24

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000

(millions of 2010 $)

Income Created by Sector from Federal Historic Preservation Investment

($6,224 million combined, FY 2009 and 2010)

Government $22

Services $1,120

Finance, Ins., & Real Estate $385

Retail Trade $331

Wholesale $278

Transport. & Public Utilities $239

Manufacturing $1,452

Construction $2,292

Mining $70

Agri. Serv., Forestry, & Fish $27

Agriculture $8

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000

(millions of 2010 $)

0 10,000 20,000 30,000 40,000 50,000 60,000 70,000

(jobs)

Government 528

Services 23,501

Finance, Ins., & Real Estate 6,012

Retail Trade 16,905

Wholesale 4,858

Transport. & Public Utilities 5,690

Manufacturing 33,356

Construction 51,957

Mining 1,311

Agri. Serv., Forestry, & Fish 684

Agriculture 348

Jobs Created by Sector from Federal Historic Preservation Investment

(145,149 jobs combined, FY 2009 and 2010)
14

SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT | executive SYNTHESIS

SUMMARY EXHIBIT 4 

Employment Impacts to the National Economy from the Historic 

Tax Credit Rehabilitation Investment

FY 2009 and 2010

WA

OR

CA

NV

UT

MT

WY

CO

NM

TX

OK

KS

NE

SD

ND

MN

IA

MO

AR

LA

WI

IL

MS AL GA

FL

TN

KY

IN

MI

MI

OH

NC

VA

PA

NY MA

NH

VT

WV

DE

NJ

CT RI

ME

AZ

HI

SC

MD

ID

AK Legend

Employment

Number of Jobs

0–976

977–2,527

2,528–5,228

5,229–8,800

8,801–16,688
15

 executive SYNTHESIS | SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT

SUMMARY EXHIBIT 5 

Income Impacts to the National Economy from the Historic 

Tax Credit Rehabilitation Investment

FY 2009 and 2010

WA

OR

CA

NV

UT

MT

WY

CO

NM

TX

OK

KS

NE

SD

ND

MN

IA

MO

AR

LA

WI

IL

MS AL GA

FL

TN

KY

IN

MI

MI

OH

NC

VA

PA

NY MA

NH

VT

WV

DE

NJ

CT RI

ME

AZ

HI

SC

MD

ID

AK Legend

Income

Millions of 2010$

$0–$25

$26–$100

$101–$212

$213–$375

$376–$695
16

SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT | executive SYNTHESIS

SUMMARY EXHIBIT 6

Federal Historic Tax Credit, Fiscal Years 1978–2010

Sources: Department of the Interior, National Park Service, Technical Preservation Services; National Council of State 

Historic Preservation Offices; and calculations by Rutgers University.

Fiscal Year Investment Cumalative Investment Annual Tax Credit Cumalitive Annual

(millions $a Part 2s) (millions $a) Projects Approved Tax Credit Projects

(Part 2s) Approved

1978 140 140 512 512

1979 300 440 635 1,147

1980 346 786 614 1,761

1981 738 1,524 1,375 3,136

1982 1,128 2,652 1,802 4,938

1983 2,165 4,817 2,572 7,510

1984 2,123 6,940 6,214 13,724

1985 2,416 9,356 6,117 19,841

1986 1,661 11,017 2,964 22,805

1987 1,084 12,100 1,931 24,736

1988 865 12,965 1,092 25,828

1989 927 13,894 994 26,822

1990 750 14,642 814 27,636

1991 608 15,250 678 28,314

1992 491 15,741 719 29,033

1993 468 16,209 538 29,571

1994 641 16,850 560 30,131

1995 812 17,662 621 30,752

1996 1,130 18,792 724 31,476

1997 1,720 20,512 902 32,378

1998 2,085 22,597 1,036 33,414

1999 2,303 24,900 973 34,387

2000 2,602 27,502 1,115 35,502

2001 2,737 30,239 1,276 36,778

2002 3,272 33,511 1,198 37,976

2003 2,733 36,244 1,270 39,246

2004 3,878 40,121 1,200 40,446

2005 3,127 43,248 1,101 41,547

2006 4,082 47,330 1,253 42,800

2007 4,346 52,676 1,045 43,845

2008 5,641 57,317 1,213 45,058

2009 4,697 62,014 1,044 46,102

2010 3,418 65,432 951 47,053

a These figures are in nominal indicated year terms, that is not adjusted for inflation
17

 executive SYNTHESIS | SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT

SUMMARY EXHIBIT 7 

Federal Tax Incentives for Rehabilitating Historic Buildings,

Fiscal Years 1978–2010

SUMMARY EXHIBIT 8

Total Rehabilitation Costsa Associated with the Federal Historic

Tax Credit, Fiscal Years 1978–2010

Investments—Part 2s (Real 2010 $) Investments—Part 2s (Nominal $) Approved Projects—Part 2s

1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

FISCAL YEAR

$7.0

$6.0

$5.0

$4.0

$3.0

$2.0

$1.0

$0.0

INVESTMENTS (BILLIONS) Notes: Tallies are Part 2s

Notes: Figures are estimated and are in inflation adjusted 2010 dollars.

a

 Includes all rehabilitation outlays—both “eligible”/”qualified” and “ineligible”/”non-qualified” expenses.

1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

FISCAL YEAR

$6.0

$5.0

$4.0

$3.0

$2.0

$1.0

$0.0

ESTIMATED TOTAL ANNUAL PROJECT COSTS

(in billions of inflation adjusted 2010 $)

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

Offices; and calculations by Rutgers University.
18

SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT | executive SYNTHESIS

SUMMARY EXHIBIT 9

Federal Historic Tax Credit Involving Housing, Fiscal Years 1978–2010

Sources: Department of the Interior, National Park Service, Technical Preservation Services; and calculations by Rutgers University

Fiscal Year Total Number of Number of Units Number of Units Total Number of Percent of

housing units rehabilitated created low-/moderate- units completed

completed income units that are low-/

 moderate- income

1978 6,962 3,876 3,086 1,197 17%

1979 8,635 4,807 3,828 1,485 17%

1980 8,349 4,648 3,701 1,435 17%

1981 10,425 6,332 4,093 3,073 29%

1982 11,416 6,285 5,131 2,635 23%

1983 19,350 12,689 6,661 3,792 20%

1984 20,935 16,002 4,933 142 1%

1985 22,013 16,618 5,395 868 4%

1986 19,524 12,260 7,264 640 3%

1987 15,522 11,306 4,216 1,241 8%

1988 10,021 7,206 2,815 592 6%

1989 11,316 7,577 3,739 2,034 18%

1990 8,415 6,098 2,317 1,993 24%

1991 5,811 4,081 1,730 1,288 22%

1992 7,536 5,523 2,013 1,762 23%

1993 8,286 5,027 3,259 1,546 19%

1994 10,124 6,820 3,304 2,159 21%

1995 8,652 5,747 2,905 2,416 28%

1996 11,545 5,537 6,008 3,513 30%

1997 15,025 5,447 9,578 6,239 42%

1998 13,644 6,144 7,500 6,616 48%

1999 13,833 4,394 9,439 4,815 35%

2000 17,266 5,740 11,530 6,668 38%

2001 11,546 4,950 6,596 4,938 43%

2002 13,886 5,615 8,271 5,673 41%

2003 15,374 5,715 9,659 5,485 36%

2004 15,784 5,738 10,046 5,357 34%

2005 14,438 5,469 8,969 4,863 34%

2006 14,695 6,411 8,284 5,622 38%

2007 18,006 6,272 11,734 6,553 36%

2008 17,051 6,659 10,392 5,220 31%

2009 13,743 5,764 7,979 6,710 49%

2010 13,273 6,643 6,630 5,514 42%

Total 432,401 229,400 203,005 114,084 26%
19

 executive SYNTHESIS | SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT

SUMMARY EXHIBIT 10 

2009 Federal Historic Tax Credit Value by Zip Code in St. Louis, Missouri

Sources: Rutgers University (Luke Drake) and the Department of the Interior, National Park Service, Technical Preservation Services 

illinois

Total Dollar Value

$45,000–$2,300,000

$2,300,001–$9,090,000

$9,090,001–$19,900,000

$19,900,001–$42,646,357

Median Household Income (1999)

0–29,000

29,000-40,000

40,000–61,000

61,000–126,000

21

Rutgers University has estimated the real (inflation-adjusted to 2010 dollars) total rehabilitation investment throughout the United States that was enabled by the federal HTC 

at about $90.4 billion for the cumulative period FY 1978 through FY 2010 and approximately $8.8 billion for the combined FY 2009 and FY 2010 period. These two total federal tax credit-aided historic rehabilitation outlays can be translated into ensuing total 

economic benefits. Before quantifying these effects, we must explain what is meant by 

total economic impacts from an investment and how these are determined.

This study examines the total economic 

impacts of federal tax credit-aided historic rehabilitation, encompassing both the 

direct and multiplier effects. The direct

impact component consists of labor and 

material purchases made specifically for 

the rehabilitation activity. The multiplier

effects incorporate what are referred to 

as indirect and induced economic consequences. The indirect impact component 

consists of spending on goods and services by industries that produce the items purchased for the historic rehabilitation activity. The induced impact component focuses 

on the expenditures made by the households of workers involved either directly or 

indirectly with the activity. To illustrate, lumber purchased at a hardware store for 

historic rehabilitation is a direct impact. The purchases of the mill that produced the 

lumber are an indirect impact. The household expenditures of the workers at both the 

mill and the hardware store are induced impacts.

Economists estimate direct, indirect, and induced effects using an input-output (I-O) 

model. This study specifies the total economic effects of federal tax credit-aided 

historic rehabilitation through a state-of-the-art I-O model developed by the Rutgers 

University Center for Urban Policy Research (CUPR) for the National Park Service, Division of Cultural Resources, National Center for Preservation Technology and Training. The model is termed the Preservation Economic Impact Model (PEIM). 

SECTION 1

Economic Impacts of the Federal

Historic Tax Credit and the Importance

of State Historic Tax Credits

The real total rehabilitation investment 

enabled by the federal HTC at about $90.4 

billion for the cumulative period FY 1978 

through FY 2010 and approximately $8.8 

billion for the combined FY 2009 and FY

2010 period. 
22

SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT | section 1

In the current analysis, the PEIM is applied to both cumulative (FY 1978 through 2010) 

federal tax credit-aided historic rehabilitation investment in the United States (about 

$90.4 billion in 2010 inflation-adjusted dollars) and to the two-year FY 2009 – 2010 tax 

credit-aided rehabilitation investment (about $8.8 billion in 2010 dollars) throughout the 

nation. In applying the cumulative analysis, we consider the effects of the $90.4 billion 

rehabilitation investment as if effected in one year (2010), rather than retroactively backdating and applying the economic model for each of the 33 years encompassing the FY 

1978-2010 study period. The results of the PEIM model include many fields of data. The 

fields most relevant to this study are the total impacts of the following:

Jobs: Employment, both part- and full-time, by place of work, estimated 

using the typical job characteristics of each industry. (Manufacturing jobs, for 

example, tend to be full-time; in retail trade and real estate, part-time jobs 

predominate.) All jobs generated at businesses in the region are included, 

even though the associated labor income of in-commuters may be spent outside of the region. In this study, all results are for activities occurring within 

the time frame of one year. Thus, the job figures should be read as job-years, 

where several individuals might fill one job-year on any given project.

Income: “Earned” or labor income, specifically wages, salaries, and proprietors’ income. Income does not include non-wage compensation (such as benefits, pensions, or insurance); transfer payments; or dividends, interest, or rents.

Wealth: Value added—the sub-national equivalent of gross domestic 

product (GDP). At the state level, this is called gross state product (GSP) or, 

in some public data, GDP by state. Value added is widely accepted by economists as the best measure of economic well-being. It is estimated from statelevel data by industry. For a firm, value added is the difference between the 

value of goods and services produced and the value of goods and non-labor 

services purchased. For an industry, therefore, it is composed of labor income 

(net of taxes); taxes; non-wage labor compensation; profit (other than proprietors’ income); capital consumption allowances; and net interest, dividends, 

and rents received. 

Output: Of the measures in any input-output report, perhaps the least 

well-defined one is that labeled “output.” Output is defined as the value of 

shipments, which is reported in the Economic Census. The value of shipments 

is very closely related to the notion of business revenues. Thus it is NOT the 

“output” to which most other economists refer and which is better known as 

“gross domestic product” (GDP).

Taxes: Tax revenues generated by the activity. The tax revenues are detailed 

for the federal, state, and local levels of government. Totals are calculated 

by industry. 

Federal tax revenues include corporate and personal income, Social

Security, and excise taxes, estimated from calculations of value added

and income generated. 
23

section 1 | SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT

State tax revenues include income, excise, sales, and other state taxes, 

estimated from calculations of value added and income generated (e.g.

visitor purchases). 

Local tax revenues include payments to sub-state governments, mainly 

through property taxes on new worker households and businesses. Local 

tax revenues can also include sales and other taxes.

Exhibit 2.2 shows the cumulative economic impacts of the federal tax credit-aided historic rehabilitation over FY 1978 through FY 2010—a span of 33 years. Exhibit 2.3 quantifies the two year economic impacts of the federal tax credit-aided historic rehabilitation 

in FY 2009–FY 2010 alone. 

The major data reported in these two exhibits is organized into the following sections:

I. Total Effects

II. Distribution of Effect/Multiplier

III. Composition of Gross State Product

IV. Tax Accounts

V. Effects Per Million Dollars of Initial Expenditure

Each of these sections is described in detail in Exhibit 2.3. With this background presented, we can turn to our findings.

ECONOMIC IMPACTS OF CUMULATIVE FEDERAL HISTORIC TAX

CREDIT-AIDED TOTAL REHABILITATION INVESTMENT IN THE UNITED 

STATES (FY 1978–2010)

Between FY 1978 and 2010, an estimated cumulative total of about $90.4 billion 

of historic rehabilitation was aided by the federal historic tax credit. The total economic impacts to the nation from the $90.4 billion in cumulative historic rehabilitation spending include about 2.0 million jobs generating an additional $210.2 billion in 

output, $76.3 billion in income, $103.8 billion in gross domestic product (GDP), and 

$30.5 billion in taxes ($22.3 billion federal government taxes, $4.2 billion state government taxes, and $4.1 billion local government taxes). (See Exhibit 2.2). 

The benefits that accrue from the cumulative investment in federal tax credit-aided 

historic rehabilitation projects are extensive. Almost all sectors of the nation’s economy 

see their payrolls and production increased (Exhibit 2.2). Just under 30 percent of the 

national-based jobs from the cumulative $90.4 billion tax credit-aided rehabilitation 

investment (approximately 592,000 of 2,021,000 jobs) and national gross domestic 

product ($29.2 billion of $103.8 billion GDP) created by historic rehabilitation aided 

by the cumulative federal HTC accrue to the nation’s construction industry; this is as 

one would expect, given the share of such projects that require the employment of 

building contractors. Other major economic sector beneficiaries are services (360,000 

jobs, $13.7 billion in GDP) as well as manufacturing (411,000 jobs, $26.6 billion GDP) 

and the retail trade (298,000 jobs, $7.8 billion GDP) sectors. The finance insurance and 

real estate (FIRE) sector garners 154,000 jobs and $13.7 billion GDP. As a result of the 
24

SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT | section 1

7 This should be interpreted as follows in applying the cumulative FY 1978-2010 analysis. We consider the effects of the 

$90 billion investment as if effected in one year, namely 2010. Thus, when Exhibit 2.4 shows the economic effects for each 

year over FY 1978-2010, we are not backdating the model to each of these years, but rather indicating what each year’s 

investment realizes in 2010 values.

8 The absolute peak was in 2009 when the total rehabilitation investment related to the federal historic tax credit reached 

about $5.0 billion in inflation-adjusted 2010 dollars.

interconnectedness of the national economy and because both direct and multiplier 

effects are considered, other segments of the national economy not immediately 

associated with historic rehabilitation are affected as well, such as agriculture, mining and transportation and public utilities, or TPU. (See Exhibit 2.2 for details.) For 

instance the TPU sector realizes a gain of 79,000 jobs and about $6.0 billion of GDP. 

Exhibit 2.4 summarizes the key economic effects (employment, income, GDP, output, and taxes) by year of the federal tax credit-aided rehabilitation investment for 

each of the 33 years spanning the FY 1978–FY 2010 study period.7 For instance, in 

inflation-adjusted dollars, 1985 was the near peak year8 of investment when $4.7 billion of total federal tax credit-aided rehabilitation investment occurred. (This timing 

was no accident as the 1985 peak reflected the run-up of investor interest evoked 

by the expanded scope of the tax credits brought about by the Economic Recovery Tax of 1981.) As the near peak year of investment, 1985 would also have realized more significant economic benefits from the federal tax credit-aided activity, 

such as about 105,000 jobs and $4.0 billion income. (These and the other values in 

Exhibit 2.4 are in 2010 terms.) See Exhibit 2.4 for more detail on the 1985 economiceffects from the HTC as well as for earlier or later years. 

ECONOMIC IMPACTS OF FEDERAL HISTORIC TAX CREDIT-AIDED

REHABILITATION INVESTMENT IN THE UNITED STATES, COMBINED

FY 2009 AND 2010

As noted earlier, the federal historic tax credit-aided rehabilitation investment in FY 

2009 and 2010 combined is about $8.8 billion. The total national economic impacts 

of this include 145,000 jobs generating $16.6 billion in output, $8.4 billion in GDP, 

$6.2 billion in income and $2.2 billion in total taxes ($1.5 billion federal government, 

$0.4 billion state government, and $0.4 billion local government). (See Exhibit 2.3.) 

As with the cumulative FY 1978–FY 2010 rehabilitation effects, the two-year FY 2009 

and 2010 investment in historic rehabilitation accrues benefits across the national 

economy (Exhibit 2.3). For instance, of the $8.4 billion in GDP, $2.7 billion, $2.4 billion, 

and $1.1 billion are found among the following three economic sectors respectively: 

construction, manufacturing, and services. GDP gains of about $500 to $700 million apiece are realized by the retail trade industry and as well as the finance, insurance, and real estate industry. A GDP addition of about $300 million is realized by the 

wholesale sector. (See Exhibit 2.3 for further details.) 

The national impacts of the two-year FY 2009 and 2010 federal tax credit-aided rehabilitation investment from each state as of that year is summarized in Exhibit 2.5. For 

instance, the eleven states shown below had considerably varying levels of tax credit 

investment as of FY 2009 and 2010 and with that, very different levels of national-
25

section 1 | SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT

level job and income effects. While the effects to the nation are shown, as we shall see 

below, most of the benefit is retained within each state’s boundaries.

The considerable state-level capture of the national-level economic effects from the 

federal tax credit-aided rehabilitation investment is illustrated through reconnaissance investigation in three states: Illinois, Missouri, and Pennsylvania. In FY 2009 

and 2010, the federal tax credit-aided rehabilitation investment in these three locations amounted to $216.3 million, $974.1 million, and $380.0 million, respectfully. For 

these three states, we quantify national-level and state-level impacts, the latter a 

new geographic analysis not yet conducted in this study. The results are summarized 

in Exhibit 2.6. 

For example, the national economic impacts of the FY 2009 and 2010 $974.1 million 

in tax credit-aided historic rehabilitation investment in Missouri include 16,700 jobs 

generating an additional $1.9 billion in output, $695 million in income, $920 million in 

GDP, and $161 million in taxes (Exhibit 2.6, upper portion). The Missouri retained portion (Exhibit 2.6, lower portion), of the FY 2009 and 2010 $974.1 million in historic 

rehabilitation spending translates to 12,400 jobs generating $1.2 billion in output, 

$523 million in labor income, $641 million in gross state product (GSP), and $199 

million in taxes. The in-state wealth (GSP minus business-paid federal taxes) resulting from rehabilitation expenditures amounts to $569 million, indicating a high 89 

percent retention rate.

Similar high state-level retention rates characterize Illinois and Pennsylvania as well. 

(Compare the state-level economic impact portion of Exhibit 2.6 to the national-level 

economic impact portion of same exhibit.) It stands to reason that the lion’s share of 

Alabama $21.6 399 $13.7

Florida $381.4 6,647 $269.4

Illinois $216.2 3,188 $157.4

Indiana $168.3 2,950 $120.3

Michigan $528.8 8,402 $374.6

New York $491.7 8,135 $350.4

Ohio $238.5 4,284 $169.8

Oregon $195.8 3,463 $142.1

Pennsylvania $380.0 6,176 $275.8

Virginia $727.9 12,250 $520.9

Washington $115.6 1,852 $82.9

Jobs Income

(in 2010 $ millions)

State FY 2009 and 2010 HTC-Aided Selected National Economic Impacts

Rehabilitation Investment

(in 2010 $ millions)
26

SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT | section 1

the economic benefits from the construction activity aided by the federal tax credit 

stays within a given state’s boundaries as opposed to “leaking” elsewhere9. That is 

borne out by the three states (Illinois, Missouri, and Pennsylvania) reconnaissance 

investigation and likely characterizes most other states as well. Thus, much of the 

national-level impacts from the FY 2009 and 2010 federal historic tax credit-aided 

investment that occurs in each state (Exhibit 2.5) is likely retained at the state level. 

STATE HISTORIC TAX CREDIT AND LESSONS

FROM THE HEARTHLAND—KANSAS

A total of 33 states have already supplemented the federal historic tax credit (HTC) with 

a state HTC of their own; an additional four states have legislation introduced to create a 

state level credit that would supplement the federal HTC. These 37 innovating states are 

shown in Exhibit 2.7 with further detail on these state HTCs available from Novogradac 

and Company LLP. 

An example of the prowess of a state HTC is provided by the Kansas state historic tax 

credit (KHTC). We summarize the following description of the KHTC from Rutgers 

University research completed in March 2010.10 (Note: some of the specifics of the 

KHTC have changed since the release of this report).

Implemented in state fiscal year 2002, the KHTC provides for a state income tax 

credit equal to 25 percent (30 percent for non-profits) of qualified expenses on 

qualified historic structures used for either income-producing or non-income producing purposes. The KHTC builds from and adds to a federal HTC (20 percent) 

which has been in place for decades. As other state historic tax credits and reflecting the best of creative federalism, the KHTC is more flexible to use than the federal HTC. Examples of more flexible KHTC provisions include: an ability to apply 

the credit to historic residences (the federal HTC is restricted to income-producing 

properties only), a more realistic minimum investment requirement (the federal requirements in this regard disqualifies many worthwhile projects), the right to transfer the state tax credits so as to make these more attractive to investors (prohibited 

in the federal HTCs), and the ability for non-profit organizations to use the state 

HTC (severely limited with respect to the federal HTC).

The KHTC may be used in combination with the federal HTC (thus offering a combined credit of 45 percent) or only the 25 percent state tax credit may be used (e.g., 

in instances where the federal HTC is ineligible, such as the rehabilitation of a residence as opposed to an income-producing property). 

From FY 2002 through FY 2009, the KHTC has aided about 540 completed projects 

with an aggregate estimated total project dollar cost11 of $245 million, or $271 million 

in inflation-adjusted (2009) dollars. A state tax credit of about $53 million, or $69 

million in inflation adjusted dollars, enabled the rehabilitation investment: an approxi9 The amount of “leakage” will vary by state, for instance, whether or not a state can supply the steel and lumber

used in renovation.

10 David Listokin, Michael Lahr, McCaela Daffern, David Stanek and Deb Sheals, Economic Benefits and Impact of Historic 

Rehabilitation Tax Credits in Kansas. Research conducted by the Rutgers University Center for Urban Policy Research for 

the Kansas Preservation Alliance. March 2010.
27

section 1 | SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT

mate 1 to 4 tax credit to investment ratio—

that reflects the typical 25 percent KHTC.

The KHTC has been used widely in Kansas—in about 50 counties—because many 

locations in this state have tax credit-eligible 

buildings. These buildings need rehabilitation 

which is abetted by the tax credit’s financial 

incentive. The overall widespread geographic 

incidence of the Kansas historic tax credit 

is shown in Exhibit 2.8, which indicates the 

Kansas county distribution of the credit by 

project cost (totaling to $245 million). 

While there is general widespread use of the 

state historic tax credits in Kansas, there are 

“hotspots” of more intense utilization of the 

program (see Exhibit 2.8) reflecting understandably such factors as the clustering of 

the state’s population and business activity 

(e.g., more in the Kansas River Valley and 

Central Wichita regions and less in rural 

western Kansas) and other influences (e.g., 

the distribution of the state’s older urban 

and rural centers and varying local knowledge of and interest in the program).

What is the nature of the local areas where 

the KHTC has been used? We conclude this 

chapter by describing selected population 

and housing characteristics of the zip codes 

where the KHTC has been used (all zip codes and “top 10” KHTC activity zip codes) 

and how these compare to the average for all zip codes in Kansas. The information is 

summarized in Exhibit 2.9. It shows that relative to the population and housing characteristics of all zip codes in Kansas, zip codes in this state where the Kansas historic tax 

credit has been used (both all such zip codes and “top 10” KHTC activity zip codes) 

have the following relative characteristics:

1. Higher density (population per square mile)

2. Higher share of population classified as “urban”

3. Greater minority population (i.e., higher percentage of non-whites

and Hispanics)

4. Lower median household income and higher economic distress (as measured 

by percentage in poverty and percentage unemployed)

11 This cost is for the total rehabilitation outlay which includes both “qualifying expenses”—the portion of total rehabilitation 

costs that qualify for the state tax credit (e.g., rehabilitation of walls, door and windows; construction-period interest and 

architect fees) and “non-qualifying expenses”—outlays that are not eligible for the state tax credit (e.g., infrastructure, 

parking lots, sidewalks and landscaping).

Cleveland Institute of Art (CIA) McCullough Center, 

Cleveland, Ohio: The Cleveland Institute of Art received a 

2011 Preservation Award from the Cleveland Restoration Society 

and AIA Cleveland commending the renovation of the 96-yearold Joseph McCullough Center for the Visual Arts on Euclid 

Avenue. “We are delighted to receive this recognition from the 

Cleveland Restoration Society and AIA Cleveland,” said CIA 

President Grafton J. Nunes.
28

SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT | section 1

5. Higher share of renter-occupied housing (as opposed to owner-occupied)

6. Similar housing value (for owner-occupied home)

7. Greater housing affordability problem (as measured by households paying 

more than 30 percent of their income for housing expenses)

These characteristics of the local “hotspots” of KHTC activity strongly suggest that 

the program is aiding areas of higher stress and need.

The KHTC has markedly enhanced HTC investment in Kansas. In the 21-year preKansas HTC period, there were a total of 50 federal HTC projects or an annual 

average of 2.4 projects per year. In the 8 year post-Kansas HTC period, there was 

an approximate tenfold increase to 542 Kansas HTC projects (both state-alone and 

state-and-federal-combined) and the annual average project volume increased 

almost 30 times to 68 HTC projects yearly. Rehabilitation project cost also mushroomed. In the 21 year pre-Kansas HTC period, a total of $114 million (inflationadjusted 2009 dollars) was expended on federal HTC-assisted projects, or an 

average of about $5.4 million per year. In the 8-year span (FY 2002-2009) when 

the Kansas HTC has been in effect, there was almost a two and a half-fold increase 

in Kansas HTC projects (again both state-alone and state-and-federal-combined) 

to $271 million and the annual average project volume rose six-fold to $33.9 million 

(all inflation-adjusted to 2009 dollars).

Others observing this before-and-after picture have remarked on the spurt of tax 

credit-aided historic rehabilitation investment that took place in Kansas after the 

state tax credit was put in place. The following quote from the Kansas State Historical Society (2006) is illustrative: 

In Kansas, the federal tax credit program has been active since the late 1970s, 

but the activity has been very limited in comparison to other states. For many 

years, Kansas’ neighbor to the east, Missouri, ranked at the top of the list for 

numbers of projects and for investments by property owners in these rehabilitations. Kansas saw fifty federal tax credit projects between 1980 and 2001... 

During those years, Kansas ranked between thirty-second and forty-eight 

among the states and territories for numbers of projects and amounts invested.

Beginning in 2001, Kansas added a second tax credit tool: its State Rehabilitation Tax Credit Program...Kansas has seen more federal tax credit projects and 

more investment in historic rehabilitation in the last five years than in the previous twenty. Since 2001, sixty-five federal tax credit projects were completed, 

with an additional 173 new state tax credit projects. These 238 projects represent an investment of more than $98 million in Kansas’ historic properties.

While there are many influences on the magnitude of tax credit-aided investment 

in historic rehabilitation, such as the varying market demand-supply, bank loan 

availability, and interest rates linked to the fluctuating national and state economic 

and real estate cycles, the evidence in Kansas and other states (e.g., Missouri) suggests that the presence of a state tax credit and the terms of that credit do influence investment in the historic building stock.
29

section 1 | SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT

What is the overall impact of the state historic tax credit program on the state’s economy? The short answer 

is quite substantial for major economic benefits have 

ensued from the KHTC-aided investment (Exhibit 2.10). 

The in-state (to Kansas) total (direct and multiplier) 

economic impact from the $271 million of KHTC-assisted rehabilitation include 4,443 jobs generating $323 

million in output (total value of economic shipments), 

$142 million in labor income, $183 million in gross state 

product or GSP (wealth or value added at the state 

level), and $56 million in taxes ($41 million federal, $8 

million state, and $7 million local).

The benefits that accrue to Kansas from the cumulative 

investment in tax credit-aided historic rehabilitation 

projects are extensive. Almost all sectors of the state’s 

economy see their payrolls and production increased. 

Just under half of the Kansas-based jobs from the 

cumulative ($271 million) tax credit-aided rehabilitation investment (2,003 of 4,443 jobs) and Kansas gross 

state product ($84.8 million of $182.9 million GSP) created by historic rehabilitation within Kansas accrue to 

the state’s construction industry. This is as one would 

expect, given the share of such projects that require 

the employment of building contractors. Other Kansas 

major beneficiaries are services (832 jobs, $27.6 million in GSP) as well as the retail trade (605 jobs, $14.4 

million GSP) and manufacturing (500 jobs, $26.1 million 

GSP) sectors. As a result of the interconnectedness of 

a state’s economy and because both direct and multiplier effects are considered, 

other sectors of the economy not immediately associated with historic rehabilitation are affected as well, such as agriculture, mining and transportation and public 

utilities (Exhibit 2.10).

How does tax credit-aided historic rehabilitation fare as an economic pump-primer 

vis-à-vis other non-preservation investments? The short answer is quite well. A $1 million investment in historic rehabilitation in Kansas realizes a markedly better economic effect to Kansas with respect to employment, income, GSP, and state-local taxes 

compared to a similar increment of investment (i.e. $1 million) in an array of residential and nonresidential new construction (including building highways) in Kansas or 

a $1 million investment in an array of business activities important in Kansas, such as 

manufacturing (e.g., electrical machinery and automobile), agriculture (wheat farming), and services (telecommunication). It is not a question of historic rehabilitation as 

opposed to other pursuits, but rather historic rehabilitation joining in a holistic fashion 

the many activities of the broader economy in Kansas so as to realize the commendable strong economic “bang for the buck” offered by that rehabilitation.

Mayo 420, Tulsa, Oklahoma: Opened in 1910, 

Mayo 420, at Fifth and Main streets is one of Tulsa’s 

oldest buildings. It is also one of Tulsa’s more 

historic structures and is on the National Register of 

Historic Places. Its roots are deep in the history of 

Tulsa’s oil boom.
30

SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT | section 1

Case study analysis of KHTC implementation points to many additional qualitative benefits of the state tax credit, ranging from providing affordable housing to 

encouraging downtown economic development. For instance, an observer of the 

Philip Hardware Store rehabilitation concluded that the rehabilitation of the store 

and other projects in Hays “would not have been possible to date without the 

tax credit programs. The funds associated with redevelopment cost exceed the 

amounts that can be satisfied or borrowed, so the tax credits provide the 

necessary incentive to continue with 

the projects.”

The cases have also sprouted local 

economic “shoots.” For example, in 

the Eagle’s Lodge project, almost all 

the $800,000 spent to rehabilitate 

the building occurred in Wichita or 

environs; all of the contractors and suppliers of material were from Wichita or 

nearby towns. The property owner is now paying more than five times as much 

property tax as he was before the rehabilitation.

The case studies also point to how the KHTC (as well as other allied programs) 

have helped foster the stabilization-revitalization of older yet important neighborhoods in Kansas and have encouraged adaptive reuse, sometimes with the 

added bonus of providing affordable housing. To illustrate, the Roosevelt-Lincoln 

project converted a recently vacated public school in downtown Salina into 61 

low-income senior apartments; a property once described by the local newspaper 

as having the potential to become a “conspicuous downtown eyesore” is now an 

architectural gem in the center of the community. Concerning the Eagle’s Lodge 

rehabilitation and other KHTC efforts in Wichita, the city’s senior planner concluded that “the historic tax credits are an invaluable tool for relocating businesses in 

the downtown area.” A Leavenworth County commissioner described the renovated county courthouse as a “masterpiece” and noted that the refurbished building 

has been very popular with the general public.

A Leavenworth County commissioner 

described the renovated county 

courthouse as a “masterpiece” and noted 

that the refurbished building has been

very popular with the general public.
31

section 1 | SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT

The economic divisional-level results specified in the current study (Exhibits 2.1 and 2.2) 

include the following sections explained below.

Section I—Total Effects

Total effects by division including both direct and multiplier (indirect and induced) effects.

Section II—Distribution of Effects Multiplier

II.1 Sum of all division direct effects

II.2 Sum of all division multiplier (indirect and induced) effects

II.3 Total effects (the sum of II.1 and II.2)

II.4 Multiplier ratio of total effects (II.3) divided by direct effects (II.1)

Section III—Composition of Gross State Product

This comprises:

III.1 Wages that are Net of taxes paid at the employer’s locationa;

III.2 Taxes—local state and federal; and

III.3 Profits, dividends, rents, and other—which depending on the year of the GDP data 

used in the analysis, geography, and sector involved can be either positive or negative.

III.4 Total gross state product (sum of III.1, III.2, and III.3)—the latter is from the firms

(or “business”) expenditure accounts

Section IV—Tax Accounts

The sum of taxes remitted by both business (see Section III) and households (where the latter are not included in the section III gross state product) accounts. Section IV encompasses 

for both business and households:

IV.1 Wages—Net of taxes at place of work (for business) and place of residence for non

in-commuting households. 

IV.2 Taxes by level of government (local, state, and federal) and type (e.g., for federal—

general and social security). Note: the taxes in Section III are for business only while

taxes in Section IV include the business taxes from Section III and add as well

household-generated taxes. 

a Wages—Net of taxes are not the same as “income” (shown in Section I) for income includes wages, salaries, proprietor’s income, and employer-paid taxes.

EXHIBIT 2.1 

Explanation of Division-Level Economic Impacts Specified

in the Current Study
32

SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT | section 1

EXHIBIT 2.2

Economic and Tax Impacts of Federal HTC Investment on the Nation,

Fiscal Years 1978-2010 ($90.4 Billion)

 Economic Component

Output (0$) Employment Income (0$) Gross Domestic

(jobs) Product (0$)

I. TOTAL EFFECTS (Direct and Indirect/Induced)* 

1. Agriculture 2,230,031.8 14,695 154,896.4 330,904.0 

2. Agri. Serv., Forestry, & Fish 1,082,070.7 19,630 376,566.3 586,265.8 

3. Mining 3,945,475.2 16,448 961,677.6 1,687,869.5 

4. Construction 41,056,241.6 591,911 23,909,149.6 29,234,541.1 

5. Manufacturing 74,524,759.6 410,868 17,308,897.7 26,587,840.3 

6. Transport. & Public Utilities 14,405,536.6 79,216 3,596,443.4 6,014,633.0 

7. Wholesale 8,621,910.1 67,910 3,506,120.2 3,663,277.8 

8. Retail Trade 13,417,654.7 297,977 4,937,027.0 7,811,589.3 

9. Finance, Ins., & Real Estate 20,117,726.6 153,818 7,879,176.8 13,668,575.2 

10. Services 29,732,142.6 359,557 13,337,163.1 13,696,204.0 

11. Government 1,073,130.1 8,744 325,263.2 509,031.1 

Total Effects (Private and Public) 210,206,679.6 2,020,774 76,292,381.3 103,790,731.2 

II. DISTRIBUTION OF EFFECTS/MULTIPLIER 

1. Direct Effects 90,422,841.7 952,230 40,155,662.1 48,960,416.1 

2. Indirect and Induced Effects 119,783,837.9 1,068,544 36,136,719.2 54,830,315.1 

3. Total Effects 210,206,679.6 2,020,774 76,292,381.3 103,790,731.2 

4. Multipliers (3/1) 2.325 2.122 1.900 2.120 

III. COMPOSITION OF GROSS STATE PRODUCT 

1. Wages—Net of Taxes 64,768,823.1 

2. Taxes 15,136,259.7 

a. Local 2,322,977.9 

b. State 2,283,606.2 

c. Federal 10,529,675.7 

 General 2,349,936.8 

 Social Security 8,179,738.9 

3. Profits, dividends, rents, and other 23,885,648.3 

4. Total Gross State Product (1+2+3) 103,790,731.2 

 Business (000$) Household (000$) Total (000$)

IV. TAX ACCOUNTS

1. Income—Net of Taxes 64,768,823.1 76,292,381.3 ---------

2. Taxes 15,136,259.7 15,370,849.7 30,507,109.4 

a. Local 2,322,977.9 1,741,616.5 4,064,594.4 

b. State 2,283,606.2 1,870,357.0 4,153,963.2 

c. Federal 10,529,675.7 11,758,876.1 22,288,551.9 

 General 2,349,936.8 11,758,876.1 14,108,812.9 

 Social Security 8,179,738.9 0.0 8,179,738.9 

INITIAL EXPENDITURE IN DOLLARS 90,422,841,705.3

Note: Detail may not sum to totals due to rounding.

Terms: Direct Effects—the proportion of direct spending on goods and services produced in the specified region. Indirect Effects—the value of goods 

and services needed to support the provision of those direct economic effects. Induced Effects—the value of goods and services needed by households 

that provide the direct and indirect labor.
33

section 1 | SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT

EXHIBIT 2.3

Economic and Tax Impacts of Federal HTC Investment on the Nation,

Fiscal Year 2009 and 2010 ($8.8 Billion)

 Economic Component

Output (0$) Employment Income (0$) Gross Domestic

(jobs) Product (0$) 

I. TOTAL EFFECTS (Direct and Indirect/Induced)* 

1. Agriculture 112,007.2 348 8,225.4 23,778.2 

2. Agri. Serv., Forestry, & Fish 79,497.5 684 26,953.1 50,455.1 

3. Mining 261,042.9 1,311 69,870.5 120,075.4 

4. Construction 3,888,303.0 51,957 2,291,759.6 2,760,055.9 

5. Manufacturing 6,121,511.8 33,356 1,452,441.3 2,375,450.6 

6. Transport. & Public Utilities 911,444.2 5,690 238,548.7 433,987.5 

7. Wholesale 682,630.8 4,858 277,593.4 294,274.1 

8. Retail Trade 899,286.5 16,905 331,068.7 518,758.6 

9. Finance, Ins., & Real Estate 1,084,862.0 6,012 385,127.3 686,974.3 

10. Services 2,470,221.3 23,501 1,119,710.9 1,119,887.6 

11. Government 73,786.4 528 22,343.1 34,889.2 

Total Effects (Private and Public) 16,584,593.7 145,149 6,223,642.2 8,418,586.6 

II. DISTRIBUTION OF EFFECTS/MULTIPLIER 

1. Direct Effects 8,786,278.7 83,558 3,902,233.1 4,836,132.7 

2. Indirect and Induced Effects 7,798,315.0 61,592 2,321,409.1 3,582,453.9 

3. Total Effects 16,584,593.7 145,149 6,223,642.2 8,418,586.6 

4. Multipliers (3/1) 1.888 1.737 1.595 1.741 

III. COMPOSITION OF GROSS STATE PRODUCT 

1. Wages—Net of Taxes 5,237,825.4 

2. Taxes 1,224,492.2 

a. Local 280,929.4 

b. State 230,822.5 

c. Federal 712,740.2 

 General 186,632.9 

 Social Security 526,107.3 

3. Profits, dividends, rents, and other 1,956,269.0 

4. Total Gross State Product (1+2+3) 8,418,586.6 

 Business (000$) Household (000$) Total (000$)

IV. TAX ACCOUNTS

1. Income—Net of Taxes 5,237,825.4 4,907,000.1 ---------

2. Taxes 1,224,492.2 993,596.3 2,218,088.5

a. Local 280,929.4 111,336.7 392,266.2

b. State 230,822.5 125,948.0 356,770.6

c. Federal 712,740.2 756,311.5 1,469,051.7

 General 186,632.9 756,311.5 942,944.4

 Social Security 526,107.3 0.0 526,107.3

INITIAL EXPENDITURE IN DOLLARS 8,788,430,948.0

Note: Detail may not sum to totals due to rounding.

Terms: Direct Effects—the proportion of direct spending on goods and services produced in the specified region. Indirect Effects—the value of goods 

and services needed to support the provision of those direct economic effects. Induced Effects—the value of goods and services needed by households 

that provide the direct and indirect labor.
34

SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT | section 1

exhibit 2.4

Economic and Tax Impacts of Federal HTC Investment on the Nation by 

Year, Fiscal Years 1978–2010

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

Preservation Offices; and calculations by Rutgers University

1978 $453,348,745 10,131 $382,504 $520,371 $1,053,903 $20,378 $20,827 $111,747 $152,952

1979 $1,269,558,573 28,372 $1,071,163 $1,457,247 $2,951,353 $57,068 $58,323 $312,937 $428,327

1980 $2,107,808,562 47,105 $1,778,419 $2,419,422 $4,900,039 $94,748 $96,831 $519,559 $711,138

1981 $2,839,431,235 63,456 $2,395,711 $3,259,206 $6,600,848 $127,635 $130,442 $699,898 $957,975

1982 $3,342,765,201 74,704 $2,820,388 $3,836,951 $7,770,952 $150,261 $153,564 $823,967 $1,127,791

1983 $4,700,182,249 105,040 $3,965,680 $5,395,046 $10,926,550 $211,278 $215,923 $1,158,560 $1,585,761

1984 $4,612,140,074 103,072 $3,891,397 $5,293,987 $10,721,878 $207,320 $211,879 $1,136,858 $1,556,057

1985 $4,718,203,915 105,443 $3,980,886 $5,415,732 $10,968,445 $212,088 $216,751 $1,163,002 $1,591,841

1986 $3,710,969,506 82,933 $3,131,053 $4,259,590 $8,626,920 $166,812 $170,479 $914,726 $1,252,017

1987 $2,901,946,096 64,853 $2,448,456 $3,330,963 $6,746,177 $130,445 $133,313 $715,308 $979,067

1988 $2,399,434,359 53,623 $2,024,473 $2,754,161 $5,577,984 $107,857 $110,228 $591,443 $809,528

1989 $2,199,682,441 49,159 $1,855,936 $2,524,878 $5,113,619 $98,878 $101,052 $542,205 $742,135

1990 $1,839,746,789 41,115 $1,552,248 $2,111,730 $4,276,874 $82,698 $84,517 $453,484 $620,699

1991 $1,586,640,954 35,458 $1,338,695 $1,821,206 $3,688,477 $71,321 $72,889 $391,095 $535,305

1992 $1,807,381,487 40,391 $1,524,940 $2,074,580 $4,201,634 $81,244 $83,030 $445,506 $609,779

1993 $1,301,809,885 29,093 $1,098,375 $1,494,266 $3,026,328 $58,518 $59,804 $320,886 $439,208

1994 $1,110,195,734 24,811 $936,704 $1,274,324 $2,580,881 $49,904 $51,002 $273,655 $374,561

1995 $1,253,677,888 28,017 $1,057,764 $1,439,019 $2,914,435 $56,354 $57,593 $309,022 $422,969

1996 $1,626,537,069 36,350 $1,372,357 $1,867,000 $3,781,223 $73,114 $74,722 $400,929 $548,766

1997 $1,423,390,664 31,810 $1,200,956 $1,633,821 $3,308,967 $63,983 $65,390 $350,855 $480,227

1998 $1,374,472,751 30,717 $1,159,683 $1,577,671 $3,195,247 $61,784 $63,142 $338,797 $463,723

1999 $1,814,454,681 40,550 $1,530,908 $2,082,699 $4,218,077 $81,561 $83,355 $447,249 $612,166

2000 $3,094,717,701 69,161 $2,611,103 $3,552,233 $7,194,314 $139,111 $142,169 $762,825 $1,044,104

2001 $3,176,070,983 70,979 $2,679,743 $3,645,613 $7,383,437 $142,767 $145,907 $782,878 $1,071,552

2002 $3,550,452,381 79,346 $2,995,620 $4,075,342 $8,253,764 $159,596 $163,105 $875,160 $1,197,861

2003 $4,645,847,892 103,826 $3,919,837 $5,332,679 $10,800,239 $208,835 $213,427 $1,145,167 $1,567,429

2004 $3,327,176,562 74,356 $2,807,236 $3,819,058 $7,734,713 $149,560 $152,848 $820,124 $1,122,532

2005 $3,326,897,106 74,350 $2,807,000 $3,818,737 $7,734,063 $149,547 $152,835 $820,055 $1,122,438

2006 $3,281,778,903 73,341 $2,768,932 $3,766,949 $7,629,177 $147,519 $150,763 $808,934 $1,107,216

2007 $3,331,028,357 74,442 $2,810,485 $3,823,479 $7,743,667 $149,733 $153,025 $821,073 $1,123,832

2008 $3,482,931,160 77,837 $2,938,650 $3,997,839 $8,096,797 $156,561 $160,003 $858,516 $1,175,081

2009 $4,992,091,494 111,564 $4,211,973 $5,730,110 $11,605,154 $224,399 $229,333 $1,230,513 $1,684,246

2010 $3,820,070,310 85,371 $3,223,104 $4,384,820 $8,880,547 $171,716 $175,491 $941,619 $1,288,826

Totals $90,422,841,705 2,020,774 $76,292,381 $103,790,731 $210,206,680 $4,064,594 $4,153,963 $22,288,552 $30,507,109

Year Total Rehab. National Economic Impacts Tax Impacts (2010 $ thousands)

 Costs (2010

$ millions) employment local state

(jobs)

2010 $ millions

income gdp output

federal total
35

section 1 | SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT

EXHIBIT 2.5 

Economic and Tax Impacts of Federal HTC Investment on the Nation by 

State, Fiscal Years 2009 and 2010

AL $21.6 399 $13.7 $25.8 $35.5 $383.6 $571.1 $3,298.4 $4,253.1

AK $23.7 0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

AZ $11.5 199 $6.8 $8.8 $22.2 $10,933.6 $7,060.6 $1,929.2 $19,923.4

AR $34.5 714 $24.0 $35.8 $63.7 $684.0 $1,249.0 $5,775.7 $7,708.7

CA $462.6 6,900 $335.4 $438.0 $905.1 $11,673.2 $18,665.9 $84,974.8 $115,313.9

CO $5.1 328 $3.6 $5.0 $9.6 $130.1 $165.7 $851.8 $1,147.7

CT $100.9 1,445 $70.3 $97.7 $184.6 $5,315.6 $4,507.3 $16,178.2 $26,001.1

DE $16.6 263 $11.7 $16.0 $31.0 $767.7 $806.0 $2,618.4 $4,192.1

DC $205.7 2,988 $138.7 $187.5 $362.1 $13,828.8 $5,546.6 $28,107.9 $47,483.3

FL $381.4 6,647 $269.4 $364.9 $713.9 $19,719.8 $11,918.4 $64,336.0 $95,974.2

GA $33.2 655 $23.0 $33.9 $60.7 $1,564.9 $1,519.3 $5,612.4 $8,696.5

HI $0.0 0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

ID $2.2 42 $1.5 $2.1 $3.9 $51.1 $53.1 $324.0 $428.2

IL $216.3 3,188 $157.4 $203.2 $422.3 $6,853.0 $6,220.4 $37,873.8 $50,947.1

IN $168.3 2,950 $120.3 $161.9 $321.2 $55,457.1 $36,951.8 $28,607.4 $121,016.3

IA $96.0 1,735 $65.0 $97.0 $168.9 $3,213.8 $2,859.6 $15,054.8 $21,128.2

KS $87.7 1,593 $61.3 $84.9 $162.6 $20,694.9 $14,397.4 $14,110.6 $49,202.8

KY $69.5 1,331 $48.1 $68.0 $127.3 $6,954.3 $5,538.7 $11,083.1 $23,576.2

LA $634.7 11,213 $452.4 $592.7 $1,202.4 $22,144.2 $23,067.7 $104,131.9 $149,343.7

ME $64.4 976 $37.9 $56.9 $123.5 $2,923.0 $2,717.1 $10,204.2 $15,844.3

MD $338.5 5,228 $237.6 $319.5 $627.9 $10,983.2 $9,937.3 $54,192.2 $75,112.7

MA $677.3 8,801 $475.3 $637.6 $1,261.2 $18,069.6 $21,800.7 $109,311.7 $149,182.1

MI $528.8 8,402 $374.6 $501.9 $997.5 $15,673.4 $19,060.1 $87,346.4 $122,079.8

MN $32.8 516 $23.0 $31.0 $61.2 $1,151.0 $1,302.1 $5,285.4 $7,738.5

MS $108.7 2,265 $75.7 $107.4 $200.2 $8,225.3 $6,552.9 $17,590.1 $32,368.4

MO $974.1 16,688 $694.7 $920.3 $1,852.0 $26,905.4 $30,775.5 $161,327.9 $219,008.7

MT $4.3 84 $3.0 $4.3 $8.0 $160.9 $149.1 $676.4 $986.4

NB $3.9 75 $2.7 $3.9 $7.0 $811.4 $554.4 $607.9 $1,973.7

NV $0.0 0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

NH $20.7 318 $14.4 $20.1 $38.3 $808.9 $287.6 $3,301.4 $4,397.9

Year Total Rehab. National Economic Impacts Tax Impacts (2010 $ thousands)

 Costs (2010

$ millions) employment local state

(jobs)

2010 $ millions

income gdp output

federal total

continued on the next page
36

SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT | section 1

NJ $18.2 262 $12.9 $17.0 $34.6 $357.5 $538.7 $2,981.9 $3,878.1

NM $25.0 481 $17.7 $24.3 $47.2 $1,076.3 $1,062.8 $4,109.4 $6,248.5

NY $491.7 8,135 $350.4 $468.0 $925.3 $31,866.2 $26,999.1 $84,527.1 $143,392.3

NC $194.6 3,645 $137.0 $194.9 $364.4 $4,703.2 $6,802.4 $33,279.2 $44,784.8

ND $0.0 0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

OH $238.5 4,284 $169.8 $234.9 $452.8 $10,353.5 $8,723.3 $41,358.6 $60,435.4

OK $72.0 1,421 $51.3 $72.0 $137.6 $1,734.9 $2,505.3 $12,363.6 $16,603.8

OR $195.8 3,463 $142.1 $186.3 $381.1 $5,091.5 $6,861.3 $34,130.7 $46,083.4

PA $380.0 6,176 $275.8 $365.6 $740.9 $12,665.2 $10,740.4 $66,902.0 $90,307.7

RI $310.2 4,732 $211.6 $317.7 $558.0 $11,221.1 $9,812.4 $48,470.3 $69,503.7

SC $85.8 1,603 $59.5 $87.0 $156.7 $2,456.3 $2,752.6 $14,256.2 $19,465.1

SD $9.3 186 $6.5 $8.5 $17.3 $299.2 $174.6 $1,390.9 $1,864.6

TN $142.9 2,527 $100.2 $138.6 $266.3 $4,033.2 $3,061.2 $23,298.8 $30,393.2

TX $249.8 4,035 $180.9 $236.6 $489.2 $8,626.3 $4,955.9 $44,578.0 $58,160.1

UT $66.6 1,234 $46.7 $65.5 $123.7 $1,756.1 $2,220.5 $10,962.7 $14,939.3

VT $34.4 611 $24.9 $32.7 $66.0 $1,346.8 $1,697.5 $5,603.5 $8,647.8

VA $727.9 12,250 $520.9 $704.0 $1,386.9 $18,861.0 $24,448.2 $124,656.9 $167,966.1

WA $115.6 1,852 $82.9 $112.3 $222.1 $5,336.7 $4,178.9 $19,952.0 $29,467.6

WV $35.8 684 $24.8 $35.9 $65.2 $1,084.4 $1,251.3 $5,746.9 $8,082.6

WI $92.0 1,601 $65.2 $89.6 $172.8 $3,245.5 $3,704.7 $15,516.1 $22,466.3

WY $1.2 25 $0.9 $1.3 $2.4 $69.5 $44.3 $255.3 $369.1

Totals $8,812.2 145,149 $6,223.6 $8,418.6 $16,584.6 $392,266.2 $356,770.6 $1,469,051.7 $2,218,088.5

Year Total Rehab. National Economic Impacts Tax Impacts (2010 $ thousands)

 Costs (2010

$ millions) employment local state

(jobs)

2010 $ millions

income gdp output

federal total

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

Preservation Offices; and calculations by Rutgers University

EXHIBIT 2.5 (continued)

Economic and Tax Impacts of Federal HTC Investment on the Nation by 

State, Fiscal Years 2009 and 2010
37

section 1 | SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT

Jobs (person-years) 3,188 16,688 6,176

Income ($ million) 157.4 694.7 275.8

Output ($ million) 422.3 1,852.0 740.9

GDP* ($ million) 203.2 920.3 365.6

Taxes ($ million) 50.9 219.0 90.3

Federal ($ million) 37.9 161.3 66.9

State ($ million) 6.2 30.8 10.7

Local ($ million) 6.9 26.9 12.7

Jobs (person-years) 2,429 12,417 4,803

Income ($ million) 122.4 522.6 216.4

Output ($ million) 289.7 1,205.7 522.0

GSP* ($ million) 152.2 640.6 276.3

Taxes ($ million) 46.6 198.6 82.5

Federal ($ million) 35.8 152.8 63.1

State ($ million) 5.2 25.6 9.0

Local ($ million) 5.6 20.2 10.4

In-state wealth* 135.3 568.3 333.3

($ million)

I: Illinois Rehabilitation 

Using HTC—$216.3 

million FY 2009 and 

2010 total rehabilitation 

costs results in:

Direct Effects

National 

Total Impacts 

(Direct and 

Multiplier)

State Portion 

of National 

Total Impacts

II: Missouri 

Rehabilitation Using 

HTC—$974.1 million FY

2009 and 2010 total 

rehabilitation costs 

results in:

III: Pennsylvania 

Rehabilitation Using 

Federal HTC—$380.0 

million FY 2009 and

2010 total rehabilitation 

costs results in:

national total (direct and multiplier) impacts

in-state total (direct and multiplier) impacts

Sources: Rutgers University, Center for Urban Policy Research, 2011

*GDP = Gross Domestic Product; GSP = Gross State Product; In-state wealth = GSP less federal taxes

Note: Totals may differ from indicated subtotals because of rounding

EXHIBIT 2.6 

Summary of the Two-Year FY 2009 and 2010 Economic Impacts of 

Federal HTC Investment in Illinois, Missouri, and Pennsylvania
38

SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT | section 1

EXHIBIT 2.7 

Historic Tax Credits: State Programs

WA

OR

CA

NV

UT

MT

WY

CO

NM

TX

OK

KS

NE

SD

ND

MN

IA

MO

AR

LA

WI

IL

MS AL GA

FL

TN

KY

IN

MI

MI

OH

NC

VA

PA

NY MA

NH

VT 

WV

DE

NJ

CT RI

ME

AZ

HI

SC

MD

ID

AK Legend

Existing HTC program

Legislation introduced 

for HTC program

No state HTC program

Source: Novogradac and Company LLP
39

section 1 | SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT

data Source: U.S. Census 2009 TIGER/Line; Historic Preservation Office of the Kanses State Historical Society

EXHIBIT 2.8 

Kansas County Map of Costs of Projects Receiving State Tax Credits

washington

marshall

leavenworth

wyandotte

douglas

shawnee

geary

riley

lyon

chase

cowley montgomery

sedgwick

harvey

reno

rice

mcpherson

saline

ellsworth

ellis

franklin

Legend

County

Estimated Project Cost

$11,468-$372,285

$372,285–$1,063,507

$1,063,507–$3,608,173

$3,608,173–$8,463,874

$8,463,874–$15,151,607

$15,151,607–$22,926,185

$22,926,185–$50,817,794
40

SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT | section 1

EXHIBIT 2.9

Selected Census Data for Overall State of Kansas and Areas with Kansas 

State Historic Tax Credits (KHTC)

Zip Codes and 2000 Census Data

Source: Kansas Historic Tax Credit Database and Rutgers University analysis of Kansas Census (2000) data by zip code

254.8 20.3 92.3 7.7 $37,338 10.3 3.4

532.8 52.4 85.3 14.7 $34,085 12.8 5.3

800.0 81.2 70.7 29.3 $31,656 17.3 8.7

31.8 $60,534 13.7 25.5

30.4 $60,128 14.0 29.9

37.4 $61,020 15.9 36.6

Population

Population

Density (per

square miles

%

urban

median

household

income

%

white

%

poverty

% minorities

(non-white 

& hispanic)

%

unemployed

median housing 

values (all

owner-occupied

pay more than 

30% of income for

owner-occupied

housing

% renter

occupied housing

pay more than 

30% of income for

rental housing

KHTC Locations

Average of all zip 

codes with KHTC 

historic rehabilitation 

projects

Average of top 10 

zip codes with KHTC 

historic rehabilitation 

projects

KHTC Locations

Average of all zip codes with 

KHTC historic rehabilitation 

projects

Average of top 10 zip codes 

with KHTC historic rehabilitation 

projects

Total Kansas

Average of all zip 

codes in Kansas

Total Kansas

Average of all zip

codes in Kansas

housing units
41

section 1 | SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT

EXHIBIT 2.10

Summary of Cumulative Investment and Benefits of the Kansas Historic 

Tax Credit

FY 2002–2009

Total (Direct and Multiplier) Impacts of the KHTC (Cumulative $271.0 million, FY 2002-2009)

Economic Benefits to Kansas

Jobs (person-years) 4,443

Income $141.6 million

Output $323.2 million

Gross state product $182.9 million

Total taxes $56.2 million

Federal taxes $41.4 million

State & local taxes $14.8 million

State-alone taxes $7.8 million

In-state wealth (GSP less federal taxes) $141.5 million

Jobs and Income Benefits to Kansas by Economic Sector

Jobs Income

Construction 2,003 $69.9 million

Services 832 $27.3 million

Retail trade 605 $8.7 million

Manufacturing 500 $17.4 million

Other Sectors 503 $18.3 million

Total 4,443 $141.6 million

Direct Rehabilitation

Investment in Kansas

$63.0

million

$208.0

million

State-alone

State- and federal-combined

$90

$80

$70

$60

$50

$40

$30

$20

$10

$0

Gross State Product (Economic Value Added) Created

by KHTC-Aided Rehabilitation

($271.0 million cumulative, FY 2002-2009)

$0.2 $1.1 $3.3

$84.8

$26.1

$6.5 $6.3

$14.4 $12.1

$27.6

$0.7

Agriculture

Argi. Serv, Forestry, Fishing

Mining

Construction

Manufacturing

Transport & Pub. Utilities

Wholesale

Retail Trade

Finance, Ins.

& Real Estate

Services

Government

43

Thus far the analysis has quantified the economic impacts of the federal HTC as estimated by the Rutgers Input-Output model (PEIM). Our review has also briefly examined the important state historic tax credits. We get a further perspective on the federal and state HTC’s impacts through qualitative case study analysis. The latter describe 

what transpired on a project by project basis and provide not only the local economic 

impacts, but additionally what the rehabilitation aided by the federal HTC has meant to 

local communities.

As part of the current investigation, five case studies were conducted. The five cases 

involved the rehabilitation of the:

• Mayo 420—Tulsa, Oklahoma

• Maritime Building—New Orleans, Louisiana

• Old Salem Jail—Salem, Massachusetts

• Professional Arts Building—Baltimore, Maryland

• Roosevelt-Lincoln Junior High School—Salina, Kansas

Each case study is organized is a parallel format that includes the following sections:

• Project summary

• Property description

• Project description

• Project budget and sources of funding

• Project results/impacts

We encourage the reader to browse all five case studies for they show the important 

preservation “facts on the ground” realized by the federal HTC. As a preview of the five 

cases, we offer the following synopsis. 

The case studies point to how the federal HTC (as well as other allied programs) have 

helped foster the stabilization and revitalization of older yet important neighborhoods in various communities across the country and have encouraged adaptive reuse, 

SECTION 2

Qualitative Impacts of the Federal

Historic Tax Credit—Selected National

Case Studies
44

SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT | section 2

sometimes with the added bonus of providing affordable housing. This year’s featured 

projects include two large mixed-use (market rate housing, office and retail) projects, 

Mayo 420 in downtown Tulsa and Maritime Building in New Orleans’ Central Business 

District. Also included is the Old Salem Jail in Salem, MA, the conversion of an early 

19th century jail into market rate housing and a restaurant. The Professional Arts Building in Baltimore’s Mount Vernon neighborhood provides moderate income housing for 

graduate students and young professionals and includes a first-floor grocery and café. 

The Roosevelt-Lincoln Junior High School in Salina, KS was adaptively reused for lowincome senior housing. 

In the aggregate, the 5 projects had total costs of $112,718,926, ranging from about 

$8.6 million to about $36.5 million, with an average cost of $22.5 million. 

Of the total project costs, rehabilitation and construction costs were most significant 

at $67.6 million, (59% of total), followed by soft and other costs, $33.0 million (29%), 

and finally acquisition costs, which were $12.0 million (11%). The sources of total project 

funds—$112.7 million—came from a variety of sources including $56.3 million in equity, 

$46.9 million in debt and $9.5 million from 

other sources.

A total of $42.5 million in equity came 

from various tax credits including federal 

and state HTCs and federal New Markets 

and Low-Income Housing Tax Credits. The 

developers contributed $13.9 million in equity. All of the five case studies “twinned” the 

federal Historic Tax Credit with either state HTCs, the LIHTC or the NMTC. Tax credit 

assistance of various types is absolutely crucial for the financing of historic rehabilitation projects. 

Taking on debt was the second largest source of funding for these five case studies. Of 

the $46.9 million in debt, $27.5 million was acquired through banks, and $19.4 million 

through government loans or other sources. 

In summary, successful rehabilitation projects are enabled by a layering of sources of 

funds and various subsidies, anchored by the federal historic and complementary credits.

Tax credit assistance of various types

is absolutely crucial for the financing

of historic rehabilitation projects.
45

section 2 | SECOND ANNUAL REPORT ON THE ECONOMIC IMPACT OF THE FEDERAL HISTORIC TAX CREDIT

EXHIBIT 3.1

Summary of Costs and Funding Sources of Five Historic Rehabilitation 

Case Studies

Mayo 420 Maritime Old Salem Professional Roosevelt– Total

 Building Jail Arts Lincoln

$1,399,000 $6,800,000 $160,000 $3,660,000 $2,500 $12,021,500

$22,303,733 $16,639,999 $8,034,444 $14,028,643 $6,611,904 $67,618,723

$7,083,569 $13,094,461 $3,299,583 $7,575,891 $2,025,199 $33,078,703

$30,786,302 $36,534,460 $11,494,027 $25,264,534 $8,639,603 $112,718,926

$8,700,000 — $4,915,000 $12,770,000 $1,100,000 $27,485,000

$3,000,000 $16,422,100 — — $0 $19,422,100

$12,649,162 $12,111,980 $3,938,266 $6,466,224 $7,281,110 $42,446,742

$2,181,140 $6,950,380 $1,750,000 $3,022,832 $0 $13,904,352

$4,256,000 $1,050,000 $890,760 $3,005,479 $258,493 $9,460,732

$30,786,302 $36,534,460 $11,494,026 $25,264,535 $8,639,603 $112,718,926

Uses

Acquisition

Rehabilitation

Soft Costs

Total Uses

Sources

Bank Debt

Non Conv. 

Debt

Equity—

Credits

Equity—

Developer

Other

Total Sources

48 Mayo 420

Tulsa, Oklahoma

51 Maritime Building

New Orleans, Louisiana

54 Old Salem Jail

Salem, Massachusetts

58 Professional Arts Building

Baltimore, Maryland

61 Roosevelt-Lincoln

Junior High School

Salina, Kansas

Case Studies
48

case study 1: Mayo 420

48

case study­: mayo 420

Project Profile

Current Name: Mayo 420

Historic Name: The Mayo Building

Owner: Wiggin Properties, LLC, Tulsa, OK

Construction date: 1909-1910

Date of Rehab: 2008-2010

Original Use: Office space and furniture business

New Use: Mixed use; upper floor apartments and 35,000 square feet

of retail and office space, including a YMCA fitness facility

Federal Historic

Tax Credits: $6,251,400

Total Project Costs: $30,786,302

Housing Units: 67

Incentives: Federal Historic Tax Credits

Other Incentives: State historic and New Markets Tax Credits

The rehabilitation of the Mayo Building revitalized a storied Tulsa landmark that was 

nearly 100% vacant for almost 15 years. The project created 67 units of market rate 

loft housing, in keeping with the economic development objectives of the City of Tulsa 

to create housing downtown. YMCA of Greater Tulsa occupies approximately 24,000 

square feet of the Mayo Building for its offices and a health club facility, ensuring that 

its programs to promote physical and emotional well-being are available to the diverse 

residents in the surrounding community.
49

Community Demographics

City of Tulsa Population in 2009: 389,625

Estimated Median Household Income in 2009: $38,426

Estimated Median House or Condo Value in 2009: $121,100

About the Property 

The Mayo Building was completed in 1910 as a five-story commercial building that 

housed John and Cass Mayo’s growing furniture business and offices in downtown 

Tulsa, just as the city was becoming the “oil capital of the world.” At five stories tall, 

it was only the fourth building in Tulsa of this height. Subsequent construction in 1914 

created a mirror image addition to the north, and five more stories were added in 1917. 

The Mayo Building is the oldest of Tulsa’s remaining original oil business buildings and 

is the oldest office building in the city. It is one of a group of nine other office buildings in the vicinity that reflect the city’s dominant Art Deco architectural style. Wiggin 

Properties, LLC bought the property in 2006, rescuing it from a prolonged period of 

near total vacancy. The project, and other similar residential conversion development 

projects nearby, including the historic Mayo Hotel and the Philtower represent an important evolution of downtown Tulsa, which by the early 2000s, had 40% of its land in 

use as surface parking lots.

Project Description

Wiggin Properties, LLC has invested in a wide 

range of commercial projects in Oklahoma City 

and Tulsa, valued at $72 million over the last five 

years. The architect was Kinslow, Keith & Todd, an 

architecture firm based in Tulsa that has experience with more than 100 major projects. Wiggin 

Properties is also serving as general contractor 

and property manager. 

The scope of work involved replacement of all 

HVAC, mechanical, electrical and plumbing systems, removal of non historic interior partition walls, dropped ceilings and other inappropriate additions and replacement of damaged granite panels and the terra cotta 

cornice with in-kind materials. The historic trim and details in the lobbies and corridors 

were restored as were original door openings and tile and terrazzo floors.

Community Benefits

> 308 construction jobs

> 75 permanent jobs

> $1.59 million in state and 

local taxes

> $25.96 million in gross 

state product
50

case study 1: Mayo 420

50

Project Budget

Uses Amount

Acquisition $1,399,000

Rehabilitation Hard Costs $22,303,733

Soft Costs $1,233,179

Financing Costs $994,390

Reserves $300,000

Deferred Developer Fee $4,566,000

Total Development Cost $30,786,302

Funding Sources 

Equity/debt from Historic $12,649,162

& New Markets Tax Credits

Loan—Bank of Oklahoma $8,700,000

Loan—City of Tulsa’s Vision 2025 $3,000,000

Managing Member Equity $2,181,140

Deferred Developer Fee: $4,256,000

Total Funding Sources $30,786,302

Results

The $31 million rehabilitation of the historic Mayo Building converts the property into 67 

upper-floor apartments and approximately 35,000 square feet of nonprofit, restaurant 

and office space. The YMCA of Greater Tulsa is currently leasing 95% of the basement 

and lower two floors at below-market rent for its health club and offices. From this location, the YMCA operates its health and wellness programs, including those targeted at 

youth and at-risk populations. The creation of downtown housing is viewed as an important component of Tulsa’s growth plan, and complements other downtown development 

projects, including the recently opened BOK Center, a 19,000 seat multi-purpose arena, 

and ONEOK Field, the new downtown ballpark. City views, polished concrete floors and 

original crown molding make for distinctive housing that provides residential tenants 

convenient access to shopping, dining and entertainment.
51

case study 2: The Maritime Building

51

Case Study: The Maritime Building

800 Common Street, New Orleans, Louisiana

Project Profile

Current Name: Maritime Building

Historic Name: Originally named the Hennen Building,

later called the Latter and Blum Building

Construction date: 1893

Date of Rehab: 2010

Original Use: Commercial structure

New Use: Mixed-use residential, office, retail 

Total Project Costs: $36,534,460

Federal Historic Tax

Credit (HTC) Equity: $6,811,980

Housing Units: 105 market-rate residential units with 9,000 

square feet of ground floor commercial space

and 11,300 sf of second floor offices. 

Other Financial

Incentives: State Historic Tax Credits, New Markets Tax Credits 

(NMTC), U.S. Department of Housing and Urban

Development (HUD) Federal Housing Administration 

(FHA)-insured loan

New Orleans’ first skyscraper is located in the heart of downtown New Orleans, one block 

off of Canal Street, on the corner of Carondelet and Common Streets. Built in 1893 as the 

Hennen Building by Architect Thomas Sully and holding the title of the city’s tallest building from 1895-1904, this building has always been a first-class address with a rich history.
52

case study 2: The Maritime Building

52

About New Orleans 

Population in July 2009: 354,850

Estimated median household income in 2009: $36,468

Estimated median house or condo value in 2009: $192,600 

About the Property

The Maritime building, damaged by and subsequently vacated after Hurricane Katrina 

when Latter & Blum Realtors Inc. moved to the Warehouse District, has gone through 

many major transformations in its 116-year history. In 1920, when Canal Bank & Trust Co. 

wanted to move into what had become the heart of the city’s banking sector, the previously symmetrical building was extended along Carondelet Street to make more room 

for the vaults. The second floor was modified to create elegant, arched windows befitting 

a bank lobby, and an observatory on top of the building that overlooked the river was 

enclosed to create an 11th floor. All the window bays on Carondelet have views of Bourbon 

Street because of the curve in the road. A Registered Historic Place, the building is located in the New Orleans Central Business District. 

Project Description

The project involves the renovation of the historic property into 105 market-rate apartments, 

and 11,800 sf of retail and office space. The number of downtown rental residential dwelling 

units in New Orleans has declined over the past six to eight years, as many historic buildings 

have been converted from rentals to condominiums. This conversion process, combined 

with the destruction of tens of thousands of single and multifamily units throughout greater 

New Orleans by Hurricane Katrina, has created a shortage of rental housing.

Since the hurricanes of 2005, most developers have focused on mixed or low-income 

developments but few 100 percent market-rate projects have begun construction. Maritime is only the fourth downtown market-rate residential development announced since 

the storm (two have been completed and construction on the third has just begun); all 

four projects total only 400 units.

The residential density in downtown New Orleans must increase dramatically because it is 

one of only a few areas in the city on higher ground. Additionally, the existing CBD condominiums and rentals need more amenities, such as grocery stores, pharmacies, banks and 

bookstores. The Maritime Building’s ground floor will include a regional bank, a coffee and 

crepe cafe—both of which will support further downtown residential development. “New 

Orleans has a very tight, heavily walked downtown area, so this building is well-located,” 

Wisznia says. “It’s very close to major office buildings and one block to the French Quarter 

and all of its restaurants, cafes, theaters, museums- everything people seek in urban living.”

Community Benefits

> 334 construction jobs

> 366 permanent jobs

> $1.99 million in state 

and local taxes

> $24.94 million in 

gross state product
53

Project Budget

Uses Amount

Acquisition $6,800,000

Rehabilitation Hard Costs $16,639,999

Soft Costs $4,796,249

Other Financing Costs $8,298,212

Total $36,534,460

Funding Sources

The Maritime Building project used an acquisition bridge loan from Wells Fargo Bank, which 

assisted in maintaining site control as the additional financing was arranged. Project financing 

consisted of equity from the state and federal NMTCs and HTCs described above and construction/permanent financing in the form of an FHA 221(d)(4) loan. Wells Fargo will also be 

the FHA lender. A local community bank, Omni Bank, is providing tax credit bridge financing.

FHA Mortgage $16,422,100

Federal HTC Equity $6,811,980

Louisiana HTC Equity $3,500,000

Federal NMTC $1,800,000

Deferred Architect and Developer Fees $1,050,000

Builder’s Profit $1,919,464

Owners’ Equity Contribution $5,030,916

Total $36,534,460

Results

The Maritime Building received permission from HUD to occupy the apartments in late 

November 2010, and the first tenant moved in on December 1st. Wisznia | Architecture + 

Development moved into its upper-floor office space in April of 2011. Hancock Bank continued to occupy the majority of the ground floor throughout the renovation of the building. The remaining small retail spaces are anticipated to be fully occupied by spring 2011. 

The Maritime project was the first FHA-insured mortgage transaction to utilize the “master 

lease pass-through” legal structure which maximizes the value of the federal HTC. “Maritime has blazed a trail that will allow developers in other markets to turn their sights toward renovating beautiful historic buildings while still benefiting from the attractive terms 

offered by FHA mortgage financing – an especially important factor in a down economy 

and a tight credit environment where FHA financing is often the only game in town,” said 

Edward Featherstone, Wisznia’s vice president of development.
54

case study 3: old salem jail

54

Case Study: Old Salem Jail

50 St. Peter Street, Salem, Massachusetts

Project Profile

Current Name: Salem Jail Complex

Historic Name: Old Salem Jail

Owner: Salem Redevelopment Authority

Construction date: 1811-1813

Date of Rehab: 2006-2009

Original Use: Jail

New Uses: Mixed-use Building

Total Project Costs: $11,494,027

Federal Historic Tax

Credit (HTC) Equity: $2,331,466

Residential

Units Types: 23 one- and two-bedroom apartments

Commercial Space: Restaurant and museum exhibit space 

Other Incentives: State Historic Tax Credits 

About Salem 

Population in 2009: 41,361 

Houses built before 1960: 12,753

Estimated Median Household Income in 2009: $60,642

Estimated Median House or Condo Value in 2009: $326,688 
55

About the Property

The renowned Old Salem Jail, since rehabilitation known as the 

Salem Jail Complex, is located at 50 St. Peter Street occupying 

a 1.12-acre site in downtown Salem, Massachusetts. The original 

property included an 1813 Gothic-style jail, and a three-story jail 

keeper’s house displaying the typical Federal period characteristics common in brick residences at that time. A third building was 

later constructed as a carriage house that had been previously 

torn down due to poor condition. The main jail building housed 

captured British Soldiers from the War of 1812, held a total of 

100 cells and during its use as a jail, and witnessed 50 hangings 

under its roof. Although never confirmed, the assumed builder of 

the Jail was famous local architect, Samuel Field McIntire, one of 

the earliest architects in the United States. 

The Old Salem Jail had the reputation for being one of the most haunted sites in Salem. 

Urban explorers would use the location as a favorite spot for paranormal activity and 

luring peculiar behavior around the town. It was also known for being one of the oldest 

correctional facilities in the country, maintaining its original function until it was vacated 

in 1991. 

In 1999, Historic Salem worked with the Massachusetts Historical Commission to provide pro bono architectural and engineering services to repair damages from a massive 

fire. Later that year the site was given to the City of Salem. The Old Salem Jail continued to remain undeveloped, amplifying the dilapidated appearance it had acquired 

over the years. This resulted in the property’s listing on both the Historic Salem and 

Preservation Massachusetts Most Endangered Resources Lists. These listings furthered 

the impetus for historic rehabilitation. 

Project Description

In 2004, the Old Salem Jail was established as a top preservation priority in terms 

of redevelopment, thus, initiating a transfer in ownership from the City of Salem to 

the Salem Redevelopment Authority (SRA). Site control by SRA allowed residents of 

greater Salem, in addition representatives of interested boards and commissions, to 

voice opinions throughout the planning process. 

The City of Salem and SRA planned the adaptive reuse utilizing thorough research 

conducted by highly qualified teams. After extensive studies were performed to support the need for rehabilitation and a competitive selection process was completed, 

New Boston Ventures, a Boston-based developer that specializes in historic buildings, 

was welcomed to the team.

Community Benefits

> 64 construction jobs

> 75 permanent jobs

> $.58 million in state 

and local taxes

> $8.34 million in 

gross state product
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case study 3: old salem jail

New Boston Ventures’ vision was to restore the Old Salem Jail and create a mixeduse building consisting of residential units, a restaurant and a museum to provide a 

glimpse of the jail’s infamous history.

Project Budget

The articulated budget displays the benefits of utilizing the state Historic Tax Credit 

system. With over 96% of the total costs being eligible for a historic tax credit, and 

having a state tax credit of 20%, the award earned for the project was just over 2.3 

million.

Uses Amount

Acquisition $160,000

Construction Hard Costs $8,034,444

Soft Costs $1,077,140

Financing Costs $234,220

Operating Reserves $240,320

Developer Fee $1,747,903

Total Development Costs $11,494,027

Project Funding

Of the funds that the Old Salem Jail rehabilitation was provided, the Historic Tax 

Credits are the most notable. The project was able to generate over 2.3 million in 

federal equity and 1.6 million in state equity, totaling 3.9 million, which was 34% of 

the total cost of the budget.

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Source of Funds Permanent Amount

Citizens Bank Construction/ $4,915,000

Mini-perm loan

Federal Historic Tax Credit Equity $2,331,466

Massachusetts State Historic $1,606,800

Tax Credit Equity

Managing Member Equity $1,750,000

Developer Fee $890,760

Total Sources $11,494,026

Project Results

The ribbon cutting ceremony for the renovated Salem Jail Complex was celebrated in 

May of 2010 showcasing the 1813 jail, the jail master’s house and a new building that replaced the carriage house. Each unit is unique, especially those within the old jailhouse 

which have windows that extend from the ceiling to floor and cathedral ceilings up to 

18 feet high. On each entry door hangs one of the jail’s original cell doors. The public 

museum that was added to the property displays historic material that was not reused 

as part of the rehab and artifacts from original jail cells. The Great Escape Restaurant 

is designed with a jail theme featuring brick walls, the original two-foot thick granite 

floor, a bar made out of recycled cell doors, and cell bars all around.

As a result of its creative reuse plan, the Salem Jail Complex was honored with a 

Timmy Award under the Best Mixed-Income or Market-Rate Residential category. The 

Timmy Awards, created by the National Housing and Rehabilitation Association as a 

tribute to Boston architect and preservation advocate J. Timothy Anderson, honor outstanding rehabilitation and preservation projects based on overall design and quality, 

interpretation and respect of historic elements, impact on the community, and financial 

and market success.

“Historic Salem supported the revitalization of the Old Salem Jail with the 

understanding that the use of federal and state credits was a reasonable and creative 

solution to difficult economic realities.”

Historic Salem Inc
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case study 4: professional arts building

58

Case Study: Professional Arts Building

101 West Read Street, Baltimore, Maryland

Project Profile

Current Name: Professional Arts Building

Historic Name: Medical Arts Building

Construction date: 1927 

Date of Rehab: 2009

Original Use: Professional office space 

New Use: Residential, retail 

Total Project Costs: $25,264,534

Federal Historic Tax

Credit (HTC) Equity: $4,497,496

Housing Units: 96

Other Incentives: State Historic Tax Credits 

About the Property 

Originally constructed as the “Medical Arts Building” in 1927, the Professional Arts Building at 101 West Read Street served as offices for medical professionals until it saw a 

decline in occupancy in the 1990s. The large 110,000 square foot (sf) building was left 

more than seventy-five percent vacant for a decade prior to its rehabilitation in 2009. 

Featured restoration work included repairing an original terra cotta balustrade, refurbishing the first-floor and elevator lobbies and restoring the storefront on Cathedral Street.
The Project is located in the Mt. Vernon neighborhood of Baltimore, MD. Mt. Vernon is 

an emerging, historic, mixed-use area just north of the central business district (CBD) 

that is home to many of the city’s major cultural institutions and attractions including 

the Walters Art Museum, Maryland Institute College of Art, Meyerhoff Symphony Hall, 

the Lyric Opera and the Peabody Institute. 

Also nearby is State Center, three large State of Maryland office buildings that house 

numerous state agencies. The area has experienced a substantial amount of residential development in the past five years, including the renovation of a number of historic buildings. 

About Baltimore 

Population in July 2009: 637,418 

Estimated median household

income in 2009: $38,772

Estimated median house

or condo value in 2009: $168,400

Project Description

The project involves the conversion of the property into 96 

apartments, 1,709 sf of ground floor retail space along Cathedral 

Street, rental storage units, a fitness center and a community 

room. There are 14 studios, 49 one-bedroom/one-baths, 8 onebedroom plus dens, and 25 two-bedroom/two-bath units. The 

project has priced 100% of the units to be affordable to households earning between 80% and 120% of area median income, 

well above the 10% set aside required under the new inclusionary 

zoning provisions of the Mount Vernon Urban Renewal Plan.

Project Budget

Uses Amount

Acquisition $3,660,000

Rehabilitation Hard Costs $14,028,643

Soft Costs $1,648,444

Financing Costs $1,542,334

Reserves $941,229

Developer Fee $3,443,884

Total $25,264,534

Community Benefits

> 171 construction jobs

> 191 permanent jobs

> $1.36 million in state 

and local taxes

> $17.15 million in 

gross state product

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case study 4: professional arts building

Funding

Union Bank of California provided a $12.77 million construction and mini-perm loan, 

and an equity bridge loan of $4.67 million. The perm loan is for 5 years at a rate to be 

fixed upon maturity of the construction loan. Somerset Development purchased an 

interest rate buy-down with the projected rate of 5.89%. The developer and several 

cash investors have provided about $3 million in equity. Citigroup was the investor in 

the federal Historic Tax Credits. Old Mutual Financial Network, an insurance company 

headquartered in Baltimore, provided equity in exchange for the use of the Maryland 

state Historic Tax Credits. 

Funding Sources

Loan—Union Bank of California $12,770,000

Old Mutual Financial Network $1,968,228

(State Investor)

Managing Member Equity $3,022,832

Equity from Federal HTC and $4,497,996

Deferred Developer Fee $3,005,479

Total $25,264,534

Results

Mayor Sheila Dixon and Congressman Elijah Cummings officiated at the ribbon cutting 

on June 29, 2009, along with many other dignitaries, residents, and neighbors. As of 

November 2010, 95% of the units were occupied. The ground-floor commercial space 

is leased to Milk and Honey Market Cafe, a locally-owned food market, coffee shop 

and cafe. The market features locally and regionally sourced meats, artisanal cheeses, 

produce, fresh baked breads, fresh pastas and fresh squeezed juices. The successful 

rehabilitation of the Professional Arts Building earned a “2010 Historic Preservation 

Award” from Baltimore Heritage.

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Case Study: Roosevelt-Lincoln Junior High School

210 W. Mulberry St., Salina, Kansas

Project Profile

Current Name: Pioneer President’s Place

Historic Name: Roosevelt-Lincoln Junior High School

Owner: Pioneer Group, Topeka, KS

Construction date: 1915-1925 

Date of Rehab: 2005-2006

Original Use: Public Schools 

New Use: Low-Income Senior Housing 

Total Project Costs: $8,639,603

State Historic

Tax Credits: $2,042,886

Housing Units: 61 (Rents start at $275/month.)

Incentives: State and Federal Historic Tax Credits,

Low Income Housing Tax Credits,

Property Tax Rebate for 10 years.

This rehabilitation project converted recently vacated public schools in downtown 

Salina into low-income senior apartments. The 61-unit complex routinely boasts a 100% 

occupancy rate, and a property once described by the local newspaper as having the 

potential to become “a conspicuous downtown eyesore” is now an architectural gem in 

the center of the community. 

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case study 5: roosevelt-lincoln junior high school
62

About Salina 

Population in 2008: 46,483 

Estimated Median Household

Income in 2008: $40,848 

Estimated Median House

or Condo Value in 2008: $119,119

About the Property

The Roosevelt Lincoln Junior High School Campus occupies most of a city block in 

downtown Salina. The property is listed in the National Register of Historic Places for 

its significance in the areas of Education and Architecture. The school buildings on the 

property today date to the first part of the 20th century. Lincoln School occupies the 

north end of the complex, and Roosevelt School sits to the south. Lincoln School was 

built 1915-1917, and Roosevelt School was completed in 1925. 

As is often the case with public schools, enrollment eventually outstripped the original capacity, and the buildings 

were expanded several times over the years. By the late 

1970s, a pair of large blond brick structures had been built 

in the courtyard between the buildings, and a low enclosed 

walkway connected the south door of Lincoln School with 

the modern buildings in the courtyard. They were practical 

additions, but unsympathetic to the historic architecture.

Even with the additions, the school district eventually outgrew the property, and the last classes were held there in 

the 2002-2003 school year. Salina was left with an architectural white elephant in the core of the community.

In the interest of seeing the buildings restored and returned 

to use, the Salina School board conducted a careful search 

for parties who might be interested in redeveloping the 

property. After a competitive bidding process, Pioneer 

Group of Topeka was given the right to buy the vacant complex and convert the property to low-income senior housing. 

Community Benefits

> Potential eyesore close to 

downtown converted to 

clean safe senior housing.

> More than $3.5 million in 

construction wages during 

the project.

> More than $2 million spent 

with Kansas companies for 

construction materials.

> Increased property values 

in the neighborhood.

case study 5: roosevelt-lincoln junior high school
63

Project Description

Pioneer assembled an expert team of Kansas-based professionals, which included 

Treanor Architects and General Contractor J. E. Dunn, both of Topeka, and Sunflower 

Bank of Salina provided construction financing. In addition to following the many requirements associated with Low Income and Historic Tax Credits, the team met nationally recognized LEED green building standards. Just over $3.5 million was paid in 

construction wages alone, and another $2.3 million went to Kansas suppliers of building materials. The developer and all of the professionals involved are based in Kansas. 

Project Budget

Uses Amounts

Acquisition $2,500

Rehabilitation Costs $6,611,904

LEED Certification $255,000

Architectural and Engineering Fees $515,176

Construction Period Interest, $127,176

Insurance, & Real Estate Taxes

Financing Costs $128,139

Soft Costs $999,708

TOTAL $8,639,603

Among the local dignitaries and interested parties to attend the ribbon-cutting in 

2006 was retired City Manager Frank Kissinger, who spent many hours as city manager ensuring that the project would work. Also attending was Lois Smith-Roby, who 

attended Lincoln School in the 1940s. Her opinion of the rehab was included in the 

front-page article announcing the completion of the project. One can assume that her 

sentiments were shared with many: “I think it’s wonderful.”

Funding

With total project costs exceeding $8.5 million and monthly rents starting at $275, a 

variety of funding sources were needed to make sure the completed project was financially feasible. Fortunately, the developers were able to qualify for state and federal 

HTCs, as well as Low Income Housing Tax Credits. As the budget shows, all of those 

sources were needed to make the project viable. Without any one of them, the buildings could well be empty yet today. 

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case study 5: roosevelt-lincoln junior high school

64

Funding Sources

Deferred Developer Fee $258,493 

Equity from Low-Income $4,374,083 

Housing Tax Credits @ $0.85

Equity from Federal and State HTCs $2,907,027

Tax Credits @ $0.86 & $0.73 

Permanent Financing (7.5%, 30 YRS) $1,100,000

Total Funding Sources $8,639,603 

Results

This project is already breathing more life into Salina’s downtown, supporting existing 

businesses and encouraging new business creation. The restored auditorium at Lincoln 

School, open to both residents and the general public, is developing into a favorite 

community gathering space. The complex routinely has an occupancy rate of 100%. It 

has also given a boost to the owners of surrounding rental properties, who have enjoyed an improved overall rental market due to the presence of this large, well-maintained complex. 

Ross Freeman, President of Pioneer Group, the developer for Pioneer Presidents’ Place, 

noted, “This was a wonderful economic development project for Kansas. It employed 

a huge number of Kansans, and generated a lot of economic excitement in and around 

Salina. It also utilized existing infrastructure and has brought more people to live in the 

downtown area, helping further revitalize downtown businesses. We would not have 

even considered the project if the historic tax credits were not available.”

In addition to saving the historic buildings and creating clean, safe senior housing, the 

rehabilitation project injected more than $8 million directly into the Kansas economy. 

All of that money was spent before any historic tax credits were issued.

This case study is extracted from a study by Rutgers University that was prepared for the Kansas Preservation Alliance that 

was released in March 2010—Economic Benefits and Impact of Historic Preservation in Kansas. The Salina case study was 

prepared by Deb Sheals, historic preservation consultant, Columbia, MO.

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

732-932-5475

Web: policy.rutgers.edu

Email: ejb@policy.rutgers.edu

The HIstoric Tax Credit Coalition

Michael Hanson

email: hanson@thec2group.com

P 202.567.2905

F 202.393.7887

Liberty Place

325 7th Street NW

Suite 400

Washington, DC 20004

1785 Massachusetts Avenue, NW

Washington, DC 20036

www.NTCIC.com